Neurochem reports results for fourth quarter and fiscal year 2007 and important advances on corporate objectives
Wednesday February 20, 7:12 pm ET
Neurochem will host a conference call Thursday, February 21, 2008, at 8:30 A.M. ET.
LAVAL, QC, Feb. 20 /PRNewswire-FirstCall/ - Neurochem Inc. (NASDAQ: NRMX - News; TSX: NRM - News) reports results for the fourth quarter and fiscal year ended December 31, 2007, and announces important advances regarding the Company's pharmaceutical and nutraceutical activities. The Company reports, for the fourth quarter, a net loss of $16,097,000 ($0.33 per share), compared to $17,011,000 ($0.44 per share) for the corresponding period in the previous year. For the year ended December 31, 2007, the net loss amounted to $81,486,000 ($1.85 per share), compared to $66,469,000 ($1.72 per share) for the same period last year. The net loss for the year ended December 31, 2007, includes a non-recurring charge in the second quarter of fiscal 2007 under Canadian GAAP of $10,430,000 relating to the $40 million 5% senior subordinated convertible notes, which were fully converted into common shares during the second quarter of 2007. In total, accretion expense amounted to $15,751,000 for the year ended December 31, 2007. As at December 31, 2007, the Company had available cash, cash equivalents and marketable securities of $58,672,000, compared to $48,758,000 at December 31, 2006. All figures are in U.S. dollars, unless otherwise specified.
Furthermore, the Company is pleased to announce the following important developments:
- The regulatory submission for the initiation of the Phase II clinical
trial with the investigational product candidate NC-503 in patients
with Type II Diabetes as well as certain features of Metabolic Syndrome
was accepted by the Therapeutic Products Directorate of Health Canada.
As a result, the first patient is expected to be enrolled shortly. The
key objectives of the study are to investigate the safety and proof-
of-concept efficacy of NC-503 on glycemic measures.
- In order to more accurately reflect the Company's expanded business
strategy and core programs that encompass both therapeutics and branded
nutraceutical products, and following the approval by Neurochem's Board
of Directors, the name-change from Neurochem to BELLUS HEALTH(TM),
pending shareholder approval at the next annual meeting.
- Approval by Neurochem's Board of Directors for the creation of
subsidiaries for the purposes of carrying on the Company's
nutraceutical business, and as part of these new developments, the
nutraceutical business will be named OVOS NATURAL HEALTH(TM).
- An amendment under the Equity Line of Credit Facility, extending the
term to February 2010. The minimum draw-down obligation by the Company
has been reduced to $15,000,000 over the term. The maximum amount of
each monthly draw-down is limited to the lower of $6,000,000 or
12.5% of the volume-weighted price calculation of the common shares at
the time of draw-down. The common shares will be issued at a discount
of 4.0% to market price if the volume-weighted average price (VWAP)
per share is $6 or higher and 7% if the VWAP per share is lower than $6
at the time of draw-down.
"Neurochem is making significant progress in the implementation of the strategy that aims to make homotaurine available to consumers. Our drive towards the commercialization of this brand under the leadership of Mr. Gary Schmid as CEO of our nutraceutical business is geared towards potentially selling homotaurine via the Internet as early as the second quarter of 2008 and made available at retail in Canada during the third quarter of 2008," said Dr. Francesco Bellini, Chairman, President and CEO of Neurochem. "With respect to our pharmaceutical activities, we are continuing to accelerate the development of our product candidates in the field of Diabetes and Alzheimer's disease and closely working with the regulatory agencies in Europe and the United States to hopefully be in a position to make KIACTA(TM) available to patients suffering from Amyloid A (AA) amyloidosis. The launch of a Phase II study for NC-503 as a treatment for Type II Diabetes as well as certain features of Metabolic Syndrome is very encouraging. As a natural extension of our work in the field of AA amyloidosis, we start with a solid base of knowledge and research already completed," Dr. Bellini concluded. http://biz.yahoo.com/prnews/080220/mo322.html?.v=1