CANADIAN CORPORATE NEWS
Date
11/09/99
Company
PROCYON BIOPHARMA INC.
Title
Annual General Meeting and First Quarter Results: Procyon President Describes
Strategy for Future Development
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: Procyon BioPharma Inc.
ASE SYMBOL: PBP
November 9, 1999
Annual General Meeting and First Quarter Results: Procyon President Describes
Strategy for Future Development
MONTREAL, QUEBEC--Procyon BioPharma Inc (Procyon) held its first annual general
meeting today in Montreal following its recent announcement to move its
operations here from London, Ontario. President and CEO, Hans J. M?der
outlined the Company's strategy for growth over the next three years and
indicated that Procyon had made good progress in completing its private
placement to cover on-going research and operating costs. The Company has
already received the first million of its proposed $3 million private placement
and expects to close the balance of the financing later this month.
"The move to Montreal is central to our growth plans," said Mr. M?der. "The
transfer of our research activities to the National Research Council's
Biotechnology Research Institute will allow interaction between our scientists
and others at the Institute. We are also looking at collaborating with other
biopharmaceutical firms in Montreal and at improving the management of our burn
rate by taking advantage of the economic incentives provided by the Quebec
Government for research based firms," he added.
Mr. M?der also indicated that Procyon plans to finalize arrangements in the
near future to out-license FIBROSTAT(TM) to a commercial partner for the
completion of its development and commercialization. FIBROSTAT(TM), one of
Procyon's late-stage products, is a topical cream for the management of scars
following surgery or burns. The Company also intends to out-license another
late-stage product, COLOPATH(TM) in the spring of the year 2000. COLOPATH(TM)
is a highly sensitive, rapid and minimally invasive test under development for
the detection of colorectal cancer.
For Procyon's two key anti-cancer proprietary technology platforms, Mr. M?der
emphasized that the Company's R&D focus will be to obtain data during the year
2000 on the potency of these technologies in man. PSP94, a naturally occurring
human protein produced mainly in the prostate, has been shown to reduce human
prostate tumor growth by up to 50 % in experimental animal models. Clinical
trials in humans, using a PSP94 therapeutic candidate, are slated to begin
early in the year 2000. Procyon's ANA technology is based on Antinuclear
Autoantibodies, which are naturally occurring antibodies that are believed to
be protective against a wide variety of cancers. Procyon plans to file an
Investigational New Drug (IND) application, to commence human clinical trials
using this technology, with the FDA in the United States by mid 2000.
In his presentation to shareholders, Mr. M?der also pointed out that Procyon
intends to conclude an additional round of financing in the summer of the year
2000 to provide funds for on-going operations over a three-year period.
Board and Management Changes
At the annual meeting, Procyon also announced the departure of one board
member, Mr. Arthur Porter. Procyon thanks him for his excellent contribution
to the Company during his tenure. He will be replaced by Dr. Max Link. Mr.
Hans J. M?der was also officially appointed to the Board.
Dr. Link is the former Chairman and CEO of Sandoz Pharma Ltd. and the former
CEO of Corange, Ltd. He is presently Chairman of Cell Therapeutics and Cytrx
Corporation, both NASDAQ listed companies, and is a director of a number of
other companies including Protein Design Labs and Human Genome Sciences.
At the management level, Mr. Douglas Alexander formerly Senior Vice-President
and CFO has left the Company and has been replaced by Mr. Edward Yates,
Director of Finance, Controller, Assistant Secretary and Human Resources
Manager. In addition, Mr. Christopher Hyatt, Vice-President, Intellectual
Property and General Counsel, will be leaving the Company early in the New Year
and will be replaced by Ms. Marie-Christine Bujold, Director, Intellectual
Property, General Counsel and Secretary.
Financial Results
For the first quarter ended September 30, 1999, Procyon's revenues amounted to
$18,258 compared to $35,182 for the same quarter last year. The decrease is
due to a decline in interest income.
Research and development costs rose 8 % to $312,147 compared to $289,914 for
the first quarter of 1998 while administrative costs declined 10 % to $255,395
compared to $283,630 for the same quarter last year.
The net loss for the period was $570,894 compared to $564,281 for the first
quarter of 1998. The Company recorded a $0.03 loss per share, the same as the
loss for the first quarter last year. The accumulated deficit at the close of
the period amounted to $6.95 million compared to $4.23 million at the end of
the same quarter in 1998.
/T/
PRINCIPAL FINANCIAL DATA
Three months ended Sept. 30 1999 1998
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Revenues $18,258 $35,182
Net R&D expenses $312,147 $289,914
Net loss $570,894 $564,281
Loss per share $0.03 $0.03
Deficit $6,951,593 $4,228,454
Weighted # of common
shares outstanding 20,999,969 20,999,969
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/T/
Procyon BioPharma Inc. is a publicly listed, biopharmaceutical company focused
principally on advancing two powerful platform technologies that have the
potential to treat, diagnose and prevent cancer. Procyon's Antinuclear
Autoantibodies (ANAs) bind specifically to multiple cancer cell types strongly
enhancing the immune response to cancer cells. Prostate Secretory Protein
(PSP94) is a naturally occurring human protein that has the potential to treat
prostate cancer by inhibiting abnormal prostate cell growth. Procyon's shares
trade on the Alberta Stock Exchange under the ticker symbol, PBP.
The Alberta Stock Exchange has neither approved or disapproved the information
contained in this release.
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FOR FURTHER INFORMATION PLEASE CONTACT :
Procyon BioPharma Inc.
Hans J. M?der
President and CEO
(519) 432-8486
(514) 212-6996 (cell.)
www.procyonbiopharma.com
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