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Quest PharmaTech Announces Third Financial Quarter Results and Provides Corporate Update
TSX Venture: QPT
EDMONTON, Dec. 18 /CNW/ - Quest PharmaTech Inc. (TSX-V: QPT), a
pharmaceutical company developing and commercializing products for the
treatment of cancer and dermatological conditions, today announced fiscal
third quarter results for the period ended October 31, 2008.
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Highlights for the quarter
- Continuation of the ongoing toxicology testing to support a Phase I
clinical trial for Prostate Cancer treatment
- Finalization of a Phase I clinical trial protocol for Prostate Cancer
Program in consultation with potential clinical investigators
- Completion of enrolment for the 110-patient Phase I/II Hair Removal
Clinical Trial
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Third Quarter Financial Results
Revenues from license fees and market distribution rights for the three
and nine month periods ended October 31, 2008 were $502,000 and $1,506,000,
respectively. For the three and nine month periods ended October 31, 2007,
revenues were $2,000 and $172,005, respectively.
Net consolidated loss for the three and nine month periods ended October
31, 2008 were $291,428 or $0.00 per share and $237,883 or $0.00 per share,
respectively. This compares to a consolidated loss of $566,459 or $0.01 per
share and $1,105,365 or $0.02 per share, respectively, for the three and nine
month periods ended October 31, 3007.
Research and development expenditures for the three and nine month
periods ended October 31, 2008 totaled $676,446 and $1,252,170, respectively.
For the three and nine month periods ended October 31, 2007, R&D expenditures
were $415,753 and $748,844, respectively.
General and administrative expenses were $118,889 and $466,817,
respectively, for the three and nine month periods ended October 31, 2008. For
the three and nine month periods ended October 31, 2007, G&A expenses were
$113,924 and $429,592, respectively.
As of October 31, 2008, the Company had cash and cash equivalents of
$608,066. The Company also has debt of $500,000 in the form of a convertible
debenture, which is exercisable at $0.25 and due on March 22, 2009.
The Company anticipates receiving $1,000,000 during the current fiscal
year to develop oncology products based on its SonoLight Technology from one
of its strategic partners. The Company also expects to receive up to $200,000
in a government research grant to offset the costs to develop its ultrasound
activation technology.
Corporate Update
Quest PharmaTech announced that it has taken steps to repatriate
worldwide rights to SonoLight Technology for dermatology applications from
Paramount Biosciences.
On April 30, 2007, the Company entered into an agreement with Paramount
Biosciences to develop and commercialize SonoLight Technology for dermatology
applications. Under the terms of the agreement, the Company received U.S.
$300,000 as a licensing fee. The Company has been advised that Paramount
Biosciences subsequently assigned the license agreement to North Park
Aesthetics.
The Company believes that the licensee failed to abide by certain terms
of the Agreement, including its obligation in respect of the commercialization
of the SonoLight Technology; and hence, Quest has terminated the license
agreement.
“The termination of this agreement provides Quest with the opportunity to
actively engage in new partnering discussions with companies who share our
vision to develop best-in-class products based on our photodynamic therapy
platform,” stated Dr. Madi R. Madiyalakan, Chief Executive Officer of Quest.
Additionally, Quest announced it will hold its upcoming Annual General
and Special Meeting of shareholders (the “AGM”) on January 15, 2009. In
connection with the AGM, Dr. Bin Huang will be stepping down as a director of
Quest effective January 15, 2009. Quest’s management and board of directors
wish to thank Dr. Huang for her dedication and commitment to the Company
during the past several years. As well, Quest has nominated Mr. Lorne Meikle
to the Board of Directors.
Mr. Meikle is currently the President and Chief Executive Officer of LOB
Ordeins Inc., the former President & CEO of BCY LifeSciences Inc. (TSX-V:BCY)
and a member of the Executive Committee for The Biotechnology Initiative
(TBI). He was a member of the senior management groups at Glaxo Canada, Smith
Kline French, Ortho-McNeil, and directed the International marketing program
at Connaught Laboratories, now Sanofi Pasteur.
In recent years he was President of TBI; Vice President, Immunovaccine
Technologies Inc.; President and Chief Executive Officer of Seragen
Biopharmaceuticals Ltd.; the Canadian affiliate of Seragen Inc., now part of
Ligand, Inc.; CEO of GeneSense Technologies Inc., now part of Lorus
Therapeutics; and chaired the steering committee for BIO 2002 in Toronto.
Additionally, he was the President, Chief Executive Officer, Founder and a
director of BioCatalyst Yorkton Inc., a venture management company that
specialized in the formation of and management of early-stage healthcare
companies.
About Quest PharmaTech Inc.
Quest is a publicly traded, Alberta-based pharmaceutical company
committed to the development and commercialization of new pharmaceutical
products. It is developing a series of products for the treatment of cancer
and dermatological conditions based on its unique photodynamic and sonodynamic
therapy platforms.
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"TSX Venture Exchange has neither approved nor disapproved of the
information herein."
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%SEDAR: 00008400E
For further information: contact Dr. Madi R. Madiyalakan, Chief
Executive Officer, Quest PharmaTech Inc., Tel: (780) 448-1400 Ext. 204, Email:
madi@questpharmatech.com; Internet: www.questpharmatech.com; Investor
Relations - Adam Peeler, The Equicom Group Inc., Tel: (416) 815-0700 Ext. 225,
E-mail: apeeler@equicomgroup.com
