http://www.imvaccine.com/ () —
Immunovaccine Inc. (TSX VENTURE: IMV), a clinical stage vaccine
company, today announced its operational and financial results for the
second quarter ended June 30, 2024 ("Q2 Fiscal 2010").
"In July, we signed a deal with Merck KGaA to add DPX-Survivac to our
pipeline," said Dr. Randal Chase, President and CEO of Immunovaccine.
"This gives us two clinical stage cancer vaccines in active
development. Over the coming months our focus will remain on our
ongoing Phase I study with DPX-0907 in patients with breast, prostate
or ovarian cancer. At the same time, we will begin the formulation and
optimization process of combining Survivac and DepoVax with the goal
of moving to the clinic as soon as possible. We also look forward to
leveraging our clinical work to accelerate our business development
efforts with additional licensing agreements and research
collaborations."
Financial Results for three months ended June 30, 2024
-- Reported a consolidated net loss of $1,802,000 in Q2 Fiscal 2010
compared to a net loss $914,000 during the three month period ended June
30, 2009. Of this increase, approximately $298,000 related to the
increased expenses associated with the Phase I clinical trial, $238,000
related to increased business development expenditures and $115,000
related to an increase in non-cash stock-based compensation. The
remaining increase of $237,000 related primarily to increased
administrative and regulatory costs associated with being a reporting
issuer.
-- Reported revenues in Q2 Fiscal 2010 of $6,000 compared to no revenues in
the first quarter of 2009. These revenues were generated through the
Company's animal health activities.
-- Ended June 30, 2024 with cash and equivalents of approximately $5.7
million.
Results from operations
Overall operating expenses increased by $844,000 (85 during Q2
Fiscal 2010 compared to the three month period ended June 30, 2009.
During the six month period ending June 30, 2024 total operating
expenses increased by $1,339,000 (65%) compared to the six month
period ended June 30, 2009. The higher operating expenses are mainly a
result of the Company's research and development expenses associated
with the DPX-0907 Phase I clinical trial, as well as advancing
preclinical studies, business development activities, and expenses
associated with now being a publicly traded company.
Total research and development (R&D) expenses of $854,000 for Q2
Fiscal 2010 represented a $301,000 (54 increase over the three month
period ended June 30, 2009. Total R&D expenses of $1,621,000 incurred
during the six month period ended June 30, 2024 represented an
increase of $377,000 (30%) over the six month period ended June 30,
2009. The largest component of R&D expenses, $632,000, was directly
associated with the continuation of the Phase I clinical trial for the
Company's therapeutic cancer vaccine, DPX-0907.
General and administrative (G&A) expenses of $500,000 represented 27%
of total expenses for Q2 Fiscal 2010 compared to $310,000 (31% of
total expenses) for the three month period ended June 30, 2009. G&A
expenses of $889,000 represented 26% of total expenses for the six
month period ended June 30, 2024 compared to $597,000 (29% of total
expenses) for the six month period ended June 30, 2009. Overall
increased G&A expenses are due primarily to increased professional
services and regulatory expenses associated with being a reporting
issuer.
The Company continued to expand its business development (BD)
activities during Q2 Fiscal 2010. Total BD expenses of $339,000
represented an increase of $238,000 compared to the three month period
ended June 30, 2009. Total BD expenses for the six month period ended
June 30, 2024 were $522,000 and represented an increase of $328,000,
compared to the six month period ended June 30, 2009. Included in this
increase were $156,000 in legal fees and $63,000 in consulting fees
directly related to expanding the Company's vaccine pipeline, leading
to the recent completion of both the Merck KGaA and Oncothyreon
agreements.
Investment tax credits decreased to $50,000 for the total amount
recorded for the six month period ended June 30, 2010, from
approximately $155,000 during the six month period ended June 30,
2009. The decrease is a result of becoming a public corporation on
October 1, 2009, pursuant to which to which the Company no longer
qualifies for the refundable federal portion of the investment tax
credits.
