Allelix Strengthens Neuroscience Business with Trophix Acquisition in the Third Quarter.TORONTO--(BUSINESS WIRE)--July 18, 1997--(ME, TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : AXB.) Allelix Biopharmaceuticals Inc. (TSE/ME: AXB) took a significant step in June toward becoming a worldwide leader in neuroscience neu·ro·sci·ence n. Any of the sciences, such as neuroanatomy and neurobiology, that deal with the nervous system. neuroscience the embryology, anatomy, physiology, biochemistry and pharmacology of the nervous system. drug development with the acquisition of Trophix Pharmaceuticals, Inc. of South Plainfield, New Jersey South Plainfield is a Borough in Middlesex County, New Jersey, United States. As of the United States 2000 Census, the borough population was 21,810. South Plainfield was incorporated by an Act of the New Jersey Legislature on March 10, 1926, from portions of Piscataway . Trophix will form an integral part of the Allelix neuroscience business unit, operating as Allelix Neuroscience Inc., based in New Jersey. The acquisition increases neuroscience staff by 50 percent (to 90) making it approximately the same size as the Protein Therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. business. Under a Letter of Intent, Allelix will exchange 2.5 million of its common shares plus $US 3 million in cash for 100 percent of privately-owned Trophix in a deal valued at approximately $US 23 million. Trophix shareholders, including U.S. based HealthCare Ventures, Atlas Venture Atlas Venture is an international early-stage venture capital firm that invests in communications, information technology, and life sciences companies. Atlas Venture has investing offices in Boston, London, Munich, and Paris, and its investments are evenly divided between the , Oak Investment Partners, CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously. Which past endurance sting the tender cit. - Emerson. Group and J&J Development will receive further payments of up to $US 4 million in Allelix shares upon achievement of certain clinical and business milestones. The transaction is expected to be completed by July 31, 1997, subject to stock exchange and regulatory approval and other matters. The acquisition gives Allelix critical mass in its neuroscience business, solidifies its position as an international biopharmaceutical company, accelerates Allelix product development and adds three exciting new products. The most advanced of the new products is GRI-1, a brain-selective glycine glycine (glī`sēn), organic compound, one of the 20 amino acids commonly found in animal proteins. Glycine is the only one of these amino acids that is not optically active, i.e. transporter for treating schizophrenia schizophrenia (skĭt'səfrē`nēə), group of severe mental disorders characterized by reality distortions resulting in unusual thought patterns and behaviors. and dementia expected to enter Phase I clinical testing before the end of 1997. The other two products - one being developed jointly with Janssen Pharmaceutica Janssen Pharmaceutica, is a pharmaceutical company based in Beerse, Belgium, was established in 1953 by Dr. Paul Janssen. It was created not as a subsidiary of a chemical factory but solely with the aim of conducting pharmacological research. of Belgium for neuropathic neuropathic /neu·ro·path·ic/ (-path´ik) pertaining to or characterized by neuropathy. neuropathic pertaining to disease of the nervous system. pain and the other for spinal cord injury Spinal Cord Injury Definition Spinal cord injury is damage to the spinal cord that causes loss of sensation and motor control. Description Approximately 10,000 new spinal cord injuries (SCIs) occur each year in the United States. - are expected to move to Phase I trials in 1998. Other Developments in Neuropharmaceuticals Allelix is proceeding on schedule in its migraine migraine (mī`grān), headache characterized by recurrent attacks of severe pain, usually on one side of the head. It may be preceded by flashes or spots before the eyes or a ringing in the ears, and accompanied by double vision, nausea, program and one of two candidates, ALX-0625 and ALX-0646, is expected to enter Phase I by the end of 1997 or early in 1998. A family of compounds for treating cocaine abuse continues to be evaluated at the preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. development stage under the Allelix/Pharm-Eco joint venture detailed in the Q2 report. Allelix researchers are working with the US National Institute for Drug Abuse (NIDA NIDA National Institute on Drug Abuse NIDA National Institute of Dramatic Arts (Australia) NIDA Northern Ireland Development Agency (UK) NIDA Northern Ireland Dairy Association ) in this development program and one of the candidate compounds is expected to enter Phase I clinical trials Noun 1. phase I clinical trial - a clinical trial on a few persons to determine the safety of a new drug or invasive medical device; for drugs, dosage or toxicity limits should be obtained phase I by the end of 1997 or early 1998. Under the other Allelix/Pharm-Eco program, several of a unique class of compounds have shown promise in various in-vivo models of memory and learning. The mode of action of the compounds is novel and the enhancement seen to date in such experiments not only affects memory but also appears to enhance discriminatory learning. The company is scheduled to begin formal preclinical evaluation of selected compounds later in 1997. Protein Therapeutics On schedule at the end of June, Allelix delivered to Astra AB Astra AB is a former