HALIFAX, NOVA SCOTIA--(Marketwire - March 28, 2013) - Immunovaccine Inc. (TSX VENTURE:IMV), a clinical stage vaccine company, today announced its financial and operational results for the year ended December 31, 2012.
"2012 was a year of impressive achievement and advancement for Immunovaccine," commented John Trizzino, CEO of Immunovaccine. "The Company reached important milestones during the year, all of which resulted in greater visibility within the industry, validation of our platform technology and programs, and ultimately, the enhancement of Immunovaccine's value. I'm particularly proud of the fact that these achievements came from the broad utilization of our technology platform, DepoVax™, in cancer and infectious diseases."
Highlights of 2012 and First Quarter of 2013
- DPX-Survivac Vaccine for Advanced Ovarian Cancer - Immunovaccine released positive results from its Phase 1 clinical trial of DPX-Survivac, an ovarian cancer vaccine candidate. Clinical data showed that all patients treated with the vaccine therapy produced targeted immune responses and that there were multiple strong responders among this group who presented circulating target specific T cells (CD8 T cells) in their blood. The presence of circulating CD8 T cells is critical in treating cancer because these particular T cells are implicated in identifying cancer cells, infiltrating tumors and killing cancer targets.
- DPX-0907 Vaccine for Breast and Ovarian Cancer - The Company signed an Investigator-Initiated Study Agreement for the ongoing evaluation of its DPX-0907 vaccine candidate in patients with breast and ovarian cancer. Immunovaccine expects the Phase 1/2 study, which will be funded by the investigator's research organization, to be initiated during the fourth quarter of 2013. This vaccine candidate has been shown to be well-tolerated while generating specific polyfunctional T cell responses and triggering increases in antigen-targeted CD8 T cells in a completed Phase 1 trial. These positive Phase 1 results were published in the peer-reviewed Journal of Translational Medicine.
- Infectious Diseases - Expanded Internal Program and Collaboration with NIH - In addition to its cancer vaccine work, Immunovaccine is also focused on aggressively advancing a broad infectious diseases vaccine pipeline with specific programs targeting areas such as anthrax, malaria and RSV. As part of this work, the Company has aligned with the National Institutes of Health (NIH) to develop vaccines for anthrax and malaria. Studies conducted by the NIH in the area of anthrax showed anthrax vaccines formulated with Immunovaccine's DepoVax technology provided a more rapid and long-lasting immune response as compared to the FDA-licensed anthrax vaccine, BioThrax. Based on this data, Immunovaccine intends to initiate additional studies of DepoVax™-based anthrax vaccines in 2013. The Company also reported positive results from early malaria studies conducted by the NIH using Immunovaccine's DepoVax™ technology. At the same time, RSV studies are being advanced independently by Immunovaccine and the Company plans to move this program into Phase 1 trials in the near term.
- Financing, equity and non-dilutive funding - In the last year, Immunovaccine has dedicated itself to being capital efficient in support of our ambitious clinical development plans, successfully raising $4.4 million while leveraging an additional $6.0 million in non-dilutive funding. Immunovaccine will continue to use a combination of strategic partnerships, non-dilutive financing and equity to support its development programs and in turn drive value creation.
- Recognized in the industry as the "Best Early-Stage Vaccine Biotech" at the 5th Vaccine Industry Excellence (VIE) Awards - The "Best Early-Stage Vaccine Biotech" was awarded to Immunovaccine based on the Company's strong early clinical trial results in immunotherapy and key collaborations that have expanded its product pipeline in infectious diseases, addiction and biodefense vaccines.
Annual Financial Results
The Company prepares its audited annual consolidated financial statements in accordance with Canadian generally accepted accounting principles as established in the Handbook of the Canadian Institute of Chartered Accountants - Part I ("CICA Handbook"), which incorporates International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB").
The net loss and comprehensive loss of $6,400,000 for the year ended December 31, 2012 was $406,000 lower than the net loss and comprehensive loss during the year ended December 31, 2011. This relates mainly to the $906,000 decrease in R&D costs, a $47,000 decrease in accreted interest and an income tax recovery of $27,000, offset by a $439,000 increase in G&A expenses and an increase of $135,000 in BD costs.
At December 31, 2012, the Company had cash and cash equivalents of $2,001,000 and working capital of $2,064,000, as compared to $5,071,000 and $5,133,000, respectively at December 31, 2011. For the year ended December 31, 2012, the Company's quarterly "cash burn rate" (defined as net loss for the period adjusted for non-cash transactions including amortization, depreciation, accretion of long-term debt, stock-based compensation and income tax recovery) was approximately $1.4 million. The Company forecasts the cash burn rate to be between $1.0 million to $1.6 million per quarter over the next twelve months.
As of March 28, 2013, the number of issued and outstanding common shares of the Company was 68,412,996. As of March 28, 2013, the number of outstanding stock options was 5,229,650, and the number of outstanding warrants was 3,732,550.
The Company's audited annual consolidated financial statements for 2012, filed in accordance with IFRS, and the management discussion and analysis (MD&A), are available at www.sedar.com.
Amendment to Contract with Brisco Capital Partners Corp.
In 2012, the Company retained Brisco Capital Partners Corp ("Brisco") to provide strategic investor relations services. This contract was amended on March 28, 2013. Under the terms of the amended agreement with Brisco, the Company will pay Brisco a fee of $5,000 for each full working day of services provided by Brisco to the Company at the Company's request.
Immunovaccine Inc. applies its novel adjuvanting platform to the development of vaccines for cancer therapy, infectious diseases and animal health. The Company's DepoVax™ platform is a patented formulation that provides controlled and prolonged exposure of antigens plus adjuvant to the immune system. Immunovaccine has advanced two DepoVax™-based cancer vaccines into Phase 1 human clinical trials. The Company is also advancing a broad infectious diseases pipeline including vaccines in such indications as malaria, respiratory syncytial virus (RSV) and anthrax. In addition to the Company's human health vaccine strategy, it continues to capture value from animal health vaccine applications. Immunovaccine has key partnerships in the animal health sector including an agreement with Zoetis, former animal health division of Pfizer. Connect at 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.