- Pacgen Reports Third Quarter Financial Results
Pacgen Reports Third Quarter Financial Results
Vancouver, BC, Canada (March 1, 2011) – Pacgen Biopharmaceuticals Corporation ("Pacgen") (TSX-V: PGA) reported financial results from its third quarter ended December 31, 2010. The Company recorded a net income of $5,028 ($0.00 per common share) for the three months ended December 31, 2010, as compared to a net loss of $468,181 ($0.02 per common share) for the three months ended December 31, 2009. On a year-to-date basis, the Company recorded a net income of $266,112 ($0.01 per common share) for the nine months ended December 31, 2010, as compared to a net loss of $1,110,484 ($0.06 per common share) for the nine months ended December 31, 2009. The decreased net losses in both periods in the current fiscal year, as compared to the same periods in the preceding fiscal year were due to cash payment discounts and debt forgiveness resulted from the recent financing restructuring, as well as the reduced operating expenditures of the Company.
As of December 31, 2010, the Company had cash and cash equivalent of $39,928 (March 31, 2010 - $6,065) and working capital deficiency of $305 (March 31, 2010 - $2,112,280). Excluding indebtedness under financial restructuring of $26,521, working capital as of December 31, 2010 was $26,226. Management estimates that the adjusted working capital of $26,226 should be sufficient to finance the Company’s core business development operations and financial obligations over the current fiscal year ending March 31, 2011. The Company is currently seeking additional capital to finance its operations. Management is considering all financing alternatives including equity financing, corporate transaction, licensing arrangement and disposition of technology portfolio.
As of February 22, 2011, there were (i) 41,690,494 common shares issued and outstanding, (ii) 2,311,367 common share purchase warrants outstanding at a weighted average exercise price of $0.60 per common share, and (iii) 1,405,000 incentive stock options outstanding at a weighted average exercise price of $0.86.
For complete financial results, please see the Company’s filings at www.sedar.com.
Pacgen is a life science technology transfer company focused on the commercial development of novel therapeutic drug candidates up to Phase II, proof of concept efficacy in human. Pacgen sources innovative therapeutic drug candidates globally, and develops these drug candidates in accordance to the United States Food and Drug Administration regulatory standards to feed the product development pipelines of the pharmaceuticals industry. Pacgen's technology portfolio is composed of PAC-113, an anti-fungal for the treatment of oral Candidiasis, and PAC-G31P, a novel peptide therapeutic designed to treat inflammatory diseases characterized by non-beneficial neutrophil.
PAC-113 is a 12 amino-acid antimicrobial peptide derived from a naturally occurring histatin protein found in human saliva. This peptide alters the permeability of fungal cell membranes causing cell death. In June 2008, Pacgen announced positive results from its Phase IIb clinical trial demonstrating that PAC- 113 is effective in the treatment of oral Candidiasis and compares favourably to the efficacy demonstrated by Nystatin, a current standard of care. PAC-G31P is a small recombinant protein that is a synthetic analogue of the human cytokine called Interleukin-8 which is the key chemokine involved in neutrophil recruitment. PAC-G31P is currently being investigated in preclinical studies for its potential to treat inflammatory diseases characterized by non-beneficial neutrophil. For additional information, please visit www.pacgenbiopharm.com.
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Forward looking Statements
Certain statements included in this press release may be considered forward-looking. Statements relating to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments constitute forward-looking statements. All forward-looking statements are based on Pacgen’s current beliefs and expectations as well as assumptions relating to the successful completion of its clinical trials and pre-clinical studies, the time and process required to obtain regulatory approval for commercialization of its product, the ability of Pacgen to raise additional capital in future on favourable terms, the impact of competitive products and pricing in the market, new product development, and the successful and timely completion of corporate collaborations or licensing arrangements for its research programs. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. Such factors include, among others, our stage of development, lack of product revenues, additional capital requirements, risk associated with completion of clinical trials and obtaining regulatory approval, dependence on collaborative partners, and our ability to protect our intellectual property.
Wherever possible, words such as “anticipate”, “believe”, “expect”, “may”, “could”, “will”, “potential”, “intend”, “estimate”, “should”, “plan”, “predict”, “project” or the negative or other variations of such expressions reflect Pacgen’s current beliefs and assumptions and are based on the information currently available to Pacgen. Certain risks and uncertainties, including those risk factors identified by Pacgen in its annual management’s discussion and analysis dated July 19, 2010 and annual information form dated July 31, 2008, may cause our actual results, level of activity, performance or achievements to differ materially from those implied by forward looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made only as of the date of this press release. Pacgen disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For all forward-looking statements, Pacgen claims the safe harbour for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
For further information contact:
Yiu Chung Lee
Chief Executive Officer
Chief Financial Officer