Champions Biotechnology Reports Fiscal 2009 Third Quarter Financial Results
18 March 2009 - 11:22PM
PR Newswire (US)
BALTIMORE, March 18 /PRNewswire-FirstCall/ -- Champions
Biotechnology, Inc. (OTC:CSBR) (BULLETIN BOARD: CSBR) , a company
engaged in the development of advanced preclinical platforms and
tumor specific data to enhance the value of oncology drugs, reports
its financial results for the third fiscal quarter ended January
31, 2009. Full details of the Company's financial results are
available in the Company's Form 10-Q at
http://www.championsbiotechnology.com/. Total revenues for the
third quarter of fiscal 2009 increased to $1,052,175, compared to
$624,940 for the same period in 2008. The Company derived its
revenues from its Personalized Oncology and its Preclinical
eValuation businesses. Total operating expenses for the third
fiscal quarter of 2009 were $1,696,457 compared to $319,998 for the
same period of last year. Third quarter 2009 operating expenses
included the following: Research and development expenses were
$435,274, compared to $0.00 for the comparable prior period in
fiscal 2008. The increase of $435,274 was primarily related to the
Company's effort to build its preclinical platform and drug
pipeline and develop its drug, SG410. In addition, the Company
incurred expenses related to its business development activities
and personnel. The costs of personalized oncology and preclinical
eValuation services were $898,777 for the quarter ended January 31,
2009, as compared to $201,222 in the quarter ended January 31,
2008. The increase in personalized oncology costs relates mainly to
the overall growth in the business and a $250,000 payment to fund
the cost of a Personalized Vaccine(TM) program the Company entered
into during the current quarter. The Personalized Vaccine program
is structured such that the cost to establish the program is
incurred primarily in the third and fourth quarter; if the program
successfully continues in fiscal 2010 it is anticipated to generate
a profit for the Company. During the quarter the Champions also
entered into an agreement with a pharmaceutical company whereby
Champions reduced its overall gross margin on a preclinical
eValuations contract in exchange for a royalty agreement on future
sales for a specific indication of the compound being tested.
General and administrative expenses in the third quarter of 2009
were $362,406, compared to $118,776 in the comparable quarter of
2008, an increase of $243,630. Expenses increased as the Company
began to incur the cost of building up its internal operational
infrastructure including the addition of personnel, consultants and
costs associated with being a public company. The Company reported
a net loss of $623,234 or $0.02 per basic share for the third
quarter of fiscal 2009, as compared to net income of $311,006 or
$0.01 per basic and diluted shares in the third fiscal quarter of
2008. The Company's cash position on January 31, 2009, was
$2,624,866. The Company's working capital as of January 31, 2009,
was $2,025,319. Not included in the cash balance above is a $1.0
million Certificate of Deposit that the Company purchased in June
2008. For the nine-month period ended January 31, 2009, revenues
were $2,769,464 compared to $874,940 for the same period in 2008.
Total operating expenses were $3,858,647, compared to $716,986 for
2008, and the Company reported a net loss of $1,022,306 or $0.03
per basic and diluted shares, as compared to net income of $174,011
or $0.01 per basic and diluted shares for 2008. The Company began
operations as a biotechnology company in May 2007. Accordingly, the
nine-month results for 2008 do not reflect a full nine-month
period. Furthermore, the Company began to generate revenue from its
Preclinical eValuation business in the fiscal quarter ended July
31, 2008. "Our growth in revenues helps offset our early stage
expenses. As a result, we have ended the quarter at $3.6 million in
cash and Certificates of Deposit vs. $3.7 million at April 30,
2008. Our revenue generation reduces our risk and provides a
significant part of the capital required to grow high potential
initiatives. We believe that this strategy gives us an advantage in
this economic climate, while many in the biotech industry are more
adversely affected by the financial crisis," stated Douglas
Burkett, Ph.D., President of Champions Biotechnology, Inc.
