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Read More...Tuesday 31st January 2006
Neuromedix Announces Fiscal 2005 Year End Financial Results
TORONTO, Ontario – January 31, 2006: NeuroMedix Inc. (“NeuroMedix”) (TSXV: NMX) today announced its financial results for the fiscal year ended September 30, 2005.
During fiscal 2005, NeuroMedix achieved the following milestones:
“The milestones we have achieved since inception in February 2005, including the completion of our IPO, have created the basis of a strong biotechnology company”, said Dr. Mark L. Pearson, Chief Executive Officer of NeuroMedix. “In the year ahead we look forward to initiating a Phase I clinical trial to advance the development of our Alzheimer’s therapeutic candidate.”
Technology Overview
NeuroMedix’s technology, which was licensed from Northwestern in June 2005, is based on a proprietary class of small molecules discovered by a team of leading experts in the field of neuroinflammation. The compounds are based on an aminopyridazine scaffold that has proven to be highly modifiable, to be orally bio-available and to cross the blood-brain barrier, while retaining anti-neuroinflammatory activity. Using rational drug design methodologies, this chemical scaffold has produced a number of product candidates which NeuroMedix has screened in vitro and in an Alzheimer’s mouse model. These in vitro and animal studies have demonstrated that NeuroMedix’s product candidates are able to reduce the activation of glial cells, inhibit cytokine production, protect neuronal cells against death, maintain cognitive function and ultimately protect against the progression of Alzheimer’s in a mouse model. In such mice, these compounds have demonstrated the ability to protect neurons and restore normal neuronal activity.
NeuroMedix has identified a lead compound and is currently optimizing the manufacturing process for that lead compound and expects to commence pre- clinical toxicology studies by the end of the first quarter of calendar 2006. NeuroMedix then expects to initiate a Phase I human clinical trial during the third quarter of calendar 2006.
Financing Activities
During the period ended September 30, 2005, the Company’s financing activities included founding share issuances and the completion of a private placement which raised gross proceeds of $500,000.
Subsequent to September 30, 2005, the Company filed a final prospectus, and completed its IPO. Under the terms of an agency agreement, the Company issued 13,200,000 common shares, including 1,200,000 common shares on the exercise of an over-allotment option, at a price per share of $0.25 for total gross proceeds of $3,300,000. The Company received cash proceeds of $2.9 million, net of agent’s commissions, legal fees and expenses, and expects to have net proceeds of $2.7 million, after payment of all expenses related to the Offering.
After completion of its IPO, NeuroMedix currently believes, that it has adequate financial resources to meet anticipated expenditures until June 2007.
Financial Review
For the period from February 11, 2005 to September 30, 2005, NeuroMedix recorded a net loss of $462,408, which amounts to a loss of $0.04 per common and Class B share for the period. The loss is reflective of costs associated with licensing technology, research contracts, intellectual property development, management and employee expenses and general administrative costs.
Research and development expenses were $407,782 for the period ended September 30, 2005. The research and development expenses for this period consisted primarily of fees paid to external service providers for items such as licensing technology, research, research management and intellectual property.
General and administrative expenses were $54,738 for the period ended September 30, 2005. The general and administrative expenses for this period consisted primarily of payroll, legal and consulting fees and general office expenses.
About NeuroMedix:
NeuroMedix is a biotechnology company focused on the development of therapeutic agents for the treatment of degenerative and inflammatory diseases of the central nervous system, such as Alzheimer's disease, multiple sclerosis and Parkinson’s disease. Our therapeutic drug candidates are based on research from a team of leading experts in the field of neuroinflammation and have been demonstrated to reduce brain inflammation, to protect neuronal cells, and to prevent the loss of cognitive function in an Alzheimer’s disease animal model in mice. Based on these findings, NeuroMedix is pursuing the development of a lead compound for the prevention of Alzheimer's disease in humans. NeuroMedix’s shares are listed on the TSX Venture Exchange under the symbol “NMX”.
