Isotechnika reports second quarter 2010 financial results
Trades on Toronto Stock Exchange - (TSX:ISA)
EDMONTON, Aug. 11 /CNW/ - Isotechnika Pharma Inc. (TSX:ISA) today announced financial results for the second quarter ended June 30, 2010.
Financial Results
The Company reported a consolidated net loss of $486,000 or $0.004 per common share for the three months ended June 30, 2010, as compared to a consolidated net loss of $472,000 or $0.004 per common share for the same period in 2009. For the six months ended June 30, 2010, the consolidated net income was $310,000 or $0.002 per common share compared to a consolidated net loss of $4.60 million or $0.04 per common share for the comparable period in 2009.
The Company's financial and operational resources in the second quarter ended June 30, 2010, were focused primarily on providing the required assistance for its partner Lux Biosciences, Inc. regulatory submissions.
The Company reported income from discontinued operations of $170,000 or $0.001 per common share for the second quarter of 2010 compared to $255,000 or $0.002 per common share for the second quarter of 2009. For the six months ended June 30, 2010, the income from discontinued operations was $1.9 million or $0.014 per common share compared to $529,000 or $0.01 per common share for the comparable period in 2009. The Company reflected the diagnostic segment as discontinued operations when the Company amended its agreement with Paladin Labs Inc. (Paladin) concerning its remaining stake in the revenue stream from the Isodiagnostika business sold to Paladin on June 18, 2009.
The Company reported a net loss from continuing operations of $656,000 or $0.005 per common share for the second quarter ended June 30, 2010, compared to $727,000 or $0.006 per common share for the second quarter ended June 30, 2010. For the six months ended June 30, 2010, the net loss from continuing operations was $1.59 million or $0.012 per common share compared to a net loss from continuing operations of $5.13 million or $0.05 per common share for the comparable period in 2009.
Revenue from continuing operations increased to $1.49 million for the second quarter of 2010, compared to $156,000 for the same period in 2009. The Company recorded revenue from continuing operations of $2.95 million for the six months ended June 30, 2010, as compared to $413,000 for the same period in 2009.
Research and development expenditures decreased to $1.02 million in the second quarter of 2010, compared to $1.49 million in the second quarter of 2009. The Company incurred net research and development expenditures of $2.43 million for the six months ended June 30, 2010, as compared to $3.90 million for the same period in 2009.
Corporate and administration decreased to $684,000 for the second quarter of 2010, compared to $1.32 million for the second quarter of 2009. Isotechnika incurred corporate and administration expenditures of $1.41 million for the six months ended June 30, 2010, as compared with 2.34 million for the same period in fiscal 2009.
The Company, as at June 30, 2010, had $4.20 million in cash and cash equivalents, accounts and other receivables of $473,000 and accounts payable and accrued liabilities of $1.01 million. The Company will need to raise additional cash in the near future.
For further discussion of the Company's financial results for the three months ended June 30, 2010, the unaudited interim consolidated financial statements and the Management's Discussion and Analysis for the second quarter ended June 30, 2010 are accessible on Isotechnika's Web site at www.isotechnika.com or at www.sedar.com.
Lux Biosciences, Inc. Update
The company announced on August 4, 2010 that Lux received a Complete Response letter (CRL) from the FDA regarding their NDA for voclosporin. The FDA requested additional information and recommended that an additional clinical trial be conducted in order to consider a future approval of voclosporin for this indication.
We seek Safe Harbour.
Isotechnika Pharma Inc.
Consolidated Condensed Interim Statements of Operations and Comprehensive
Income (Loss)
(Unaudited)
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(expressed in thousands of Canadian dollars)
Three Months Ended Six Months Ended
June 30 June 30 June 30 June 30
2010 2009 2010 2009
$ $ $ $
Revenue
Research and development revenues 980 - 1,993 -
Licensing revenue 491 102 829 281
Contract services and other 19 54 128 132
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1,490 156 2,950 413
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Expenses
Research and development, net 1,023 1,493 2,425 3,902
Corporate and administration 684 1,315 1,409 2,339
Amortization of property
and equipment 206 225 423 452
Amortization and write-down of
intellectual property 218 31 254 203
Contract services and other 5 35 33 56
Interest and prepayment costs
on long-term debt - 225 - 1,077
Loss on disposal of equipment - (2) - (57)
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2,136 3,322 4,544 7,972
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Loss before the undernoted (646) (3,166) (1,594) (7,559)
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Other income (expense)
Net gain on plan of arrangement - 2,345 - 2,345
Foreign exchange gain (loss) (11) 85 - 50
Interest income 1 9 4 34
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(10) 2,439 4 2,429
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Net loss from continuing operations (656) (727) (1,590) (5,130)
Net income from discontinued
operations 170 255 1,900 529
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Net income (loss) for the period (486) (472) 310 (4,601)
Other comprehensive income - - - -
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Comprehensive income (loss)
for the period (486) (472) 310 (4,601)
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For further information: Dr. Robert Foster, President & CEO, 780-487-1600 (247), [email protected]; Mr. Dennis Bourgeault, Chief Financial Officer, 780-487-1600 (226), [email protected]
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