"Although our third quarter revenues of $1,052,175 were just
slightly higher than our second quarter revenue of $1,044,172, the
Company's deferred revenue in the third quarter climbed to
$1,361,110 compared to $461,838 for our second quarter ended
October 31, 2008. "We intend to grow revenue from our Personalized
Oncology and Preclinical eValuation businesses as we build our own
drug pipeline," continued Dr. Burkett. "During the third quarter we
identified oncology drug candidates from academic centers,
pharmaceutical and biotech companies and began negotiations with
license holders. We intend to leverage our predictive platform to
screen drug candidates and acquire, or partner to develop, drug
candidates that demonstrate efficacy in our Biomerk Tumorgraft
models. The Company plans to partner with pharmaceutical or
biotechnology companies to advance its drugs through remaining
preclinical and clinical trials." Highlights of the Company's third
quarter ending January 31, 2009: 1. The Company continued to expand
its preclinical eValuation platform through additional
collaborations to acquire tumor samples and by implanting,
propagating and storing banks of Biomerk Tumorgrafts(TM) for use in
future analysis of oncology drugs. 2. The growing platform of
Biomerk Tumorgrafts generated growing interest from large and small
pharmaceutical and biotechnology companies for the use of the
Company's technology to evaluate compounds. This effort resulted in
contracts including two with Centocor, Inc. 3. The Company entered
into a royalty agreement with Concordia Pharmaceuticals to realize
the potential upside value of Salirasib, Concordia's novel compound
for the treatment of cancer, in combination with another targeted
drug. 4. The Company established collaboration with Gradalis Inc.
and Mary Crowley Medical Research Center to develop personalized
vaccines for cancer patients through the use of the Biomerk
Tumorgraft technology. 5. The Company grew the number of procedures
within its Personalized Oncology business by 33% and has initiated
processes to make this service more readily available in key
international markets. 6. The Company continued to expand
initiatives to develop its own drug pipeline. During the quarter
numerous candidates were identified, due-diligence was performed,
and the Company is currently in negotiations for acquisition or
co-development of a number of agents. For more information
regarding Champions Biotechnology please visit our web site at
http://www.championsbiotechnology.com/. About Champions
Biotechnology, Inc. Champions Biotechnology, Inc. is engaged in the
development of advanced preclinical platforms and predictive tumor
specific data to enhance and accelerate the value of oncology
drugs. The Company's Preclinical Platform is a novel approach based
upon the implantation of primary human tumors in immune deficient
mice followed by propagation of the resulting engraftments (Biomerk
Tumorgrafts(TM)) in a manner that preserves the biological
characteristics of the original human tumor. Early studies suggest
that these Tumorgrafts closely reflect human cancer biology and
their response to drugs is predictive of clinical outcomes in
cancer patients. Champions Biotechnology leverages its preclinical
platform to evaluate drug candidates and to develop a portfolio of
novel therapeutic candidates through pre-clinical trials. As drugs
progress through this early stage of development, the Company plans
to sell, partner or license them to pharmaceutical and/or
biotechnology companies, as appropriate. The Company also offers
its predictive preclinical platform and tumor specific data to
physicians for personalized patient care and to Companies for
evaluation of oncology drugs in models that integrate prognostic
testing with biomarker discovery. Champions Biotechnology is
dedicated to enhancing preclinical development tools, accelerating
development and valuation of oncology drugs, and advancing
personalized treatment with a goal to improve the lives of cancer
patients globally. This press release contains "forward-looking
statements" (within the meaning of the Private Securities
Litigation Act of 1995) that inherently involve risk and
uncertainties. Champions Biotechnology generally uses words such as
"believe," "may," "could," "will," "intend," "expect,"
"anticipate," "plan," and similar expressions to identify
forward-looking statements. One should not place undue reliance on
these forward-looking statements. The Company's actual results
could differ materially from those anticipated in the
forward-looking statements for many unforeseen factors. See
Champions Biotechnology's Form 10-KSB for the fiscal year ended
April 30, 2008 for a discussion of such risks, uncertainties and
other factors. Although the Company believes the expectations
reflected in the forward-looking statements are reasonable, they
relate only to events as of the date on which the statements are
made, and Champions Biotechnology's future results, levels of
activity, performance or achievements may not meet these
expectations. The Company does not intend to update any of the
forward-looking statements after the date of this press release to
conform these statements to actual results or to changes in
Champions Biotechnology's expectations, except as required by law.
CHAMPIONS BIOTECHNOLOGY, INC. WEB SITE:
http://www.championsbiotechnology.com/ For more news and
information on Champions Biotechnology, Inc., please visit
http://www.irgnews.com/coi/CSBR where you can find the CEO's video,
a fact sheet on the company, investor presentations, and more.
DATASOURCE: Champions Biotechnology, Inc. CONTACT: James Carbonara,
Susan Morgenbesser or Janet Vasquez, +1-212-825-3210, all of The
Investor Relations Group, Inc. for Champions Biotechnology Web
Site: http://www.championsbiotechnology.com/
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