VANCOUVER, Canada – iCo Therapeutics Inc. (TSX-V: ICO) today reported operational and financial results for the first quarter ending March 31, 2011. Amounts, unless specified otherwise, are expressed in Canadian dollars and in accordance with International Financial Reporting Standards (“IFRS”).
2011 Q1 Corporate Highlights
The first quarter of 2011 was marked by the following highlights:
- Completed Phase 2 clinical supply manufacturing.
- The iCo-007 program was presented at the Retinal Physician Symposium 2011 by Dr. David Boyer, principal investigator in the completed Phase I trial.
- Andrew Rae, iCo’s President and CEO, participated in the Early Stage Company Panel at the Retinal Physician Symposium 2011.
- Engaged Ora, the world’s leading independent ophthalmic product development firm, for ophthalmic clinical and regulatory guidance.
- Entered into an agreement for a $10 Million Equity Line Facility with Dutchess Capital.
- Immune Pharmaceuticals (“IMMUNE”) licensed Bertilimumab (iCo-008) for systemic uses, pursuant to an option agreement previously announced in December 2010. iCo retains worldwide exclusive rights to all ocular applications, including a number of sight-threatening diseases. Upfront consideration included US $500,000 cash, 600,000 IMMUNE shares and 200,000 IMMUNE warrants. iCo may receive US $32 million in milestone consideration for the license, plus royalties.
Q1 2011 Financial Highlights
We incurred a net and comprehensive loss of $488,934 for the three months ended March 31, 2011 compared to a net and comprehensive loss of $828,888 for the three months ended March 31 2010, representing a decrease of approximately $339,954. The decrease in our net and comprehensive loss was principally caused by higher revenues and lower research and development expenditures, professional fees and share based compensation.
Interest income for the three months ended March 31, 2010 was $5,373, compared to $6,870 for the three month period ending March 31, 2010, resulting in a decrease of $1,497.
On February 2nd, 2011, the Company received an additional payment of US$100,000 as an option extension fee from IMMUNE, in consideration for extending the option period until March 31st, 2011. The option extension fee is non refundable and is not creditable against the upfront license fee payment of US $1 million. As the option extension fee is non-refundable, it was recognized as license revenue.
Research and development expenses were $328,340 for the three months ended March 31, 2011 compared to $407,130 for the three months ended March 31, 2010, representing a decrease of $78,790. This decrease in the three months ending March 31, 2011 compared to the three months ending March 31, 2010 were attributable to lower research costs and business development expenses. Research and development expenses for the three months ended March 31, 2011 primarily consisted of salaries, consultants’ fees, research and intellectual property expenses.
For the three months ended March 31, 2011 general and administrative expenses were $227,909 compared to $236,918 for the three months ending March 31, 2010, representing a decrease of $12,009. The decreases in the three months ending March 31, 2011 compared to the three months ending March 31, 2010 were attributable to lower professional fees.
Amortization for the three months ended March 31, 2011was $29,281 compared to amortization of $29,554 for the three months ended March 31, 2010, a decrease of $273.
Foreign exchange loss for the three months ended March 31, 2011 was $2,420 compared to foreign exchange loss of $1,911 for the same period in 2010, representing an increase of $509.
Stock based compensation for the three months ended March 31, 2011was $6,357 compared to $160,245 for the three months ended March 31, 2010, a decrease of $153,888.
Liquidity and Outstanding Share Capital
As at March 31, 2011, we had cash and cash equivalents of $1,678,880 compared to $2,040,707 as at December 31, 2010. As at March 31, 2011, the Company had working capital of $1,369,982 compared to $1,823,278 as at December 31, 2010.
As at June 29, 2011, the Company had an unlimited number of authorized common shares with 41,057,301 common shares issued and outstanding.
For complete financial results, please see our filings at www.sedar.com.
International Financial Reporting Standards (“IFRS”)
Effective January 1, 2011 Canadian publicly listed entities were required to prepare their financial statements in accordance with IFRS. Due to the requirement to present comparative financial information, the effective transition date is January 1, 2010. The quarter ended March 31, 2011, is our first interim period reported under IFRS. All comparative figures have been restated to be in accordance with IFRS unless specifically noted otherwise. Our IFRS accounting policies are described in note 2 of the interim financial statements.
About iCo Therapeutics
iCo Therapeutics Inc. is a Vancouver-based reprofiling company focused on redosing or reformulating drugs with clinical history for new or expanded indications. iCo has exclusive worldwide rights to three products: iCo-007, moving into Phase 2 for the treatment of DME, iCo-008 (Bertilimumab); a product with Phase 2 clinical history to be developed for severe ocular allergies and age-related macular degeneration; and iCo-009, an oral formulation of Amphotericin B for sight and life-threatening diseases. Immune Pharmaceuticals licensed systemic rights to iCo-008 in June 2011. iCo-009 also represents a new drug delivery technology with the potential to reprofile other parenteral administered drugs to the oral route of administration. iCo was recently awarded a Gold Leaf Award as the Early Stage Company of the Year from BIOTECanada and is a Canada’s Top 10™ Competition winner. iCo trades on the TSX Venture Exchange under the symbol “ICO”. For more information, visit the Company website at: icotherapeutics.cdmail.biz.
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.