and from Canada newswire today some good news..I left the chart of earnings off
STRESSGEN BIOTECHNOLOGIES CORP. REPORTS THIRD QUARTER
RESULTS
VICTORIA, Nov. 27 /CNW/ - StressGen Biotechnologies Corp. reported today
that product revenue from its Biochemical Division increased 26% for the nine
months ended September 30, 1996 compared with the same period last year.
Richard M. Glickman, StressGen's president and chief executive officer,
said the revenue increase combined with additional equity raised during the
quarter left the Company with a cash position of $22.7 million at September
30, 1996.
``This strong financial position has enabled us to focus all our efforts
on advancing our research and development program on several fronts,''
Glickman said.
StressGen is a biotechnology company developing innovative treatments for
cancer and vaccines to prevent infectious disease. The Company's core
technology capitalizes on the special ability of stress proteins to stimulate
the immune system to recognize and fight disease.
The Company recently acquired a gene therapy technology which is proving
very successful at inhibiting tumour growth in animal models. This
technology, licensed from the Medical Research Council in the UK, is being
used to develop cancer treatments with stress protein genes. Additional
results from this program are expected to be published in a peer-reviewed
journal in 1997.
``We've had some very encouraging results this quarter,'' Glickman said.
``The findings in our cancer program are important as they provide additional
support for the initiation of the Company's Phase I clinical trials.''
StressGen expects to begin clinical trials for a cancer treatment in 1997.
In the area of infectious disease vaccines, results from StressGen's
collaboration with the National Research Council of Canada indicate that
stress proteins can work effectively in conjugate vaccine formulations, one of
the Company's key product candidates. As well, StressGen's own in-house
research has demonstrated the efficacy of stress proteins in stimulating
cytotoxic T cell responses (CTL). CTLs are specific cells used by the immune
system to fight disease. They are particularly important in helping the body
kill virus-infected cells and cancer cells.
The Company also announced that it had been granted a notice of allowance
for a Canadian patent protecting its core technology.
StressGen raised $760,000 at the beginning of the quarter when the
underwriters of a recent $20 million equity financing exercised their
over-allotment option. The syndicate, led by Nesbitt Burns Inc., was issued
160,000 common shares. The Company closed the quarter with a cash position of
$22.7 million. StressGen's average monthly cash outflow is $280,000 per
month.
Biochemical division revenues were $465,036 compared with $328,809 for
the same period last year. Research and development costs rose to $561,776
compared with $310,562 in the same quarter last year while general and
administrative costs were $362,391 compared with $217,875 for the same period
last year. The net loss for this quarter was ($484,210) versus ($411,684) in
the third quarter of 1995. All amounts are expressed in Canadian dollars. |
