EDMONTON, Dec. 20 /CNW/ - Quest PharmaTech Inc. (TSX.V: QPT, the "Company
or Quest") is pleased to announce a summary of its financial results and
highlights for the nine month period ended October 31, 2005.
Highlights of Q3, fiscal 2006 and subsequent events
- Net consolidated loss for the three and nine months ended October 31,
2005 was $884,110 or $0.02 per share and $2,339,289 or $0.06 per share
as compared to a consolidated loss of $979,560 or $0.03 per share and
$3,215,099 or $0.10 per share for the three and nine months ended
October 31, 2004.
- the repatriation to Canada of more than $1,000,000 US cash from
the Company's wind-up and dissolution of its former China
subsidiary, Shanghai Altachem Pharma Biotechnology Ltd.
- the initiation of a Phase I clinical trial for the Company's
lead compound, ACP-SL017, targeting Actinic Keratosis.
- the execution of a clinical trial agreement with a third party
to commence further human clinical studies for the Company's
lead compound, ACP-SL017, targeting the areas of hair removal
and acne.
- the election of the Company's Board of Directors, which
includes the addition of two new Board members, Dr. Donald Rix,
Chairman, MDS Metro Laboratory Services, and Mr. Richard H.
Smith, President and CEO, Dow AgroSciences Canada Inc.
- the receipt of shareholder and regulatory approval to change
the Company's name to Quest PharmaTech Inc.
- the amendment of the Company's stock option plan from a fixed
plan to a 10% rolling plan.
- Appointment of an investor relations person to provide investor
relations services to the Company
"Our net loss for the period was significantly lower than that for the
corresponding period last year and shows that Quest has been successful
in reducing expenses and leveraging our own dollars with non-dilutive
government support" commented Dr. David Cox, President & CEO. "Despite
this, we have been able to accomplish some very important objectives,
most notably the initiation of a Phase I clinical trial for our lead
product, ACP-SL017.
Financial Results
Net consolidated loss for the three and nine months ended October 31,
2005 was $884,110 or $0.02 per share and $2,339,289 or $0.06 per share as
compared to a consolidated loss of $979,560 or $0.03 per share and $3,215,099
or $0.10 per share for the three and nine months ended October 31, 2004.
Research and development expenditures totaled $402,094 and $1,105,470 for
the three and nine months ended October 31, 2005 compared to $353,580 and
$1,362,680 for the three and nine months ended October 31, 2004. The increase
in R&D in Q3 relates to increased activity with the Company's clinical trials.
Year to date R&D costs are lower compared to 2004 due to the Company's focus
on its core drug development technologies and also to government funding
during the current periods which offset R&D expenditures. General and
administrative expenses were $336,140 and $897,736 for the three and nine
months ended October 31, 2005 compared to $258,972 and $1,293,143 for the same
periods in 2004. Q3 G&A activity increased due to the Company's AGM in
September and also due to efforts to dispose of SHGP. The year-to-date
decrease relates to a continued streamlining of the Company's administrative
operations.
The Company generates revenue from two sources: sales of Accu-MAb(TM) a
whooping cough diagnostic test kit, and sales of pharmaceutical pellet core.
Sales of Accu-MAb(TM) were $40,739 and $121,411 for the three and nine months
ended October 31, 2005 compared to $34,355 and $101,850 for the three and nine
months ended October 31, 2004. The Company is looking to further expand sales
of Accu-MAb(TM) in Canada, the United States and to other countries.
Pelletcore sales were $22,254 and $49,905 for the three and nine months ended
October 31, 2005 compared to $20,238 and $52,484 for the three and nine months
ended October 31, 2004.
At October 31, 2005, cash and cash equivalents was $552,087 as compared
to $1,931,293 at January 31, 2005.
Additional information related to the Company, including the Company's
financial statements, and management discussion and analysis, is on SEDAR at
www.sedar.com.
About Quest PharmaTech Inc.
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The Corporation is a publicly traded (TSX Venture Exchange: QPT),
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. The Company also
has a profitable product in Accu-MAb(TM), a monoclonal-based diagnostic kit
for whooping cough. For further information, we invite you to visit us at
www.questpharmatech.com
The TSX Venture Exchange has neither approved nor disapproved of the
information contained herein.
%SEDAR: 00008400E