Non-cash stock-based compensation increased by $342,000 to $382,000
during the six month period ended June 30, 2024 compared to the six
month period ended June 30, 2009. The increase was due primarily to
the increased number of presently vesting options when compared to the
six month period ended June 30, 2009, when there were a smaller number
of unvested options outstanding.
As of August 27, 2010, issued and outstanding common shares are
45,555,479, with 3,259,687 stock options and 431,573 broker warrants
outstanding. The outstanding stock options have a weighted average
exercise price of $0.86 per share, and a weighted average remaining
term of 5.3 years. The outstanding warrants expire on September 30,
2010 and have an exercise price of $0.70 per share.
Cash and cash equivalents
At June 30, 2010, the Company had cash and cash equivalents of
$5,718,000, as compared to cash and cash equivalents of $6,866,000 at
March 31, 2024 and $7,777,000 at December 31, 2009. At June 30, 2010,
the Company had working capital of $6,311,000, as compared to working
capital of $7,639,000 at March 31, 2024 and $8,326,000 at December 31,
2009.
The "cash burn rate" of the Company (defined as net loss for the
period adjusted for non-cash transactions including amortization,
stock-based compensation and shares issued for professional services)
is forecasted to increase slightly due to the continuation of the
Phase I clinical trial, and be in the range of $1.5 million to $1.7
million per quarter, on average, during Fiscal 2010. At June 30, 2010,
the Company had cash resources of approximately $5.7 million and
identified additional potential cash resources of $1.5 million.
Management is of the belief that this provides the Company with
sufficient funds to execute the strategy of completing the DPX-0907
Phase I trial while maintaining adequate working capital until the
third quarter of 2011 as there are discretionary expenditures within
the current cash forecast which would be reduced in the event that the
identified potential sources of cash are not realized or receipt is
delayed. The Company continually reassesses the adequacy of its cash
resources since should either positive research results be obtained
from existing research projects and/or potential collaboration
opportunities identified, then additional funding may be required.
On August 11, 2010, the Company announced that it had filed a
preliminary short form prospectus in connection with a marketed
offering of Units of the Company (the "Offering"). Each Unit will
consist of one common share of the Company and one-half of one common
share purchase warrant (the "Warrant"). Each whole Warrant will
entitle the holder to acquire one common share of the Company upon
payment of the exercise price for a period of 36 months following the
closing of the Offering. The price of the Units will be determined in
the context of the market, with final pricing, determination of the
number of Units to be sold pursuant to the Offering, and the exercise
price and terms of the Warrants will be disclosed immediately prior to
the filing of the final short form prospectus in respect of the
Offering. The Offering is expected to close in September 2010.
On July 12, 2010, the Corporation announced that it had entered into
an agreement with Merck KGaA to in-license EMD 640744, an
investigational therapeutic survivin-based cancer vaccine, known as
DPX-Survivac, designed to target multiple solid tumors and
hematological malignancies. With the proceeds of the Offering, the
Company intends to complete a Phase I study of DPX-Survivac. The
Company intends to conduct most of its research activities using its
own resources while utilizing third party subcontractors for the
manufacture of clinical grade batches of the vaccine and to conduct
clinical trials. The remaining proceeds will be used for general
supporting research and development and general corporate and working
capital purposes.
Recent Developments and Outlook
Immunovaccine continues to execute its business strategy and is
actively pursuing additional collaborations and licensing deals. The
Company's lead product DPX-0907, a therapeutic cancer vaccine, is on
track to complete a Phase I clinical trial in 2011. With the recent
acquisition of the Survivin-based vaccine from Merck KGaA, the Company
is prioritizing the development of DPX-Survivac. The Survivin protein
antigen has been ranked by the National Cancer Institute as a
promising antigen because it is over-expressed in common cancers, such
as melanoma, prostate, pancreatic, colorectal and multiple myeloma and
virtually undetected in healthy tissue. Immunovaccine will further
enhance DPX-Survivac by formulating it in its DepoVax delivery
system, and completing the necessary preclinical work to take it into
further clinical studies.
