Champions Biotechnology Reports Fiscal 2010 First Quarter Financial Results
Baltimore, MD – September 14, 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 first quarter ended July 31, 2009. 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 2010 were $962,000 as compared to $673,000 in the first quarter of 2009, an increase of 43%. This increase was derived from the Company’s Personalized Oncology business, which generated revenues of $899,000 for the first quarter of 2010 compared to $616,000 in the comparable quarter of last year. This increase consisted of increases in Personalized Oncology Tumorgraft studies and vaccines, partially offset by a decrease in revenues from physician panels. Preclinical eValuation revenues for three months ended July 31, 2009, and 2008 were $63,000 and $57,000, respectively.
Costs of Personalized Oncology services for the first quarter of 2010 was $634,000 as compared to $226,000 in the first quarter of 2009, an increase of 181%. The cost of Personalized Oncology services increased due to an increase in the number of Tumorgraft studies, which have higher expenses (lower gross margins) than revenues derived from our physician panels. In addition, the Company recognized the costs of a vaccine development study which required additional up front expenses. Cost of Preclinical eValuation services for the three months ended July 31, 2009, and 2008 were $34,000 and $34,000, respectively.
Research and Development expenses for the first quarter of 2010 was $496,000 as compared to $231,000 in the comparable quarter of 2009, an increase of 115%. The increase in research and development resulted from the Company’s continued efforts to build its Tumorgraft platform and development costs associated with securing the Company’s future drug pipeline candidates.
General and Administrative expenses for the first quarter of 2010 was $806,000 as compared to $334,000 in the comparable quarter of 2009, an increase of 141%. The increase is primarily due to the continued investment in our corporate infrastructure to support our overall growth and expansion into Israel and the United Kingdom.
For the first quarter ended July 31, 2009, the Company reported a net loss of $1,003,000 or ($0.03) per share compared to a net loss of $131,000 or $0.00 per share in the comparable quarter in 2009.
The Company’s cash and cash equivalents on July 31, 2009 was $1,530,000 compared to $2,745,000 at April 30, 2009.
Doug Burkett, Ph.D., President of Champions Biotechnology, Inc., commented, “this past quarter we saw continued improvement in the Company’s revenue growth and we continued to build our Tumorgraft platform.” In addition, the Company continued to make progress during the quarter on the following fronts:
- The Company saw quarterly top line revenues increase 43% year over year.
- Promising discussions with numerous companies for additional service contracts in the Preclinical eValuation business yielded another large new customer early in the second quarter.
- The Company advanced its due-diligence and negotiations to in-license promising oncology compounds by leveraging its Tumorgraft platform to select the most promising candidates.
- Champions established a collaboration agreement with Do-Coop, an Israel based biotech firm to develop a more soluble form of its SG410 oncology drug candidate. The soluble form was developed by Do-Coop which enables SG410 to advance to Tumorgraft testing.
- The Company conducted its first Personalized Oncology Panel™ in Israel and built infrastructure to grow the business there.
- The Company launched its Personalizedcancertreatment.com website that provides information and access to the Company’s personalized treatment program.
Furthermore, as previously announced, since the end of the July 31, 2009 quarter, the Company entered into a major collaboration agreement with PinnacleCare, the world’s leading private health advisory. This partnership will enable Champions to educate many more physicians regarding the Company’s services and assist many more individuals with cutting edge research to personalize their cancer treatment.
For more information regarding Champions Biotechnology’s business and recent news, please visit www.championsbiotechnology.com. To learn more about personalized cancer treatment, please visit www.personalizedcancertreatment.com.