Financial Information to follow:
Mark Pearson, PhD.
Chief Executive Officer
NeuroMedix Inc.
mark@neuromedixinc.com
Catherine Auld, CA
Chief Financial Officer
NeuroMedix Inc.
cathy@neuromedixinc.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Except for historical information, this press release may contain forward-looking statements, which reflect the Company’s current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may include but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Company’s ongoing quarterly and annual reporting.
During fiscal 2005, NeuroMedix achieved the following milestones:
- Licensed technology from Northwestern University (“Northwestern”), Chicago IL;
- Sponsored research which has resulted in the selection of an orally active lead compound for clinical development for the treatment of Alzheimer’s disease (“Alzheimer’s”);
- Completed a private placement raising gross proceeds of $500,000; and
- Assembled a core management team.
“The milestones we have achieved since inception in February 2005, including the completion of our IPO, have created the basis of a strong biotechnology company”, said Dr. Mark L. Pearson, Chief Executive Officer of NeuroMedix. “In the year ahead we look forward to initiating a Phase I clinical trial to advance the development of our Alzheimer’s therapeutic candidate.”
Technology Overview
NeuroMedix’s technology, which was licensed from Northwestern in June 2005, is based on a proprietary class of small molecules discovered by a team of leading experts in the field of neuroinflammation. The compounds are based on an aminopyridazine scaffold that has proven to be highly modifiable, to be orally bio-available and to cross the blood-brain barrier, while retaining anti-neuroinflammatory activity. Using rational drug design methodologies, this chemical scaffold has produced a number of product candidates which NeuroMedix has screened in vitro and in an Alzheimer’s mouse model. These in vitro and animal studies have demonstrated that NeuroMedix’s product candidates are able to reduce the activation of glial cells, inhibit cytokine production, protect neuronal cells against death, maintain cognitive function and ultimately protect against the progression of Alzheimer’s in a mouse model. In such mice, these compounds have demonstrated the ability to protect neurons and restore normal neuronal activity.
NeuroMedix has identified a lead compound and is currently optimizing the manufacturing process for that lead compound and expects to commence pre- clinical toxicology studies by the end of the first quarter of calendar 2006. NeuroMedix then expects to initiate a Phase I human clinical trial during the third quarter of calendar 2006.
Financing Activities
During the period ended September 30, 2005, the Company’s financing activities included founding share issuances and the completion of a private placement which raised gross proceeds of $500,000.
Subsequent to September 30, 2005, the Company filed a final prospectus, and completed its IPO. Under the terms of an agency agreement, the Company issued 13,200,000 common shares, including 1,200,000 common shares on the exercise of an over-allotment option, at a price per share of $0.25 for total gross proceeds of $3,300,000. The Company received cash proceeds of $2.9 million, net of agent’s commissions, legal fees and expenses, and expects to have net proceeds of $2.7 million, after payment of all expenses related to the Offering.
After completion of its IPO, NeuroMedix currently believes, that it has adequate financial resources to meet anticipated expenditures until June 2007.
Financial Review
For the period from February 11, 2005 to September 30, 2005, NeuroMedix recorded a net loss of $462,408, which amounts to a loss of $0.04 per common and Class B share for the period. The loss is reflective of costs associated with licensing technology, research contracts, intellectual property development, management and employee expenses and general administrative costs.
Research and development expenses were $407,782 for the period ended September 30, 2005. The research and development expenses for this period consisted primarily of fees paid to external service providers for items such as licensing technology, research, research management and intellectual property.
General and administrative expenses were $54,738 for the period ended September 30, 2005. The general and administrative expenses for this period consisted primarily of payroll, legal and consulting fees and general office expenses.
