MONTREAL, QUEBEC -- (Marketwired) -- 04/24/13 -- Thallion Pharmaceuticals Inc. (TSX VENTURE: TLN) today announced its operational and financial results for the 2013 first quarter ended February 28, 2013.
With the completion of the SHIGATEC Phase II trial and recently announced decision to temporarily suspend the future development of its Shigamabs® program, the Company has elected to restructure its organization and materially reduce current expenditures during its ongoing strategic review process. Effective this week, Thallion has reduced its clinical and administrative headcount, representing the Company's most significant operating cost for its 2013 fiscal year, by approximately 70%. As a result, the Company will record a one-time charge of approximately $550,000 in severance and termination costs for the second quarter ended May 31, 2013.
"I would like to express my deepest gratitude to the employees of Thallion for their professionalism and dedication to this Company", said Dr. Allan Mandelzys, Chief Executive Officer of Thallion. "The management of Thallion remains committed to minimizing the operational burn during the strategic review process and to ultimately leverage our assets in a corporate transaction that is of the greatest potential value to our shareholders."
Effective today, the Company has also announced that Mr. Roberto Bellini has resigned from the Board of Directors in order to pursue other interests. He had been a member of Thallion's Board since 2007. "On behalf of Thallion's Board and management, I would like to thank Roberto for his deep commitment to the Company, and for his guidance, thoughtfulness and important contributions throughout his tenure", said Lloyd M. Segal, Thallion's Chairman.
-- The Special Committee comprised of independent directors of the Board continues to actively evaluate potential corporate opportunities with a view to maximizing shareholder value.-- To limit operational spend during the strategic review process, the Company has undergone a corporate restructuring and significantly reduced headcount, subsequent to quarter end.-- The Company has met the specific conditions under its indemnity agreement with Premium Brands Holding Corporation and as such, the irrevocable letter of credit in favour of Premium Brands was removed and the Company's restricted cash position of $1,000,000 was reinstated as unrestricted cash, subsequent to quarter end.-- The Company closed out the SHIGATEC Phase II clinical study, subsequent to quarter end.-- Thallion has obtained court approval to delay the holding of its 2013 Annual General Meeting of Shareholders to be held by no later than September 27, 2013, subsequent to quarter end.-- Mr. Roberto Bellini resigned from the Company's Board of Directors effective April 24, 2013.
Collaboration and licensing revenues for the three-month period ended February 28, 2013, were $9,656,256 compared to $616,557 for the three-month period ended February 29, 2012. The increase in first quarter revenue is due to the early termination of the development and license agreement with LFB in February 2013; as the Company will no longer be continuing the development of Shigamabs® under the agreement nor receiving any further payments, the deferred revenue balance was recognized as collaboration and licensing revenues in the first quarter of 2013.