Trading Symbol: QPT:TSX Venture Exchange
EDMONTON, May 31 /CNW/ - Quest PharmaTech Inc. ("Quest" or the "Company")
announces a summary of its financial results and highlights for the fiscal
year ended January 31, 2006.
Highlights of fiscal 2006
- Net consolidated loss for the year ended January 31, 2006 was
$3,503,813 or $0.08 per share as compared to a consolidated loss of
$4,381,953 or $0.12 per share for the year ended January 31, 2005.
Research and development expenditures totalled $1,257,649 for the year
ended January 31, 2006 compared to $1,891,532 for the year ended January 31,
2005. The decrease in R&D in 2006 relates to the Company's focus on its core
drug development technologies and also to government funding during 2006 which
offset R&D expenditures. General and administrative expenses were $1,069,241
for the year ended January 31, 2006 compared to $1,641,710 for the year ended
2005. The decrease in G&A activity relates to a continued streamlining of the
Company's administrative operations.
At January 31, 2006, cash and cash equivalents were $115,505 as compared
to $1,799,155 at January 31, 2005.
"Although Quest faces financial challenges in connection with its
continuing operations, the net loss for the year was lower than that for
the prior year and shows that Quest has been able to reduce expenses and
use government funding to support its development programs" commented Mr.
Pierre Vermette, Chief Financial Officer. The Company continues to run
its operations from the proceeds of the sale of non-core assets and from
loans from insiders while seeking strategic partners for the development
of products from the SonoLight technology platform. The Company also
anticipates the final Phase I clinical trials results for its lead
compound, SL017, in the second quarter of 2006.
During the year ended January 31, 2006 (and subsequent thereto), the
Company experienced numerous significant developments. Highlights are:
- a concentration of the Company's efforts on drug development, with a
special focus on the Company's novel and proprietary photodynamic
treatments for cancer and skin diseases.
- discontinuation of the Company's operations in China. This
discontinuance includes a wind-up and dissolution of SACP and
repatriation of SACP's assets back to Canada and a proposed sale of
the Shanghai-based manufacturing facility.
- the sale of the Company's HIP technology back to the original
inventor.
- the receipt of positive China testing results for Bionex hand gel
disinfectant.
- the initiation of a Phase I clinical trial for the Company's lead
compound, SL017, targeting Actinic Keratosis, acne and cosmetic hair
removal.
- the receipt of approval from the Australian Patent Office for the
immunotherapy applications of hypocrellin derivatives.
- during the year ended January 31, 2006, the Company received
approximately $2.9 million from a combination of equity, debenture,
debt financing, sale of non-core assets and government support
programs and was able to retire a significant amount of debt and
begin to deploy new resources to program development.
- the resignation, effective March 24, 2006, of Dr. David J. Cox as the
Company's President and CEO and the appointment of Dr. Ragupathy
Madiyalakan as Executive Chairman.
- the six month extension of the maturity of the Company's 8%
$1,000,000 convertible debenture, which is now due September 22,
2006.
Additional information related to the Company, including the Company's
financial statements, and management discussion and analysis, is on SEDAR at
www.sedar.com.
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 risk and
uncertainties, which may cause 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.
"TSX Venture Exchange has neither approved nor disapproved of the
information contained herein"
