Lorus Therapeutics Reports Year-End Results.Business Editors TORONTO--(BUSINESS WIRE)--July 20, 2001 Lorus Therapeutics Inc. ("Lorus")(OTCBB OTCBB See OTC Bulletin Board (OTCBB). :LORFF)(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :LOR LOR Letter Of Reprimand (military) LoR Lord of the Rings (J.R.R. Tolkien) LOR Learning Object Repository LOR Linux.Org. .) today reported financial results for the twelve months ended May 31, 2001. Unless specified otherwise, all amounts are in Canadian dollars. For the year ended May 31, 2001, Lorus incurred a loss of $15,213,000 ($0.11 per share) compared to a loss of $8,599,000 ($0.10 per share) for the previous fiscal year. Operating cash requirements for the year ended May 31, 2001 were $9,662,000 compared to $5,362,000 for the previous fiscal year. Current year results include the operating costs operating costs npl → gastos mpl operacionales of our research facilities and antisense antisense, DNA or RNA manipulated in a laboratory so that its components (nucleotides) form a complementary copy of normal, or "sense," messenger RNA (mRNA; see nucleic acid). drug development programs, and the non-cash amortization of goodwill and acquired research and development for twelve months compared to seven months in the previous year. These expenses relate to the operations of GeneSense Technologies Inc. acquired in late October 1999. Research and development expenses for the year ended May 31, 2001 increased to $9,797,000 from $4,244,000 in the prior year. The increase is due mainly to the cost of antisense drug development programs, the operating costs of our research facilities and the amortization of acquired research and development assets for twelve months compared to seven months in the previous fiscal year. Program expenditures for year ended May 31, 2001 include manufacturing, regulatory and trial preparation costs for the Virulizin Phase III clinical trial Noun 1. phase III clinical trial - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the for the treatment of pancreatic cancer pancreatic cancer Malignant tumour of the pancreas. Risk factors include smoking, a diet high in fat, exposure to certain industrial products, and diseases such as diabetes and chronic pancreatitis. Pancreatic cancer is more common in men. patients, and costs to advance the antisense development program including drug costs to support the GTI-2040 Phase II program in renal and colorectal cancers colorectal cancer Malignant tumour of the large intestine (colon) or rectum. Risk factors include age (after age 50), family history of colorectal cancer, chronic inflammatory bowel diseases, benign polyps, physical inactivity, and a diet high in fat. and the GTI-2501 Phase I clinical trial 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 . General and administrative expenses for the year ended May 31, 2001 were $6,414,000 compared to $3,652,000 for the previous fiscal year. The current year results include a full year of administration costs related to GeneSense, higher intellectual property costs, and increased corporate development and licensing activities. Depreciation and amortization expenses for the year ended May 31, 2001 increased to $1,903,000 from $1,245,000 in the prior year. The increase was due mainly to the amortization of goodwill established on the acquisition of GeneSense for twelve months in fiscal 2001 compared to only seven months in the previous fiscal year. Interest income increased to $2,901,000 for the year ended May 31, 2001 compared to $542,000 for the prior year due to a significantly higher average cash and short-term investment balance in fiscal 2001. As at May 31, 2001, Lorus has cash and short-term investments of $48,818,000. "Lorus continued making strides in all areas of the business, from our clinical trial program to strategic business alliances and regulatory achievements," commented Dr. Jim A. Wright, president. "GTI-2501 is the third Lorus product to enter clinical trials and the Phase II program for GTI-2040 is well underway. Lorus was awarded Orphan Drug orphan drug, drug developed under the U.S. Orphan Drug Act (1983) to treat a disease that affects fewer than 200,000 people in the United States. The orphan drug law offers tax breaks and a seven-year monopoly on drug sales to induce companies to undertake the Status for Virulizin in the U.S., a long term supply agreement for the manufacturing of Virulizin was secured and preparation has begun for its Phase III clinical trial program. We strengthened our management team and board of directors with experienced people in key areas of the business and have furthered our discussions with potential partners who will add value to our company and products." YEAR 2001 HIGHLIGHTS -- The GTI-2040 Phase I clinical trial reached its clinical endpoints of safety and tolerability, and the recommended Phase II dose was identified. Plans for Phase II clinical trials 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 in renal and colorectal cancer patients are underway. -- GTI-2501 completed toxicology toxicology, study of poisons, or toxins, from the standpoint of detection, isolation, identification, and determination of their effects on the human body. Toxicology may be considered the branch of pharmacology devoted to the study of the poisonous effects of drugs. studies and received FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. approval for a Phase I clinical trial. -- Antisense research collaboration was established with AVI BioPharma AVI BioPharma Inc. is a medical research and drug development company with corporate offices in Portland, Oregon, United States, and laboratories in Corvallis, Oregon. It was incorporated in 1980. Inc. and an antisense strategic drug supply alliance was formed. -- Virulizin demonstrated positive pre-clinical anti-tumor activity in human breast cancer tumors in mouse models. -- Virulizin was awarded Orphan Drug Status by the FDA in the U.S. and a contract manufacturer was secured in preparation for the Phase III clinical trial program. -- Management expertise was added in key clinical and regulatory areas, and two new directors joined the Board bringing U.S. and Canadian pharmaceutical and biotech expertise. SUBSEQUENT TO YEAR-END -- First patients treated in Phase I clinical trial of GTI-2501 "In the year ahead, the company will have three products in the clinic and it will continue to build shareholder value through the successful implementation of its clinical development strategies," continued Dr. Wright. "The contributions of our staff and management have enabled us to successfully move forward with our business plan, and strengthen our leadership role in the development of efficacious ef·fi·ca·cious adj. Producing or capable of producing a desired effect. See Synonyms at effective. [From Latin effic and well tolerated drugs for the treatment of cancer."
Consolidated Statements of Loss
For the years ended May 31, 2001 and 2000
(Thousands of Canadian dollars except share data) 2001 2000
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EXPENSES
Research and development $ 9,797 $ 4,244
General and administrative 6,414 3,652
Depreciation and amortization 1,903 1,245
Interest income (2,901) (542)
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Loss for the year $ 15,213 $ 8,599
Loss per common share $ 0.11 $ 0.10
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Weighted average number of
common shares outstanding (000's) 140,776 86,121
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About Lorus: Lorus Therapeutics Inc. is a biopharmaceutical company specialising in the research, development and commercialisation of pharmaceutical products and technologies for the management of cancer. Lorus' goal is to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. its research, pre-clinical, clinical and regulatory expertise by developing new drug candidates that can be used, either alone, or in combination, to successfully manage cancer. Through its own discovery efforts and an active acquisition and in-licensing program, Lorus is building a portfolio of promising anti-cancer drugs. Late-stage clinical developments and marketing will be done in cooperation with strategic pharmaceutical partners. Founded in 1986, Lorus Therapeutics Inc. is a public company listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol LOR, and on the OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB exchange under the symbol LORFF. Except for historical information, this press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, and other risks detailed from time-to-time in the Company's ongoing quarterly filings, annual reports and 40-F filings. Lorus Therapeutics Inc.'s press releases are available through the Company's Internet site: http://www.lorusthera.com. |
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