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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.
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
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.
"TSX Venture Exchange has neither approved nor disapproved of the information herein."
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