international pharmaceutical company based in Södertälje, Sweden. Astra was formed in 1913 and merged with the British Zeneca Group in 1999 to form AstraZeneca. of Sweden, the report from the pivotal Phase II clinical trial Noun 1. phase II clinical trial - a clinical trial on more persons than in phase I; intended to evaluate the efficacy of a treatment for the condition it is intended to treat; possible side effects are monitored phase II designed to evaluate the efficacy and safety of ALX ALX Alexandria (Egyptian automobile license plate) ALX America's Learning Exchange ALX Alienware Luxury Experience (Alienware Corp. 1-11 (recombinant human parathyroid hormone parathyroid hormone or parathormone, a hormone secreted by the parathyroid glands that regulates the metabolism of calcium and phosphate in the body. ) in patients with post-menopausal osteoporosis osteoporosis (ŏs'tēō'pərō`sĭs), disorder in which the normal replenishment of old bone tissue is severely disrupted, resulting in weakened bones and increased risk of fracture; osteopenia . Under the agreement between the companies, Astra has until the end of September to review the report, after which time milestone payments and cost reimbursements will be payable to Allelix upon Astra's decision to proceed with the planned ALX1-11 clinical program. In the interim Allelix and Astra are continuing with the clinical and commercial development program, which includes evaluating options for commercial manufacturing and additional studies to demonstrate bone quality and other bone growth parameters. The Phase II trial included over 200 patients in 18 centers in Canada and the United States The United States and Canada share a unique legal relationship. U.S. law looks northward with a mixture of optimism and cooperation, viewing Canada as an integral part of U.S. economic and environmental policy. and is the first clinical trial of this scope to evaluate parathyroid hormone for the treatment of patients diagnosed with post-menopausal osteoporosis. This signals completion of a significant element in the company's most advanced product development program. During the quarter, Dr. Daniel Drucker reported in a major scientific journal, Nature Biotechnology Nature Biotechnology (Nat Biotechnol; ISSN 1087-0156) is an academic journal covering the science and business of biotechnology. Nature Biotechnology is a continuation of Bio/technology (Biotechnology (NY) , that researchers at Allelix and The Toronto Hospital have determined that analogs of Glucagon-like Peptide 2 (GLP-2) are 3-5 times more powerful than the natural hormone. The intestinal growth factor GLP-2 is found in all species but its relative activity depends on the concentration of circulating intact GLP-2. The joint scientific team discovered that a key enzyme, called DDP-IV, can degrade TO DEGRADE, DEGRADING. To, sink or lower a person in the estimation of the public. 2. As a man's character is of great importance to him, and it is his interest to retain the good opinion of all mankind, when he is a witness, he cannot be compelled to disclose and inactivate in·ac·ti·vate v. 1. To render nonfunctional. 2. To make quiescent. in·ac  ti·va GLP-2. The Nature Biotechnology
paper goes on to describe how Allelix researchers designed a series of
synthetic GLP-2 analogs and tested their resistance to DDP-IV enzyme
degradation. Dr. Drucker's team then also demonstrated these
analogs to be a more powerful stimulator of intestinal growth than the
naturally occurring hormone. Allelix expects to begin a Phase I
clinical trial in the first half of 1998 for the first therapeutic
indication for ALX-0600, its proprietary analog of GLP-2 developed in
collaboration with Dr. Drucker.Q3 Financial highlights Allelix today reported a loss of $3.4 million ($0.22 per share) for the third quarter ended May 31, 1997, compared with a loss of $3.0 million ($0.25 per share) in the comparable quarter of the prior year. Revenue for the period was $3.7 million, compared with $3.5 million in the third quarter of 1996. Cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has available to fund development programs at the end of the quarter totaled $60.1 million. Allelix Biopharmaceuticals Inc. is a Canadian company that discovers and develops innovative biopharmaceuticals. Products are commercialized internationally in partnership with established pharmaceutical companies such as Astra AB, Eli Lilly Eli Lilly can refer to:
preclinical phase, preclinical trial for Short Bowel Syndrome Short bowel syndrome A condition in which the bowel is not as long as normal, either because of surgery or because of a congenital defect. Because the bowel has less surface area to absorb nutrients, it can result in malabsorption syndrome. and other gastrointestinal disorders Noun 1. gastrointestinal disorder - illness caused by poisonous or contaminated food food poisoning illness, sickness, unwellness, malady - impairment of normal physiological function affecting part or all of an organism ; and ALX-0625 and ALX-0646 in preclinical evaluation for the treatment of migraine headaches Migraine Headache Definition Migraine is a type of headache marked by severe head pain lasting several hours or more. Description Migraine is an intense and often debilitating type of headache. . Allelix R&D programs focus on developing protein therapeutics, neuropharmaceuticals and antiviral antiviral /an·ti·vi·ral/ (-vi´ral) destroying viruses or suppressing their replication, or an agent that so acts. an·ti·vi·ral adj. therapeutics. -0-
ALLELIX BIOPHARMACEUTICALS INC.
