Champions Biotechnology Reports Fiscal 2009 First Quarter Financial Results
Arlington, VA – September 16, 2008 – Champions Biotechnology, Inc. (OTC Bulletin Board: CSBR), a company engaged in the development of advanced preclinical platforms and tumor specific data to enhance the value of oncology drugs, reports its financial results for the first fiscal quarter ended July 31, 2008. Full details of the Company’s financial results are available in the Company’s Form 10-Q at www.championsbiotechnology.com.
Total revenues for the first quarter of 2009 increased to $673,117, or 169% compared to $250,000 for the same period in 2008. The Company derived its revenues primarily from its Personalized Oncology business.
Total operating expenses for the first quarter of 2009 were $861,315, an increase of 249% compared to $246,791 for the same period of last year. First quarter 2009 operating expenses included the following:
Research and development expenses of $217,163, an increase of 190% compared to $75,000 for the comparable prior period in fiscal 2008. The increase of $142,163 was primarily related to expenses for Tumorgraft acquisition and development and increased expenses related to the development of the Company’s lead oncology drug candidate, SG410.
The costs of personalized oncology and preclinical contract services were $259,600 for the quarter ended July 31, 2008 as compared to $80,562 in the quarter ended July 31, 2007.
General and administrative expenses in the first quarter of 2009 were $384,552 compared to $91,229 in the comparable quarter of 2008, an increase of $293,323 or 322%. Expenses increased as the Company grew its operational infrastructure including the addition of personnel, consultants and offices.
The Company reported a net loss of $167,482 or $0.01 per diluted shares for the first quarter of 2009 as compared to net income of $8,568 or $0.00 per diluted shares in the first quarter of 2008.
The Company’s cash position on July 31, 2008, was $3,494,872. During the first quarter of 2009, the Company used $212,159 in operating activities, $14,372 in investing activities and generated $12,267 in financing activities. The Company’s working capital as of July 31, 2008 was $2,672,380. 2
“We achieved our goals for growing and validating our Biomerk Tumorgraft™ preclinical platform during the first quarter and began generating revenue from its use in our Preclinical eValuation business,” stated Douglas Burkett, Ph.D., President of Champions Biotechnology, Inc. “We believe that Biomerk Tumorgrafts are predictive of Phase II clinical outcomes. Such predictive capability would represent a leap in preclinical technology. Our ultimate goal is to use our predictive platform to screen drug candidates and acquire or license the most promising candidates to build our own pipeline of high value oncology drugs. This is expected to be the leading value driver for the Company. We look forward to updating our shareholders as we move ahead.”
Highlights of the first quarter are:
- The Company grew its preclinical platform by expanding its Tumorgraft inventory and then propagating and storing banks of Biomerk Tumorgrafts for use in future analysis of oncology drugs.
- The growing platform of Biomerk Tumorgrafts enabled the Preclinical eValuation business to begin generating revenue. Biomerk Tumorgrafts are used to evaluate the efficacy of drug candidates pursuant to contracts with leading pharmaceutical companies.
- The Company advanced discussions, designed studies and prepared protocols for several of the world’s largest pharmaceutical companies; the Company anticipates that these relationships will result in future revenue for the Preclinical eValuation business.
- The Company began initiatives to grow its own drug development business. The Company is actively seeking preclinical stage oncology drug candidates that it may license or acquire based on evaluation of the drugs in its Biomerk Tumorgrafts. If candidates demonstrate efficacy in the Biomerk Tumorgraft models, the Company plans to advance them through preclinical trials and then sell or license the drug to, or partner with, leading pharmaceutical or biotech companies for the remaining clinical development. The Company believes that its Biomerk Tumorgraft preclinical platform is predictive of Phase II clinical trial results and therefore drug candidates that demonstrate efficacy in the model will significantly increase in value.