Welcome!

News Feed Item

Critical Outcome Technologies Inc. Reports Fiscal 2013 Second Quarter Financial Results

LONDON, ONTARIO -- (Marketwire) -- 12/21/12 -- Critical Outcome Technologies Inc. (COTI) (TSX VENTURE:COT) announced fiscal 2013 second quarter financial results today for the three and six months ended October 31, 2012.

"As we have outlined in the past, the Company has a two-pronged strategy for commercial validation of its underlying CHEMSAS® technology," said Dr. Wayne Danter, President and Chief Executive Officer. "The first strategy is to license a novel compound discovered and optimized using CHEMSAS® that has been successfully moved through preclinical testing as predicted. The second strategy is to enter into research and product development (R&D) collaboration agreements with third parties for therapeutic targets of interest to them. Both of these strategies progressed very well in the quarter."

"We continued our COTI-2 licensing initiatives during the quarter on a number of fronts, which included the engagement of a life science commercialization consulting firm to broaden the Company's reach, experience and effort with the licensing transaction. We believe the positive progress being made in both the scientific results for COTI-2 and our R&D collaboration programs highlighted below will provide momentum for success in this initiative," said Dr. Wayne Danter.

"While only modest revenue was received during the quarter under the collaboration agreements announced in September 2012, we are building shareholder value through the revenue "tails" of milestone payments and royalties that ensue from successfully completing these discovery, optimization and profiling collaborations," noted Dr. Danter. "These collaborations also expand the number and types of parties that can benefit from using CHEMSAS®, which is important in demonstrating the breadth and depth of CHEMSAS® as a drug discovery engine."

Financial Highlights

The Company reported a net loss of $762,669 or $0.01 per common share for the three months ended October 31, 2012 (Q2-F'13) compared to a net loss of $648,530 or $0.01 per common share for the comparable quarter ended October 31, 2011 (Q2-F'12). For the six months ended October 31, 2012 (YTD-F'13) the Company reported a net loss of $1,485,439 or $0.02 per common share compared to a net loss of $1,290,786 or $0.02 per common share for the six months ended October 31, 2011. The increased loss in the quarter of $114,139 and $194,653 for the six month period related to two major functional expense areas; R&D expenses increased by $113,453 in the quarter and $174,507 year to date and general and administration (G&A) expenses increased by $13,866 for the quarter and $39,270 year to date.

The R&D increase related primarily to R&D testing, consulting and materials, which increased $96,636 in the quarter (YTD-F'13 - $218,615) due to increased in vitro and in vivo testing of the Company's lead oncology asset, COTI-2. This increase was partially offset by a decrease in synthesis costs of $7,601 in the quarter (YTD-F'13 - $84,880).

The G&A increase related to two expense items; first, Q2-F'13 amortization costs increased by $11,901 (YTD-F'13 - $22,816) resulting from the grant of a patent for COTI-2 by the United States Patent Office in October 2011; and, second, share-based compensation increased $40,152 (YTD-F'13 - $41,356) due to share options granted to officers and a consultant. These increases were partially offset by a reduction in professional fees in the quarter of $31,294 (YTD-F'13 - $18,218) as the Company did not incur the consulting service fees associated with the required transition to International Financial Reporting Standards of 2012.

At the quarter end, the Company held cash, cash equivalents and short-term investments of $575,530. This balance reflected a decline of $1,143,141 since the April 30, 2012 year end with cash used in operating activities representing $1,166,047. "The Company is pursuing additional financing to sustain operations and execute on its business plan with an anticipated closing in the first quarter of calendar 2013," advised Dr. Danter.