STATEMENT OF OPERATIONS AND DEFICIT
Three Months Ended May 31
1997 1996
$ $
--------- ---------
--------- ---------
Revenues:
Collaborative and
contract revenue 3,032,259 2,856,393
Interest income 643,316 631,668
--------- ---------
3,675,575 3,488,061
--------- ---------
Expenses:
Research and
development 5,642,845 5,261,605
General &
Administration 1,413,958 1,248,137
--------- ---------
7,056,803 6,509,742
--------- ---------
Loss for the period (3,381,228) (3,021,681)
Deficit,
beginning of period (51,747,878) (43,657,539)
Share issue costs (1,356,213)
---------- ---------
Deficit, end of period (55,129,106) (48,035,433)
---------- ---------
---------- ---------
Loss per share (0.22) (0.25)
---------- ---------
---------- ---------
Shares used in calculating
per share data 15,160,907 12,005,584
---------- ----------
---------- ----------
Comparative figures have been reclassified.
ALLELIX BIOPHARMACEUTICALS INC.
STATEMENT OF CHANGES IN FINANCIAL POSITION
Three Months Ended May 31
1997 1996
$ $
----------- ----------
Operations:
Loss for the period (3,381,228) (3,021,681)
Depreciation and
amortization 333,881 166,312
Net change in
non-cash working 131,233 (509,752)
capital balances
----------- -----------
(2,916,114) (3,365,121)
----------- -----------
Investing activities:
Purchase of fixed assets (438,779) (493,530)
Purchase of technology
rights (2,474,680)
----------- -----------
(2,913,459) (493,530)
----------- -----------
Financing activities:
Proceeds from issuance
of share capital 1,262,444 22,452,781
Proceeds from issuance
of special warrants (22,400,000)
Proceeds from issuance
of warrants
Increase in capital
lease obligations 552,619
Payment of capital
lease obligations (144,324) (108,740)
Special warrant/share
issue costs (60,034)
---------- -----------
1,670,739 (115,993)
---------- -----------
Increase/(decrease) in
cash during the period (4,158,834) (3,974,644)
Cash and marketable
securities,
beginning of period 64,234,979 41,531,912
---------- ----------
Cash and marketable
securities, end
of period 60,076,145 37,557,268
---------- ----------
---------- ----------
ALLELIX BIOPHARMACEUTICALS INC.
STATEMENT OF OPERATIONS AND DEFICIT
Nine Months Ended May 31
1997 1996
$ $
--------- ---------
--------- ---------
Revenues:
Collaborative and
contract revenue 11,777,336 7,560,750
Interest income 1,767,071 1,484,915
--------- ---------
13,544,407 9,045,665
Expenses:
Research and
development 18,161,718 15,584,566
General &
Administration 4,483,839 4,022,685
--------- ---------
22,645,557 19,607,251
Loss for the period (9,101,150) (10,561,586)
Deficit, beginning
of period (44,252,375) (36,117,634)
Share issue costs (1,775,581) (1,356,213)
Deficit,
end of period (55,129,106) (48,035,433)
--------- ---------
--------- ---------
Loss per share
(0.66) (0.92)
--------- ---------
--------- ---------
Shares used in calculating per
share data 13,734,666 11,443,047
--------- ---------
--------- ---------
Comparative figures have been reclassified.
ALLELIX BIOPHARMACEUTICALS INC. STATEMENT OF
CHANGES IN FINANCIAL POSITION
Nine Months Ended May 31
1997 1996
$ $
--------- ---------
--------- ---------
Operations:
Loss for the period (9,101,150) (10,561,586)
Depreciation and
amortization 783,786 458,643
Net change in
non-cash working (275,550) 721,591
capital balances
--------- ---------
(8,592,914) (9,381,352)
--------- ---------
Investing activities:
Purchase of fixed
assets (738,588) (724,829)
Purchase of technology
rights (4,554,991)
--------- ---------
(5,293,579) (724,829)
--------- ---------
Financing activities:
Proceeds from issuance
of share capital 34,016,760 22,829,417
Proceeds from issuance
of special warrants
Proceeds from issuance of
warrants 480,000 225,226
Increase in capital lease
obligations 774,883 262,631
Payment of capital lease
obligations (417,084) (311,334)
Special warrant/share
issue costs (1,775,581) (1,356,214)
--------- ---------
33,078,978 21,649,726
--------- ---------
Increase/(decrease) in
cash during the period 19,192,485 11,543,545
Cash and marketable
securities, beginning
of period 40,883,660 26,013,723
Cash and marketable
securities, end of
period 60,076,145 37,557,268
--------- ---------
--------- ---------
CONTACT: Allelix Biopharmaceuticals Inc. Jerry Ormiston, 905/677-0831 Ext. 223 905/677-9595 (FAX) E-mail: jormis@allelix.com |
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