Champions Oncology Reports Fiscal 2012 First Quarter Financial Results

Baltimore, MD – September 13, 2011 – Champions Oncology, Inc. formerly Champions Biotechnology, Inc. (OTC: CSBR) reported the following results:

Fiscal Year 2012 First Quarter Financial Results

Total operating revenues for the first quarter of fiscal 2012 were $1.63 million compared to $1.60 million in the first quarter of fiscal 2011.  Total operating expenses for the first quarter of fiscal 2012 were $3.85 million compared to $2.20 million in the first quarter of fiscal 2011.  Champions reported a net loss of $2.04 million, or ($0.04) per share, compared to a net loss of $0.59 million, or ($0.02) per share, in the corresponding prior year quarter.  Champions recognized a net loss of $1.03 million excluding stock based compensation* of $1.01 million, or ($0.02) per share for the first quarter of fiscal 2012 compared to a net loss of $0.42 million excluding stock based compensation* of $0.17 million, or ($0.01) per share for the first quarter of fiscal 2011.

Services Revenues

Revenues from Translational Oncology Solutions (TOS) were $1.03 million for the quarter compared to $0.49 million in the corresponding quarter of the prior year, an increase of 110%.  The increase in TOS revenues was driven by an increase in the number of contracts over the prior period, resulting from the company’s increased sales efforts.

Cost of TOS services for the first quarter of fiscal 2012 was $0.42 million which resulted in a gross margin of 59% as compared to 55% in the corresponding 2011 fiscal quarter.

Revenues from Personalized Oncology Solutions (POS) were $0.60 million compared to $1.11 million in the corresponding prior year quarter. This decrease was the result of the company’s strategic decision to re-engineer its products to facilitate lower price points which are expected to result in higher volumes.

During the quarter, the company did generate significantly higher volumes but these were not yet sufficient to overcome the impact of the price decreases.  These decreases were partially offset by an increase in sequencing revenue over the prior year first quarter.

Cost of POS for the first quarter of 2012 was $0.48 million which resulted in a gross margin of 20% as compared to 71% in the corresponding 2011 fiscal quarter.  The decrease in gross margin can be attributed to declines in pricing.

Research and Development

Research and development (“R&D”) expenses for the first quarter of fiscal 2012 were $0.54 million as compared to $0.92 million in the first quarter of fiscal 2011. The decrease from 2011 to 2012 was primarily related to lower spending on our technology platform and tumorgraft testing on the in-licensed compounds.

Sales and Marketing

Sales and marketing expenses for first quarter of fiscal 2012 were $0.69 million as compared to $0.13 million in the first quarter of fiscal 2011. The increase is primarily related to the increase in Company sales force personnel and increased marketing and promotional expenses.

General and Administrative Expenses

General and administrative expenses for first quarter of fiscal 2012 were $1.72 million as compared to $0.60 million in the first quarter of fiscal 2011. The increase is primarily related to the increase in Company personnel due to growth and stock-based compensation.

For the first quarter of fiscal 2012, the Company reported a net loss of $2.04 million, or ($0.04) per share, compared to a net loss of $0.59 million, or ($0.02) per share, in the corresponding quarter of fiscal 2011. In addition to the factors described above, the Company’s net losses reflect non-cash expenses, i.e., share-based compensation and depreciation, of $1.04 million or ($0.02) per share, in the first quarter of 2012 compared to $0.18 million, or ($0.01) per share, in the first quarter of 2011.

The Company’s cash position on July 31, 2011 was $8.84 million.