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Lorus Therapeutics Reports First Quarter Results for Fiscal 2013
TORONTO, ONTARIO--(Oct. 15, 2012) - Lorus Therapeutics Inc. (TSX:LOR) ("Lorus" or the "Corporation"), a biopharmaceutical company specializing in the discovery, research and development of pharmaceutical products and technologies for the management of cancer, today reported financial results for the three months ended August 31, 2012.
Q1 2013 HIGHLIGHTS
"The first quarter of fiscal 2013 was a very successful start to the year with the completion of a significant financing," said Dr. Aiping Young, President and CEO of Lorus. "Lorus continues to advance the LOR-253 Phase I clinical trial towards completion and we anticipate reporting data from the trial during the first calendar quarter of 2013. The proceeds of the private placement during the quarter have also allowed us to initiate a development program for IL-17E, which we believe has tremendous potential as a unique immunotherapeutic approach to the treatment of some of the most important cancers."
Net loss for the three months ended August 31, 2012 was $1.3 million ($0.03 per share) compared with $1.1 million ($0.06 per share) during the same period in fiscal 2012. Increased research and development expenditures of $69 thousand due to increased activity as our IL-17E program gets underway and the LOR-253 Phase I clinical trial moves towards completion, as well as higher general administrative expenses of $72 thousand primarily due to increased legal costs associated with ongoing corporate activities and higher investor relations costs offset by lower accounting costs due to the transition of IFRS in the prior year, resulted in the overall increase in net loss during the quarter.
The Company utilized cash of $1.6 million in our operating activities in the three months ended August 31, 2012 compared with $1.1 million in the same period in the prior year. The increase in cash used in operating activities during the quarter is primarily related to an increase in expenditures in the current quarter and the repayment of outstanding accounts payable and accrual balances.
At August 31, 2012, Lorus had cash and cash equivalents of $4.1 million compared to $320 thousand at May 31, 2012.
Research and development expenses totaled $658 thousand in the three months ended August 31, 2012 compared to $589 thousand during the same period in the prior year. Research and development costs consist of the following:
The increase in research and development costs during the three months ended August 31, 2012 is due to increased activity in the LOR-253 program as Lorus initiated the manufacture of more drug as well as move towards completion of the ongoing Phase I clinical trial, offset by lower personnel allocations to the program due to the stage of development. During the quarter ended August 31, 2012 we initiated development on the IL-17E program which Lorus expects to escalate in the latter half of the fiscal year.
General and administrative expenses totaled $605 thousand for the three months ended August 31, 2012 compared to $533 thousand in the same period in the prior year.
General and administrative costs have increased in the three months ended August 31, 2012 compared with the prior year primarily due to increased legal costs associated with ongoing corporate activities and higher investor relations costs offset by lower accounting costs due to the transition of IFRS in the prior year.
Management has forecasted that the Corporation's current level of cash, cash equivalents and short-term investments is not sufficient to execute its current planned expenditures for the next twelve months without further investment. The Corporation is currently in discussion with several potential investors to provide additional funding. The Corporation also continues to pursue partnership opportunities. Management believes that it will complete one or more of these arrangements in sufficient time to continue to execute its planned expenditures without interruption. However, there can be no assurance that the capital will be available as necessary to meet these continuing expenditures, or if the capital is available, that it will be on terms acceptable to the Corporation.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Canadian and U.S. securities laws. Such statements include, but are not limited to, statements relating to: the ability of the company to continue as a going concern, the ability to find and secure future financing, that we will achieve clinical and other developmental milestones on time or at all, the establishment of corporate alliances or partnerships, the Company's plans, objectives, expectations and intentions and other statements including words such as "continue", "expect", "intend", "will", "should", "would", "may", and other similar expressions. Such statements reflect our current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that, while considered reasonable by us are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements described in this press release. Such expressed or implied forward-looking statements could include, among others: our ability to continue to operate as a going concern; our ability to obtain the capital required for research and operations; the inherent risks in early stage drug development including demonstrating efficacy; development time/cost and the regulatory approval process; the progress of our clinical trials; our ability to find and enter into agreements with potential partners; our ability to attract and retain key personnel; changing market conditions; and other risks detailed from time-to-time in our ongoing quarterly filings, annual information forms, annual reports and annual filings with Canadian securities regulators and the United States Securities and Exchange Commission.
Should one or more of these risks or uncertainties materialize, or should the assumptions set out in the section entitled "Risk Factors" in our filings with Canadian securities regulators and the United States Securities and Exchange Commission underlying those forward-looking statements prove incorrect, actual results may vary materially from those described herein. These forward-looking statements are made as of the date of this press release and we do not intend, and do not assume any obligation, to update these forward-looking statements, except as required by law. We cannot assure you that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.