Thursday May 11, 8:30 am ET
VANCOUVER, BRITISH COLUMBIA–(CCNMatthews – May 11, 2006) – Allon Therapeutics Inc. (TSX:NPC – News), The Neuro Protection Company(TM), reported today in its first quarter 2006 operating results that it continued to achieve important milestones in its drug development programs.
Achievements during the quarter included:
– Publication of results from a Phase Ia human clinical trial showing AL-208 to be safe and well tolerated in the target population for the treatment of mild cognitive impairment (MCI) associated with coronary artery bypass graft surgery (CABG).
– Completion of planning for a Phase II human clinical trial seeking to show AL-208 efficacy for MCI associated with CABG. Allon expects to start this trial by mid-year.
– Commencement of dosing in a Phase Ib human clinical trial seeking to demonstrate multiple-dose safety of AL-208 in order to evaluate the drug as a treatment for diseases or injuries where multiple doses are required.
In addition, Allon completed additional pre-clinical work to better define the pharmacokinetics and pharmacodynamics of AL-108, as well as to broaden further its safety profile. In a Phase I study of AL-108 last year, the drug was safe and well-tolerated and no drug related events were reported. The next step for this drug is a Phase Ib human clinical trial to show multiple-ascending dose safety in patients most at risk for Alzheimer’s disease.
Also during the first quarter, the Company appointed Dr. Martin Barkin, one of Canada’s most respected biotechnology and life science executives, to the Board of Directors.
Gordon McCauley, President and CEO of Allon, said the Company continues to meet its milestones and advance the clinical promise of Allon’s technology, which comprises a unique portfolio of drug compounds to treat the causes of neurodegenerative conditions.
“We are executing our milestones while using our financial resources in a prudent manner,” said McCauley. “Allon remains on track to achieve all of our published milestones for this year. To do this in such a focussed and financially responsible manner is good news for our shareholders and the millions of people around the world suffering from neurodegenerative conditions.”
For the quarter ended March 31, 2006, the Company reported a net loss of $1,644,839 ($0.05 per share) compared to a loss of $1,203,815 ($0.04 per share) for the same period in 2005. The loss before the effect of income tax recovery was $1,794,376 compared to $1,677,899 in 2005. The increased pre-tax loss of $116,477 related to lower than expected drug development costs offset by increased administrative costs required to support Allon’s drug development programs.
For the three month period ended March 31, 2006, research and development expenses were $1,175,031 compared to $1,315,715 in Q1 2005. The decrease of $140,684 over Q1 2005 relates to lower than expected clinical trial and drug development expenses due to the timing of major activities.
Significant achievements in the quarter included initiation of dosing for the AL-208 Phase Ib trial on March 27th, 2006, preparation for the AL-208 Phase II trial and completion of pre-clinical work for AL-108 prior to initiation of a Phase Ib trial for that drug.
For the three month period ended March 31, 2006, general and administrative expenses were $531,247 compared to $320,895 in Q1 2005. The $210,352 increase over Q1 2005 relates to increased staff and infrastructure required to support Allon’s drug development programs and compensation expenses incurred in the quarter but related to the achievement of 2005 milestones. General and administrative costs are expected to decrease in Q2 2006.
At March 31, 2006, the Company had cash and short-term investments of $7,308,466 compared to $9,519,838 at December 31, 2005. The Company believes that its cash and short-term investments as at March 31, 2006 and expected interest income will be sufficient to fund operations and commitments into the second half of 2007.
Allon Therapeutics Inc. is a Canadian biotechnology company developing drugs that protect against neurodegenerative conditions such as Alzheimer’s disease, mild cognitive impairment, stroke, traumatic brain injury, multiple sclerosis and neuropathy. The company is listed on the Toronto Stock Exchange under the trading symbol “NPC” (Neuro Protection Company) and based in Vancouver.