Champions Biotechnology Reports Fiscal 2009 Full-Year Financial Results
Baltimore, MD – August 27, 2009 – 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, today announced its financial results for the fiscal year ended April 30, 2009. Full details of the Company’s financial results are available in the Company’s Form 10-K available at www.championsbiotechnology.com.
For the fiscal year ended April 30, 2009 the company’s operating revenues were $3,710,000 as compared to $1,400,000 for the fiscal year ended April 30, 2008. The Company generated $3,278,000 in revenues in FY 2009 from its Personalized Oncology business, which assists physicians by providing services that may enhance personalized treatment options for their cancer patients, and its Preclinical eValuation business generated $432,000, which assists drug development companies in the preclinical evaluation and development of their drug candidates.
Personalized Oncology expenses for the fiscal 2009 year were $1,623,000 compared to $490,000 in fiscal 2008. The increase was due to the overall growth in the Personalized Oncology business during the year. Preclinical eValuation expenses ended the year at $357,000 compared to zero in fiscal 2008, as fiscal 2009 was the first year that the Company generated revenues and expenses in this business.
Research and Development expenses ended fiscal 2009 at $1,721,000 compared to $200,000 in fiscal 2008. The increase in Research and Development expenses was mainly attributable to the Company’s Tumorgraft expansion program that included the acquisition, propagation, storage and characterization of tumors. Additional Research and Development investments were made in Drug Development which includes the salaries, consulting and legal fees incurred in the identification and securing of the Company’s future drug pipeline candidates.
General and Administrative expenses totaled $2,055,000 in fiscal 2009 compared to $1,150,000 in fiscal 2008. The overall increase related mainly to the growth of the business and the continued growth of the management team and corporate infrastructure to meet the requirements of a growing public company.
For the year ended April 30, 2009 the Company reported a net loss of $2,242,000 or ($0.07) per share compared to a net loss of $411,000 or ($0.01) per share in fiscal 2008. Non cash expenses i.e., share based compensation and an impairment charge related to intangible assets totaled $752,000 ($0.02) per share in fiscal 2009 compared to $617,000 or ($0.02) in fiscal 2008.
The Company’s cash and short term investments position on April 30, 2009 was $2,745,000 compared to $3,709,000 a year earlier on April 30, 2008.
Doug Burkett, Ph.D., President of Champions Biotechnology, Inc. commented, “This year we saw a dramatic increase in our revenues as we gained traction with our Personalized Oncology services and began to recognize revenues in our Preclinical eValuation business. Additionally, expenses increased as we invested in current and future growth. Investments increased to fulfill the demands of our growing customer base, to grow our Tumorgraft platform and to identify oncology drug candidates to in-license. Our base business continued to generate growing revenue to support the value drivers for our company, which remain the development of our drug pipeline and portfolio of royalty agreements on oncology drugs.”
Dr. Burkett continued, “The progress made in our second full year of operations has been very promising. As we move into fiscal 2010, we will continue to work to develop a strong drug candidate pipeline by leveraging the predictive capability of our growing Tumorgraft platform.”
Fiscal 2009 Highlights:
- The Company saw top line revenues increase 165% with growth from its Personalized Oncology and Preclinical eValuation businesses.
- Experienced positive increases in contract signing and saw deferred revenues end the 2009 fiscal year at $1.2 million compared to $0.5 million in the prior year.
- Continued to build out its Tumorgraft platform with nearly 200 Tumorgrafts available and/or in development at April 30, 2009 representing all the major solid tumor indications.
- Champions’ Preclinical eValuation services business was launched and completed contracts with large pharmaceutical companies to evaluate their drug candidates. The business delivered its first drug development project to a major top tier Biotech and has several other studies nearing completion.
- The Company began its effort to build an oncology drug pipeline and completed its first royalty agreement on an oncology drug candidate with Concordia Pharmaceuticals.
- Champions established a collaboration with Do-Coop, an Israel based biotech firm to develop a more soluble form of its SG410 drug candidate, which allowed Champions to move forward into Biomerk Tumorgraft testing.
- The Company entered into a collaboration with Gradalis and Mary Crowley Cancer Research Center to develop personalized cancer vaccines for cancer patients.
- The Company launched its Personal Oncology website www.personalizedcancertreatment.com and established a UK subsidiary, Champions Biotechnology, UK Ltd. and an Israel branch.