EWING, N.J., Nov. 11, 2015 /PRNewswire/ -- Celator Pharmaceuticals, Inc. (Nasdaq: CPXX) announced that the company has been approved to sell $1,802,000 of its net operating losses and unused research and development (R&D) credits under the New Jersey Technology Business Tax Certificate Transfer Program for the year 2015, for which it expects to receive $1,675,860 in non-dilutive financing.
"We are pleased the New Jersey Economic Development Authority (NJEDA) approved Celator to participate in this program again. The more than $1.675 million strengthens our financial position and further extends the company's cash runway into the second half of 2016 as we progress our lead product candidate, VYXEOS™, and our technology platform work with molecularly targeted agents (MTAs)," said Fred M. Powell, vice-president and chief financial officer of Celator. "We expect to have overall survival data from the Phase 3 study of VYXEOS, in patients with high-risk (secondary) acute myeloid leukemia, in the first quarter of 2016 and earlier this week we announced positive results working with MTAs. Lastly, we appreciate New Jersey's strong support of the biotechnology industry."
This program enables approved, unprofitable New Jersey-based technology and biotechnology businesses to sell their unused net operating loss carryovers and unused research and development credits to unaffiliated, profitable corporate taxpayers in New Jersey. This allows those technology and biotechnology businesses to turn their tax losses and credits into cash to fund equipment and facilities, and for other allowable expenditures. The NJEDA determines eligibility and the New Jersey Division of Taxation determines the value of the tax benefits. Celator has been approved to participate in the program for each of the last seven years.
About Celator Pharmaceuticals, Inc.
Celator Pharmaceuticals, Inc., with locations in Ewing, N.J., and Vancouver, B.C., is a clinical stage biopharmaceutical company that is transforming the science of combination therapy, and developing products to improve patient outcomes in cancer. Celator's proprietary technology platform, CombiPlex®, enables the rational design and rapid evaluation of optimized combinations incorporating traditional chemotherapies as well as molecularly targeted agents to deliver enhanced anti-cancer activity. CombiPlex addresses several fundamental shortcomings of conventional combination regimens, as well as the challenges inherent in combination drug development, by identifying the most effective synergistic molar ratio of the drugs being combined in vitro, and fixing this ratio in a nano-scale drug delivery complex to maintain the optimized combination after administration and ensure its exposure to the tumor. Celator's pipeline includes lead product, VYXEOS™ (formerly CPX-351), a liposomal formulation of cytarabine:daunorubicin being studied for the treatment of acute myeloid leukemia; CPX-1, a liposomal formulation of irinotecan:floxuridine being studied for the treatment of colorectal cancer; and a preclinical stage product candidate, CPX-8, a hydrophobic docetaxel prodrug nanoparticle formulation, being studied by the National Cancer Institute's Nanotechnology Characterization Laboratory. The company is advancing the CombiPlex platform and broadening its application to include molecularly targeted therapies. The company is seeking research and development collaborations, applying its proprietary technologies, with other biotechnology/pharmaceutical companies.
To the extent that statements contained in this press release are not descriptions of historical facts regarding Celator, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "expect," "anticipate," "estimate," "intend," and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Examples of forward-looking statements contained in this press release include, among others, statements regarding the efficacy and therapeutic potential of VYXEOS™ (formerly CPX-351), the availability of data from clinical studies, and our expectations regarding our research and development programs. Forward-looking statements in this release involve substantial risks and uncertainties that could cause our research and development programs, the efficacy and commercial potential of our drug candidates, and our performance and achievements to differ significantly from those expressed or implied by the forward-looking statements. Celator undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Celator in general, see Celator's Form 10-K for the year ended December 31, 2014, subsequent reports on Form 10-Q and 8-K, and other filings by Celator with the U.S. Securities and Exchange Commission.
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SOURCE Celator Pharmaceuticals, Inc.