FOR: PROCYON BIOPHARMA INC.
CDNX SYMBOL: PBP
FEBRUARY 24, 2000
Procyon Announces Second Quarter Results: Advances in Financing,
Product Development and Out-Licensing
MONTREAL, QUEBEC--Procyon BioPharma Inc. ("Procyon") announced its
results for the second quarter ended, December 31, 1999 indicating
advances in financing, product development and out-licensing.
Mr. Hans J. Mader, Procyon's President and CEO, indicated that the
Company was now fully operational in Quebec and had completed the
consolidation of its offices and laboratories in the Montreal
area, from previous locations in London, Ontario, and Boston,
Massachusetts.
$3.5 Million in Additional Capital
During the quarter, Procyon completed two phases of a private
placement totalling $3,000,000. This placement was subscribed by
directors, employees, shareholders and new investors including
T2C2 and Innovatech du Grand Montreal, key investment institutions
in Quebec's financial community. Prior to the end of the quarter,
Yorkton Securities of Calgary also exercised its option to acquire
100,000 additional shares of Procyon, and subsequently exercised
an option for 200,000 more in January, 2000. Following the close
of the quarter, directors, officers and consultants also exercised
their options raising approximately $500,000 for the Company.
Development Continues on Anti-Cancer Technology Platforms
Procyon continued to work towards completion of the pre-clinical
studies on the PSP94 lead candidate targeting therapy for hormone
refractory prostate cancer. The pre-clinical studies are expected
to confirm the efficacy of the PSP94 therapeutic as an anti-tumor
agent. The Company expects to file for the IND (Investigational
New Drug) submission with the regulatory agencies by the third
quarter of 2000.
Procyon is also vigorously continuing its activity in the ANA
(Antinuclear Autoantibody) technology. Company scientists have
successfully labeled the previously isolated single chain fragment
with a radioactive tag, allowing for the possibility of utilizing
the labelled fragment for imaging of cancer sites in the body. In
addition, research continues in the development of the lead
therapeutic product for pre-clinical and clinical trials.
Additional patent applications are also being prepared on the ANA
technology.
Negotiations Active for Partnering of Late-stage Products
The Company was very actively pursuing negotiations with potential
partners for the out-licensing of FIBROSTAT(TM) during the
quarter, and has finalized an agreement for Canada. FIBROSTAT(TM)
is Procyon's product for the management of scars resulting from
surgery and/or burns and for potential use in a variety of
dermatoses. The Company is also in serious negotiations for other
jurisdictions.
The Company also continues its focus on the out-licensing of its
other late-stage technology, COLOPATH(TM), for the screening of
colorectal pathology, including cancer. The product is currently
registered in Canada as a Class II device for monitoring of
patients with colorectal cancer. Clinical trials are currently
underway in British Columbia, to assess the utility of
COLOPATH(TM) in general screening of normal populations who have
no obvious symptoms, and who may be diagnosed with very
early-stage disease using the highly sensitive COLOPATH(TM) test.
The Company continues to maintain its patent strategy for the
technology and was recently awarded an Allowance by the European
Patent Agency for COLOPATH(TM).
The Company has also embarked upon an active program of assessing
other technologies for in-licensing that potentially add value and
are synergistic with the Company's capabilities in cancer R & D.
Senior Management Appointments and Changes to the Board of
Directors
With the re-location to Montreal, the Company has seen the need to
further strengthen its management team and advisors. Dr. Naveen
Anand was appointed Vice-President for Business Development and
Licensing. Dr. Anand was formerly with Pasteur Merieux
Connaught.
Procyon has also seen changes at the level of its Board of
Directors. Mr. William Ron McMahan, President and CEO of Oxbow
Equities, withdrew due to other commitments and Dr. Bernard
Coupal, President and CEO of the Montreal-based venture capital
firm, T2C2, joined the Board, representing Innovatech du Grand
Montreal. Both T2C2 and Innovatech are investors in the Company.
Financial Highlights
For the six months ended December 31, 1999, Procyon incurred a net
loss of $1,740,069 compared to $1,270,048 for the same period in
1998. The increased loss is a result of costs related to the move
to Montreal as well as the Company's increased research and
development efforts.
Procyon BioPharma Inc. is a publicly listed, biopharmaceutical
company focused principally on advancing two powerful platform
technologies that have the potential to diagnose and treat 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. In
addition, the estimation of PSP94 levels in prostate cancer
patients may have prognostic and diagnostic applications. Procyon
also has two late-stage products: FIBROSTAT(TM), a topical cream
for the management of newly formed scars following surgery or
burns and COLOPATH(TM), a rapid, non-invasive screening test for
colorectal cancer.
Procyon's shares trade on the CDNX under the ticker symbol, PBP.
The CDNX has neither approved nor disapproved the information
contained in this release.
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