About NeuroMedix:
NeuroMedix is a biotechnology company focused on the development of therapeutic agents for the treatment of degenerative and inflammatory diseases of the central nervous system, such as Alzheimer's disease, multiple sclerosis and Parkinson’s disease. Our therapeutic drug candidates are based on research from a team of leading experts in the field of neuroinflammation and have been demonstrated to reduce brain inflammation, to protect neuronal cells, and to prevent the loss of cognitive function in an Alzheimer’s disease animal model in mice. Based on these findings, NeuroMedix is pursuing the development of a lead compound for the prevention of Alzheimer's disease in humans. NeuroMedix’s shares are listed on the TSX Venture Exchange under the symbol “NMX”.
Financial Information to follow:
NeuroMedix Inc.For further information on NeuroMedix, visit www.neuromedixinc.com or contact:
(formerly BioQuest Therapeutics Inc.)
(a development stage company)
BALANCE SHEET
September 30,
2005
$
-------------------------------------------------------------------------
ASSETS
Current
Cash 18,099
Receivables 4,611
Deposits on collaborations 26,051
Deferred financing costs 17,625
Prepaid expenses 12,500
-------------------------------------------------------------------------
Total current assets 78,886
-------------------------------------------------------------------------
Property and equipment, net 2,451
-------------------------------------------------------------------------
81,337
-------------------------------------------------------------------------
-------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 51,776
-------------------------------------------------------------------------
Total liabilities 51,776
-------------------------------------------------------------------------
Shareholders' equity
Share capital
Common shares 1
Class B shares 491,968
Deficit (462,408)
-------------------------------------------------------------------------
Total shareholders' equity 29,561
-------------------------------------------------------------------------
81,337
Commitments
Guarantees
Subsequent events
-------------------------------------------------------------------------
-------------------------------------------------------------------------
NeuroMedix Inc.
(formerly BioQuest Therapeutics Inc.)
(a development stage company)
STATEMENT OF LOSS AND DEFICIT
Period from
February 11, 2005
to September 30, 2005
$
-------------------------------------------------------------------------
EXPENSES
Research and development 407,782
General and administrative 54,738
Amortization 259
-------------------------------------------------------------------------
462,779
-------------------------------------------------------------------------
Loss before the following (462,779)
Interest income 371
-------------------------------------------------------------------------
Net loss for the period (462,408)
Deficit, beginning of period -
-------------------------------------------------------------------------
Deficit, end of period (462,408)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic and diluted net loss per common and Class B share (0.04)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Weighted average common and Class B shares outstanding 13,170,690
NeuroMedix Inc.
(formerly BioQuest Therapeutics Inc.)
(a development stage company)
STATEMENT OF CASH FLOWS
Period from
February 11, 2005
to September 30, 2005
$
-------------------------------------------------------------------------
OPERATING ACTIVITIES
Net loss for the period (462,408)
Add amortization not involving cash 259
-------------------------------------------------------------------------
(462,149)
Changes in non-cash working capital items (9,011)
-------------------------------------------------------------------------
Cash used in operating activities (471,160)
-------------------------------------------------------------------------
INVESTING ACTIVITIES
Purchase of property and equipment (2,710)
-------------------------------------------------------------------------
Cash used in investing activities (2,710)
-------------------------------------------------------------------------
FINANCING ACTIVITIES
Proceeds from issuance of common shares 1
Proceeds from issuance of Class B shares, net 491,968
-------------------------------------------------------------------------
Cash provided by financing activities 491,969
-------------------------------------------------------------------------
Net increase in cash during the period 18,099
Cash, beginning of period -
-------------------------------------------------------------------------
Cash, end of period 18,099
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Mark Pearson, PhD.
Chief Executive Officer
NeuroMedix Inc.
mark@neuromedixinc.com
Catherine Auld, CA
Chief Financial Officer
NeuroMedix Inc.
cathy@neuromedixinc.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Except for historical information, this press release may contain forward-looking statements, which reflect the Company’s current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may include but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Company’s ongoing quarterly and annual reporting.
