April 28, 2008
VANCOUVER, Canada— iCo Therapeutics Inc. (TSX-V: ICO) today reported financial results for the year ended December 31, 2007. Amounts, unless specified otherwise, are expressed in Canadian dollars and in accordance with Canadian Generally Accepted Accounting Principles (Canadian GAAP).
“2007 was an important year for iCo”, stated Andrew Rae, iCo’s President & CEO. “We expanded and matured our product portfolio to reflect our risk-mitigating strategy, and the company is now focused on enhancing the value of iCo’s existing therapeutic assets for our shareholders.”
2007 Operating Highlights
- iCo initiated a Phase I clinical trial for iCo-007, a second-generation antisense candidate for diabetic macular edema.
- iCo completed a reverse takeover transaction (“RTO”) with Beanstalk Capital Ltd., taking iCo public on the TSX-Venture exchange.
- iCo obtained an exclusive option on iCo-009, an oral reformulation of Amphotericin B, from the University of British Columbia.
- iCo obtained an exclusive worldwide license for CAT-213, (now iCo-008), a human monoclonal antibody with Phase II clinical history, and completed a round of manufacturing of drug substance to enable further Phase II clinical studies.
Summary Fiscal 2007 Results
We recorded a net loss of $5,187,359 ($0.41 per common share) for the year ended December 31, 2007 compared to a net loss of $2,539,530 ($0.28 per common share) for fiscal 2006. The increase in net loss for fiscal 2007 compared to fiscal 2006 was primarily due to increases in both research and development expenses and general and administrative expenses as a result of increased operational activity for the company in 2007. The results of operations were in line with management’s expectations.
Interest income for the year ended December 31, 2007 was $40,254 compared to $25,102 for the year ended December 31, 2006 due to a higher surplus cash balance in 2007.
Research and development expenditures were $3,714,665 for fiscal 2007, compared to $1,760,011 for fiscal 2006. The increase in research and development expenses was largely attributable to increased costs relating to consultants and contract research organization expenses as iCo-007 entered into a Phase I clinical trial; and consultant and contract manufacturing expenses related to the manufacture of iCo-008 drug product in preparation for a Phase II clinical trial. General and administration expenses increased to $963,695 in fiscal 2007 from $513,567 in fiscal 2006. This increase is primarily a result of significant professional fees incurred related to the Company’s initial public offering attempt in the first half of 2007 and the RTO completed in the fourth quarter of 2007. Amortization was $114,864 for fiscal 2007 compared to $69,068 for fiscal 2006.
Stock-based compensation increased to $203,883 for the year, as compared to $190,578 for 2006.
Liquidity and Outstanding Share Capital
As of December 31, 2007, the Company had cash, cash equivalents and short-term investments of $1,931,407. As of December 31, 2007, the Company had 17,913,181 common shares issued and outstanding and 1,531,072 common shares issuable upon the exercise of outstanding stock options at a weighted-average exercise price of $0.42 per share.
For complete financial results, please see our filings at http://www.sedar.com.
About iCo Therapeutics Inc.
iCo Therapeutics Inc. is a Vancouver-based development based company focused on in-licensing drugs with clinical history redosing or reformulating for new or expanded indications. iCo has exclusive worldwide rights to three products. iCo-007, a second generation antisense candidate licensed from Isis Pharmaceuticals, is currently in a Phase I trial in Diabetic Macular Edema patients with compelling early data. iCo-008 is a human monoclonal antibody targeting eotaxin-1 with Phase II clinical history, licensed from AstraZeneca/MedImmune. iCo-009 is a proprietary oral formulation of amphotericin B licensed from the University of British Columbia. To date, iCo has reported positive preclinical results for iCo-009. iCo Therapeutics trades on the TSX-Venture exchange under the symbol “ICO”. For more information, visit the company website at: http://www.icotherapeutics.com
No regulatory authority has approved or disapproved the content of this release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, 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. All forward-looking statements are based on iCo Therapeutics’ current beliefs as well as assumptions made by and information currently available to iCo Therapeutics and relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by iCo Therapeutics in its public securities filings; actual events may differ materially from current expectations. iCo Therapeutics disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.