Operational Highlights

The Company made steady progress in developing COTI-2 toward an investigational new drug filing leading to human clinical trials and a licensing transaction in the quarter. On September 18, 2012, the Company announced the initiation of the final series of toxicity experiments in two animal species using the oral formulation. On September 20, 2012, the Company announced the broadening of the mechanism of action (MOA) of COTI-2 beyond AKT inhibition. Previous preclinical MOA work clearly showed that COTI-2 modulated the PI3K/AKT/mTOR pathway. However, new data derived from gene profiling and in vitro testing indicates that COTI-2 is particularly effective in treating cancer cell lines with p53 mutations, an effect not associated with AKT inhibitors. "The effectiveness of COTI-2 based on the status of p53, a tumor suppressing gene, could make this compound and class an important new treatment for cancer, as at least 50% of human cancers harbor a p53 mutation. These findings improved the understanding of COTI-2's MOA and help clarify some of the positive results seen in earlier experiments and trials that were not explained by AKT inhibition alone," stated Dr. Danter.

Efforts in achieving R&D collaborations using the Company's proprietary CHEMSAS® platform with a variety of life science organizations culminated in the Company being able to announce two collaborations in the quarter; one with Western University on September 6, 2012 and another with Delmar Chemicals Inc. on September 12, 2012. Subsequent to the quarter end, the Company announced a third collaboration on December 6 with a multinational pharmaceutical company. "Success with these collaborations provides important commercial validation of CHEMSAS®, a source of revenue to the Company and illustrates the capability of the platform to function across multiple disease areas," noted Dr. Danter.

More detailed operating and financial results can be found in the Company's unaudited condensed interim financial statements and the Management Discussion and Analysis for the three and six months ended October 31, 2012, which can both be found on SEDAR at www.sedar.com. This material is also available on the Company's website at www.criticaloutcome.com.

Notice to Readers

Information provided in this press release may contain certain statements which constitute "forward-looking statements" within the meaning of the Securities Act (Ontario) and applicable securities laws. For example, the statement "Success with these collaborations provides important commercial validation of CHEMSAS®, a source of revenue to the Company and illustrates the capability of the platform to function across multiple disease areas..." and "could make this compound and class an important new treatment for cancer..." and "... pursuing additional financing to sustain operations and execute on its business plan with an anticipated closing in the first quarter of calendar 2013..." are forward-looking statements. These statements convey the Company's efforts to commercially validate CHEMSAS® and file a submission to enable human clinical trials to occur for its lead oncology compound and also efforts to obtain a licensing deal and financing, but COTI is not in a position at this time to determine when, or if these events will occur. Forward-looking statements, by their nature, are not guarantees of future performance and are based upon management's current expectations, estimates, projections and assumptions. Risks that could impact on these forward-looking statements are outlined in the Company's annual information form. Management of COTI considers the assumptions on which these forward-looking statements are based to be reasonable, but as a result of the many risk factors, cautions the reader that actual results could differ materially from those expressed or implied in these forward-looking statements.

About Critical Outcome Technologies Inc.

COTI is a leading-edge company specializing in accelerating the discovery of small molecules thus enabling these new drugs to be brought to market in a more cost effective, efficient and timely manner. COTI'S proprietary artificial intelligence system, CHEMSAS®, utilizes a series of predictive computer models to identify compounds most likely to be successfully incorporated in disease-specific drug discovery, as well as subsequent optimization and preclinical development. These compounds are targeted for a variety of diseases, particularly those for which current treatments are either lacking or ineffective. Upon confirming the predictions of CHEMSAS® through a series of preclinical tests, COTI seeks to license these compounds for further preclinical and clinical compounds.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Critical Outcome Technologies Inc. (COTI)
Mr. Gene Kelly
Chief Financial Officer
519-858-5157
[email protected]
www.criticaloutcome.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
HyperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let's say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it...
One of the biggest challenges with adopting a DevOps mentality is: new applications are easily adapted to cloud-native, microservice-based, or containerized architectures - they can be built for them - but old applications need complex refactoring. On the other hand, these new technologies can require relearning or adapting new, oftentimes more complex, methodologies and tools to be ready for production. In his general session at @DevOpsSummit at 20th Cloud Expo, Chris Brown, Solutions Marketi...
At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: implemen...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, provided a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services with...
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...