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.

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
Managing mission-critical SAP systems and landscapes has never been easy. Add public cloud with its myriad of powerful cloud native services and this may not change any time soon. Public cloud offers exciting new possibilities for enterprise workloads. But to make use of these possibilities and capabilities, IT teams need to re-think everything they have done before. Otherwise, they will just end up using public cloud as a hosting platform for their workloads, aka known as “lift and shift.”
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
"We do one of the best file systems in the world. We learned how to deal with Big Data many years ago and we implemented this knowledge into our software," explained Jakub Ratajczak, Business Development Manager at MooseFS, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"Tintri focuses on the Ops side of the DevOps, which basically is pushing more and more of the accessibility of the infrastructure to the developers and trying to get behind the scenes," explained Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...