Akela Pharma reports results for the three and nine months ended September 30, 2011
AUSTIN, TX, Nov. 15, 2011 /PRNewswire/ - Akela Pharma, Inc. ("Akela"), (TSX: AKL) and PharmaForm, a leading specialty contract service provider in the area of pharmaceutical dosage form development and manufacturing, today announced its financial results for the three and nine months September 30, 2011.
Total consolidated revenues for the three months ended September 30, 2011 were $16.3 million, including $14.4 million of co-development revenue, as compared to $3.1 million, including $0.8 million of co-development revenue, for the same period during the previous year. Co-development revenues increased during the quarter from recognition of previously deferred revenues associated with terminated development agreements of the Company's development partners for the Fentanyl Taifun® program.
Total consolidated revenues for the six months ended September 30, 2011 were $25.6 million as compared to $9.6 million for the same period in 2010.
Consolidated net income for the three months ended September 30, 2011 was $13.3 million, or $0.41 per share, versus $0.1 million or nil per share, for the same period in 2010.
Consolidated net income for the nine months ended September 30, 2011 was $13.8 million, or $0.43 per share, versus a loss of $0.1 million or nil per share, for the same period in 2010.
| Three Months Ended September 30 | Nine Months Ended September 30 | |||
| 2011 | 2010 | 2011 | 2010 | |
| Total Comprehensive income(loss) | 13,295 | 117 | 13,773 | (56) |
| Basic | 0.41 | nil | 0.43 | nil |
| and diluted net income (loss) per share | 0.4 | nil | 0.42 | nil |
| Basic | 32,390,338 | 31,515,338 | 32,390,338 | 31,515,338 |
| and diluted weighted average shares | 32,999,157 | 31,562,838 | 32,999,157 | 31,562,838 |
The Company had a cash balance of $0.48 million as of September 30, 2011 as compared with $0.21 million as of March 31, 2011.
About Akela Pharma Inc.
Akela Pharma is the parent company of PharmaForm, and its common shares trade on The Toronto Stock Exchange ("TSX") under the symbol "AKL" with 32.4 million shares outstanding.
About PharmaForm
PharmaForm, a wholly-owned subsidiary of Akela Pharma, Inc, is a leading specialty contract manufacturer in the area of pharmaceutical dosage form development, specializing in controlled release and bioavailability enhancement technologies, such as hot melt extrusion, fluid bed processing, liquid filled capsules, and spray drying. Through its diverse offerings, PharmaForm solutions help pharmaceutical and biotechnology clients reach their drug development targets, reduce development costs and accelerate time-to-market for their products.
This press release contains statements which may constitute forward-looking information under applicable Canadian securities legislation or forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1955. Such forward-looking statements or information may include financial and other projections as well as statements regarding the company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the company's underlying assumptions. The words "may", "would", "could", "will", "likely", "expect", anticipate", "intend", "plan", "forecast", "project", "estimate" and "believe" or other similar words and phrases may identify forward-looking statements or information. Persons reading this press release are cautioned that such statements or information are only expectations, and that the company's actual future results or performance may be materially different.
Forward-looking statements or information in this press release include, but are not limited to, statements or information concerning our ongoing drug development programs and collaborations as well as the possible receipt of future payments upon achievement of milestones.
Such forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause our actual results, events or developments to be materially different from results, events or developments expressed or implied by such forward-looking statements or information. Such factors include, among others, the possibility that risks associated with requirements for approvals by government agencies such as the FDA before products can be tested in clinical trials; the possibility that such government agency approvals will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to advance development; risks associated with the requirement that a drug candidate be found safe and effective after extensive clinical trials; our dependence on suppliers, collaborative partners and other third parties and the prospects and timing for negotiating supply agreements, corporate collaborations or licensing arrangements; our ability to attract and retain key personnel; and other factors as described in detail in our filings with the Canadian securities regulatory authorities at http:www.sedar.com.
Assumptions underlying our expectations regarding forward-looking statements or information contained in this press release include, among others, that future clinical trial results will be favorable; that our drug candidate will treat target diseases as intended; that we will raise enough capital, on reasonable terms and in a timely manner; that we will retain our key personnel; that we will obtain the necessary regulatory approvals.
In the event that any of these assumptions prove to be incorrect, or in the event that we are impacted by any of the risks identified above, we may not be able to continue in our business as planned.
For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with Canadian securities regulatory authorities, filed on SEDAR at http://www.sedar.com.
All forward-looking statements and information made herein are based on our current expectations as of the date hereof and we disclaim any intention or obligation to revise or update such forward-looking statements and information to reflect subsequent events or circumstances, except as required by law.
AKELA PHARMA INC.