During Q2 Fiscal 2010 the Company also furthered its efforts to raise
awareness of its technology and identify additional partnerships. Key
achievements include:
-- On April 5, 2010, the Company announced the publication of its DPX-0907
preclinical study comparing the Company's DepoVax vaccine delivery
platform to a standard vaccine formulation used in the clinic today to
deliver peptide antigens. The study shows that the DepoVax platform
promotes stronger antigen specific immune responses and unlike the
control vaccine, the DepoVax formulation does not induce problematic
immune regulatory responses.
-- On April 12, 2010, the Company signed a collaborative research agreement
with the Dana-Farber Cancer Institute, a principal teaching affiliate of
the Harvard Medical School. This research involves formulating Dana-
Farber's HIV protein antigens in the Company's DepoVax vaccine
delivery platform to establish whether it will induce a stronger immune
response.
-- On May 12, 2010, Mr. Paul Kirkconnell was elected to the Board of
Directors.
-- On June 7, 2010, the Company announced that it had signed a
collaborative research agreement with Vaxil BioTherapeutics, an Israel-
based company, to explore the efficacy of Vaxil's cancer antigens in the
Company's DepoVax vaccine platform.
-- On June 9, 2010, the Company announced the appointment of Keith Abriel,
CA, CFA, as acting Chief Financial Officer, with immediate effect,
following the departure of Chief Financial Officer, Mr. Gary Dodge, CA
on June 7, 2010. Mr. Abriel will fulfill the role of acting Chief
Financial Officer until a permanent appointment is made.
-- On June 29, 2010, the Company announced that it had signed a research
agreement with Oncothyreon Inc. a company based in Seattle, to formulate
Oncothyreon's ONT-10, a therapeutic vaccine product candidate, in the
Company's DepoVax vaccine platform for preclinical testing.
-- Immunovaccine also announced, on July 12, 2010, that it had entered into
an agreement with Merck KGaA to in-license EMD 640744, an
investigational therapeutic survivin-based cancer vaccine. In acquiring
this novel vaccine, the Company intends to build on the current on-going
Phase I study for EMD 640744 by formulating DPX-Survivac in its
DepoVax vaccine platform. The license agreement grants the Company
exclusive worldwide rights, under issued patents and patent
applications, to develop and commercialize DPX-Survivac for multiple
cancer indications. Under the terms, the Company will pay Merck KGaA
success-based milestone payments and royalties as a percentage of
product sales. Merck KGaA, based in Darmstadt, Germany, is a global
pharmaceutical and chemical company with total revenues of approximately
EUR 7.7 billion in 2009 and approximately 33,600 employees in 64
countries according to its public filings.
-- On July 29, 2010, the Company announced that Mr. Albert Scardino joined
its Board of Directors.
-- Immunovaccine also announces the resignation of Mr. Brian Lowe as Vice
President and Corporate Secretary, effective immediately, in order to
devote his full-time energies to his other businesses. Mr. Lowe, a Co-
Founder of the Company, will continue to assist the Company as a
consultant and remains committed to the continued and future success of
Immunovaccine.
The Company's unaudited consolidated financial statements for Q2
Fiscal 2010 and the management discussion and analysis are available
at www.sedar.com (http://www.sedar.com) .
Immunovaccine Inc. (TSX VENTURE: IMV) is a clinical stage vaccine
development company focused on the commercialization of its patented
DepoVax vaccine delivery technology and product candidates. The
company continues to strengthen its vaccine pipeline through licensing
and strategic partnerships to develop therapeutic cancer and
infectious disease vaccines. www.imvaccine.com
(http://www.imvaccine.com)
This press release contains forward-looking information under
applicable securities law. All information that addresses activities
or developments that we expect to occur in the future is
forward-looking information. Forward-looking statements are based on
the estimates and opinions of management on the date the statements
are made. However, they should not be regarded as a representation
that any of the plans will be achieved. Actual results may differ
materially from those set forth in this press release due to risks
affecting the Company, including access to capital, the successful
completion of clinical trials and receipt of all regulatory approvals.
Immunovaccine Inc. assumes no responsibility to update forward-looking
statements in this press release except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.