Research and development (R&D) expenses before tax credits amounted to $470,203 in the first quarter of 2013, compared with $1,028,563 in the first quarter of 2012. The Company completed enrollment of the 45 patients recruited in the SHIGATEC Phase II trial in January 2012, consequently the 54% decrease in R&D costs is the result of reduced clinical trial expenditures, decreased costs related to manufacturing activities and other miscellaneous cost reductions.
General and administrative expenses amounted to $641,547 in the first quarter of 2013 compared with $613,128 in the first quarter of 2012. This slight increase is primarily the result of having collected $25,000 in proceeds from the disposal of an asset held for sale in the first quarter of 2012.
The Company recorded net earnings of $8,771,812 or $0.27 per share in the first quarter of 2013, compared with a net loss of $835,254 or $0.03 per share in the first quarter of 2012. This increase in net earnings is primarily due to the recognition of $9,656,256 in collaboration and licensing revenues as a result of the early termination of the agreement with LFB, described above.
As at February 28, 2013, the Company's unrestricted cash position amounted to $9,542,208, which consists of cash and short-term investments. The Company's liquidity availability amounted to $10,544,945 compared with $11,289,797 on November 30, 2012. The Company's working capital amounted to $9,832,624 as at February 28, 2013, compared to $10,705,174 as at November 30, 2012, a decrease of $872,550. The decreases in liquidity and working capital are primarily due to activities related to the Company's first quarter 2013 operations.
As of April 24, 2013, the Company had 32,194,566 common shares outstanding and a total of 3,676,450 stock options.
About Thallion Pharmaceuticals Inc.
Thallion Pharmaceuticals Inc. (TSX VENTURE: TLN) is a biotechnology company developing pharmaceutical products in the areas of infectious disease and oncology. The Company's lead clinical program Shigamabs® is a dual antibody product for the treatment of Shiga toxin-producing E. coli bacterial infections and has recently completed a Ph II clinical trial. Additional information about Thallion can be obtained at www.thallion.com.
Forward-Looking Statements
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect" and other similar expressions which constitute "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking statements reflect Thallion's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, risks relating to the outcome of the strategic review process. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Thallion undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable Canadian securities laws.
Financial results included below:
THALLION PHARMACEUTICALS INC.Condensed Consolidated Statements of Financial Position(unaudited)-------------------------------------------------------------------------------------------------------------------------------------------------------- February 28, November 30, 2013 2012----------------------------------------------------------------------------AssetsCurrent assets: Cash $ 1,844,989 $ 7,236,228 Short-term investments 7,697,219 3,124,580 Foreign exchange forward contracts - 13,275 Sales tax receivable and other assets 61,542 28,650 Balance of sale receivable 601,306 605,675 Tax credits receivable 401,431 323,314 Deposits and prepaid expenses 51,763 153,553---------------------------------------------------------------------------- 10,658,250 11,485,275Restricted cash 1,000,000 1,000,000Property and equipment 34,584 36,306---------------------------------------------------------------------------- 1,034,584 1,036,306---------------------------------------------------------------------------- $ 11,692,834 $ 12,521,581--------------------------------------------------------------------------------------------------------------------------------------------------------Liabilities and EquityCurrent liabilities: Trade and other payables $ 825,626 $ 780,101Deferred revenues - 9,656,256Equity: Share capital 115,512,823 115,512,823 Warrants 1,375,000 1,375,000 Contributed surplus 20,378,144 20,367,972 Deficit (126,398,759) (135,170,571)----------------------------------------------------------------------------Equity attributable to equity holders of the Company 10,867,208 2,085,224---------------------------------------------------------------------------- $ 11,692,834 $ 12,521,581----------------------------------------------------------------------------THALLION PHARMACEUTICALS INC.Condensed Consolidated Statements of Earnings (Loss) and ComprehensiveIncome (Loss)(unaudited)-------------------------------------------------------------------------------------------------------------------------------------------------------- Three-month periods ended -------------------------------- February 28, February 29, 2013 2012----------------------------------------------------------------------------Revenues Collaboration and licensing revenues $ 9,656,256 $ 616,557----------------------------------------------------------------------------Expenses Research and development 470,203 1,028,563 Tax credits (78,117) (94,882) -------------------------------- 392,086 933,681 General and administrative 641,547 613,128 Finance (income) costs Interest income (17,323) (16,142) Foreign exchange (gain) loss (153,541) 49,110 Changes in fair value of foreign exchange forward contracts 21,675 (127,966)---------------------------------------------------------------------------- 884,444 1,451,811----------------------------------------------------------------------------Net earnings (loss) and comprehensive income (loss) attributable to equity holders of the Company $ 8,771,812 $ (835,254)--------------------------------------------------------------------------------------------------------------------------------------------------------Basic and diluted earnings (loss) per share $ 0.27 $ (0.03)----------------------------------------------------------------------------THALLION PHARMACEUTICALS INC.Condensed Consolidated Statements of Cash Flows(unaudited)-------------------------------------------------------------------------------------------------------------------------------------------------------- Three-month periods ended -------------------------------- February 28, February 29, 2013 2012----------------------------------------------------------------------------Cash flows used in operating activities:Net earnings (loss) $ 8,771,812 $ (835,254)Adjustments for: Depreciation 2,663 3,255 Interest income (17,323) (16,142) Interest received 16,472 19,780 Gain on disposal of property and equipment - (25,331) Effect of exchange rate fluctuations on cash held 918 95,433 Effect of exchange rate fluctuations on balance of sale receivable (22,037) - Recognition of deferred revenues (9,656,256) - Decrease (increase) in fair value of open foreign exchange forward contracts 13,275 (84,375) Stock-based compensation 10,172 9,882---------------------------------------------------------------------------- (880,304) (832,752)Changes in operating assets and liabilities: Sales tax receivable and other assets (32,041) (13,336) Tax credits receivable (78,117) (94,882) Deposits and prepaid expenses 21,694 19,119 Trade and other payables 125,621 (491,523) Provisions - (55,224) Deferred revenues - 414,059---------------------------------------------------------------------------- 37,157 (221,787)---------------------------------------------------------------------------- (843,147) (1,054,539)----------------------------------------------------------------------------Cash flows (used in) from investing activities: Proceeds from disposal of investment in Caprion Proteomics Inc. 26,406 - Acquisition of short-term investments (6,556,903) (1,010,186) Proceeds from disposal/maturity of short- term investments 1,984,264 1,000,000 Additions to property and equipment (941) - Proceeds from disposal of property and equipment - 25,331---------------------------------------------------------------------------- (4,547,174) 15,145----------------------------------------------------------------------------Net decrease in cash (5,390,321) (1,039,394)Cash, beginning of period 7,236,228 5,005,687Effect of exchange rate fluctuations on cash held (918) (95,433)----------------------------------------------------------------------------Cash, end of period $ 1,844,989 $ 3,870,860----------------------------------------------------------------------------
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Thallion Pharmaceuticals Inc.
Michael Singer
Chief Financial Officer
(514) 940-3600
(514) 336-2343 (FAX)
info@thallion.com
www.thallion.com
