EXHIBIT NO. 99.1
ALTAREX ANNOUNCES FINANCIAL RESULTS FOR FOURTH QUARTER AND FULL YEAR 2001
WALTHAM, Mass., Feb. 26 /CNW/ -- AltaRex Corp. (AXO.TO, ALXFF.OTC), a developer
of foreign antibodies that activate the immune system to treat cancer, announced
its financial results for the fourth quarter and year ended December 31, 2001.
All dollars reported are Canadian.
The Company recorded a net loss of $10.1 million, or $0.31 per share, for the
three months ended December 31, 2001 compared to a net loss of $5.4 million, or
$0.29 per share, for the same period in 2000. For the year ended December 31,
2001, the Company recorded a net loss of $33.8 million, or $1.21 per share,
compared to a net loss of $17.7 million, or $1.08 per share, for the same period
in 2000. The increased net loss in both periods is due primarily to the
increased spending in manufacturing and clinical development for the Company's
lead product, OvaRex(R) MAb (oregovomab) for ovarian cancer.
At December 31, 2001, the Company's cash, cash equivalents and short-term
investments totaled $9.1 million as compared to $13.3 million at December 31,
2000. The Company is currently pursuing corporate alliances and financing
options required to continue to fund its operations and, in particular, to fund
the necessary manufacturing and clinical development to support a anticipated
filing for regulatory approval of OvaRex(R) MAb with the U.S. Food and Drug
Administration (FDA).
"The recently announced results from our 345-patient phase IIb trial
demonstrated statistically significant OvaRex(R) efficacy in a well-defined
patient population, along with safety and quality of life. We believe these lead
study results, together with results from supportive OvaRex(R) clinical studies,
will provide a basis for applying for regulatory approval of OvaRex(R) under
Fast Track and accelerated approval provisions of the FDA," commented Richard E.
Bagley, President and CEO of AltaRex. "On that basis, we intend to continue our
development program and believe we will raise the capital necessary to do so."
More about AltaRex research and development, clinical trials, news and events
can be found on the Company website www.altarex.com.
This news release contains forward-looking statements that involve risks and
uncertainties, which may cause actual results to differ materially from the
statements made. For this purpose, any statements that are contained herein that
are not statements of historical fact may be deemed to be forward- looking
statements. Without limiting the foregoing, the words "believes," "anticipates,"
"plans," "intends," "expects" and similar expressions are intended to identify
forward-looking statements. Such risks and uncertainties include, but are not
limited to our need for capital and the risk that the Company can not raise
funds on a timely basis on satisfactory terms or at all, the need to obtain
corporate alliances and the risk that the Company cannot establish corporate
alliances on a timely basis, on satisfactory terms, or at all, changing market
conditions, uncertainties regarding the timely and successful completion of
clinical trials, patient enrollment rates, uncertainty of pre-clinical,
retrospective, early and interim clinical trial results, which may not be
indicative of results that will be obtained in ongoing or future clinical
trials, whether the Company will file for regulatory approval on a timely basis,
uncertainties as to when, if at all,
the FDA will accept or approve the Company's regulatory filings for its
products, the need to establish and scale-up manufacturing processes,
uncertainty as to the timely development and market acceptance of the Company's
products, uncertainty as to whether patents will issue from pending patent
applications and, if issued, as to whether such patents will be sufficiently
broad to protect the Company's technology, and other risks detailed from
time-to-time in the Company's filings with the United States Securities and
Exchange Commission and Canadian securities authorities. The Company does not
assume any obligation to update any forward-looking statement.
THE TORONTO STOCK EXCHANGE HAS NOT APPROVED OR DISAPPROVED OF THE INFORMATION
CONTAINED HEREIN.
Financial Tables To Follow
Condensed Consolidated Statement of Operations
(In Canadian dollars, Unaudited)
Three months ended Year ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2001 2000 2001 2000
Revenues $ 69,737 $ 81,807 $ 523,095 $ 389,826
Expenses
Research &
development 8,361,566 3,586,631 26,919,785 12,022,218
General &
administration 1,803,827 1,895,316 7,405,677 6,091,686
10,165,393 5,481,947 34,325,462 18,113,904
Net loss for
the period $(10,095,656) $ (5,400,140) $(33,802,367) $(17,724,078)
Net loss per
common share $ (0.31) $ (0.29) $ (1.21) $ (1.08)
Weighted average
number of common
shares outstanding 32,473,156 18,854,087 27,962,625 16,433,031
Condensed Consolidated Balance Sheet
(In Canadian dollars, Unaudited)
As of, As of
Dec.31 Dec. 31,
2001 2000
ASSETS
Cash and cash equivalents $ 8,211,313 $ 9,665,187
Short-term investments 856,051 3,591,323
Other current assets 853,152 429,704
Capital assets, net 634,870 490,115
Other assets 235,671 578,227
Total assets $10,791,057 $14,754,556
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 7,383,751 $ 3,793,766
Total shareholder's equity 3,407,306 10,960,790
Total liabilities and
shareholders' equity $10,791,057 $14,754,556
For further information
Peter Gonze, Operations/Investor Relations, +1-781-672-0138 ext. 1503,
pgonze@altarex.com or Sondra Henrichon, Investor Relations, +1-781-672-0138
ext. 1510, shenrichon@altarex.com, both of AltaRex Corp.