Condensed Consolidated Statements of Financial Position
(Unaudited)
September 30, 2011 and December 31, 2010
(in thousands of US dollars, except share and per share data)
| As at September 30, 2011 |
As at December 31, 2010 |
||||
| Assets | |||||
| Current assets: | |||||
| Cash | $ | 476 | $ | 474 | |
| Accounts receivable | 1,075 | 1,590 | |||
| Prepaid expenses and other current assets | 224 | 302 | |||
| 1,775 | 2,366 | ||||
| Property and equipment | 2,423 | 3,085 | |||
| Intangible assets | 39 | 74 | |||
| Other assets | 196 | 67 | |||
| $ | 4,433 | $ | 5,592 | ||
| Liabilities and Shareholders' Deficiency | |||||
| Current liabilities: | |||||
| Accounts payable and accrued liabilities | $ | 6,757 | $ | 5,709 | |
| Deferred revenue | 270 | 3,527 | |||
| Income Tax Payable | 266 | ||||
| Current portion of long-term debt | 163 | 1,037 | |||
| 7,190 | 10,539 | ||||
| Deferred revenue | - | 12,979 | |||
| Long-term debt | 7,522 | 6,443 | |||
| Income taxes | 259 | - | |||
| Shareholders' deficiency: | |||||
| Common shares (unlimited authorized, 32,390,338 common shares issued and outstanding with no par value at September 30, 2011 and December 31, 2010, respectively) |
67,739 | 67,739 | |||
| Additional paid-in capital | 8,499 | 8,441 | |||
| Deficit | (86,776) | (100,549) | |||
| Total shareholders' deficiency | (10,538) | (24,369) | |||
| Commitments, contingencies and guarantees | |||||
| $ | 4,433 | $ | 5,592 | ||
See accompanying notes to audited consolidated financial statements.
AKELA PHARMA INC.
Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)
(Unaudited)
Three and nine months periods ended September 30, 2011 and 2010
(in thousands of US dollars, except share and per share data)
| |
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||
| 2011 | 2010 | 2011 | 2010 | |||||||
| Revenues | $ | 16,317 | $ | 3,984 | $ | 23,587 | $ | 9,635 | ||
| Expenses: | ||||||||||
| Direct costs | 2,345 | 1,307 | 4,930 | 4,138 | ||||||
| Selling, general & administrative | 691 | 1,231 | 3,084 | 4,292 | ||||||
| Research and development | 65 | 21 | 198 | 279 | ||||||
| Stock-based compensation | 11 | 5 | 58 | 18 | ||||||
| Depreciation of property equipment | 220 | 405 | 663 | 1,138 | ||||||
| Amortization of intangible assets | 11 | - | 35 | - | ||||||
| Interest on long-term debt | 84 | 103 | 210 | 283 | ||||||
| Unrealized loss on securities held for trading | - | 2 | 78 | |||||||
| Foreign exchange (gain) loss | (405) | 793 | 636 | (348) | ||||||
| Gain(loss) on expiration and valuation of warrants as debt | - | - | (187) | |||||||
| Total expenses | 3,022 | 3,867 | 9,814 | 9,691 | ||||||
| Income (loss) before under noted items | 13,295 | 117 | 13,773 | (56) | ||||||
| Income (loss) before income taxes | 13,295 | 117 | 13,773 | (56) | ||||||
| Total Comprehensive income (loss) | 13,295 | 117 | 13,773 | (56) | ||||||
| Basic | 0.41 | 0.00 | 0.43 | (0.00) | ||||||
| and diluted net income (loss) per share | 0.40 | 0.00 | $ | 0.42 | $ | (0.00) | ||||
| Basic | 32,390,338 | 31,515,338 | 32,390,338 | 31,515,338 | ||||||
| and diluted weighted average number of shares outstanding | 32,999,157 | 31,562,838 | 32,999,157 | 31,562,838 | ||||||
See accompanying notes to audited consolidated financial statements.
AKELA PHARMA INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine months periods ended September 30, 2011 and 2011
(in thousands of US dollars, except share and per share data)
| Nine months ended September 30, | ||||||
| 2011 | 2010 | |||||
| Cash flows from operating activities: | ||||||
| Net income/(loss) and comprehensive income(loss) | $ | 13,773 | $ | (56) | ||
| Adjustments for: | ||||||
| Amortization and write-off of property and equipment | |
662 | |
1,138 | ||
| Amortization of intangible assets | 35 | - | ||||
| Stock-based compensation | 58 | 18 | ||||
| Unrealized (gain) loss on securities held for trading | - | 78 | ||||
| Unrealized foreign exchange loss | 205 | (332) | ||||
| Net changes in operating assets | - | - | ||||
| and liabilities (note 13) | (14,731) | (148) | ||||
| 2 | 698 | |||||
| Cash flows from financing activities: | ||||||
| Restricted cash | - | 938 | ||||
| Proceeds from issuance of shares | - | - | ||||
| Repayment of convertible debentures | - | - | ||||
| Share issue costs | - | - | ||||
| Proceeds from issuance of long-term debt | - | 750 | ||||
| Addition to deferred financing fees | - | - | ||||
| Repayment of long-term debt | (1,523) | |||||
| Cash flows from investing activities: | ||||||
| Acquisition of property and equipment | (40) | |||||
| Net increase (decrease) in cash and cash equivalents | 2 | 823 | ||||
| Cash and cash equivalents, beginning of period | 474 | 107 | ||||
| Cash and cash equivalents, end of period | $ | - | $ | 930 | ||
| Cash and cash equivalents are composed of: | ||||||
| Cash | 476 | 930 | ||||
| $ | 476 | $ | 930 | |||
Supplemental cash flow disclosure (note 13)
See accompanying notes to unaudited consolidated financial statements.
SOURCE AKELA PHARMA INC.
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