April 30, 2009
VANCOUVER, Canada— iCo Therapeutics Inc. (TSX-V: ICO) today reported financial results for the year ended December 31, 2008. Amounts, unless specified otherwise, are expressed in Canadian dollars and in accordance with Canadian Generally Accepted Accounting Principles (Canadian GAAP).
“I am very pleased with the progress we have achieved in building our pipeline and strengthening our lead programs in 2008”, stated Andrew Rae, iCo’s President & CEO. “2008 was a challenging year for many companies, and I am particularly pleased to have completed a financing in the current environment.”
2008 Operating Highlights:
- In January of 2008 began trading on the TSX Venture exchange having completed a reverse takeover of Beanstalk Capital Ltd. a capital pool company;
- Completed a $1,140,450 equity financing;
- Elected Noel Hall and Chris Fibiger to our board of directors.
- In February 2008, began our Phase I clinical trial. Two cohorts were treated at escalating dosing levels. Both cohorts showed no drug related adverse affects;
- Released interim safety and efficacy data which was presented at two influential international conferences by two of our clinical investigators.
- Exercised our option to license iCo-009 with UBC;
- Held a pre-IND meeting with the FDA to discuss Phase I clinical protocols;
- Completed pre-clinical studies demonstrating promising results in three animal models – two fungal & one parasitic;
- Published results of our studies in several peer reviewed journals;
- Applied for and received additional government funding to support further pre-clinical studies;
- Presented a poster at the American Association of Pharmaceutical Scientist (AAPS) Meeting in Atlanta, Georgia;
- Collaborated with a Gates-grantee organization with respect to studies in Visceral Leishmaniasis.
Summary Fiscal 2008 Results
We incurred a net and comprehensive loss of $2,742,374 for the year ended December 31, 2008 compared to a net and comprehensive loss of $5,187,359 for the year ended 2007, representing a decrease of approximately $ 2,444,985. The decrease in our net and comprehensive loss was principally caused by a decrease in research and development expenses for the year ended December 31, 2008.
Interest income for the year ended December 31, 2008 was $30,529, compared to $40,254 for the year ended December 31, 2007, resulting in a decrease of $9,725. The lower interest income earned in the year ending December 31, 2008, as compared to the same periods in 2007 was a result of smaller cash and short term investments balances held in our treasury in 2008.
Research and development expenses were $1,421,258 for the year ended December 31, 2008 compared to $3,714,665 for the year ended December 31, 2007, representing a decrease of $2,293,407. Research and development expenses for the year ending December 31, 2008 were lower than the same period for the previous year primarily due to manufacturing expenses that were undertaken for iCo-008 during the first half of 2007 that were not required in 2008.
For the year ended December 31, 2008 general and administrative expenses were $995,297 compared to $963,695 for the year ending December 31, 2007, representing an increase of $31,602. This increase in the year ending December 31, 2008 compared to the year ending December 31, 2007 were attributable to increased salaries but were offset by a decrease in professional fees.
Amortization for the year ended December 31, 2008 was $115,430 compared to amortization of $114,864 for the year ended December 31, 2007.
Stock based compensation for the year ended December 31, 2008 was $179,968 compared to $203,883 for the year ended December 31, 2007.
Liquidity and Outstanding Share Capital
As at December 31, 2008, we had cash and cash equivalents of $620,276 compared to $1,889,233 as at December 31, 2007. Surplus cash is invested in redeemable, short-term money market investments. As at December 31, 2008, the Company had working capital of $234,196 compared to $1,608,921 as at December 31, 2007. We anticipate that the combination of our current cash on hand, and the February 9, 2009 financing, will be sufficient to fund operations into the fourth quarter of 2009, at which time we will need to obtain additional proceeds through equity or debt financing or by selling or licensing our technology for cash proceeds.
As at April 27 2008, we had an unlimited number of authorized common shares with 28,217,450 common shares issued and outstanding.
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.