MONTREAL, Aug. 14 /PRNewswire-FirstCall/ - AKELA Pharma Inc., (TSX: AKL),a drug development company focused on developing therapies for the inhalation,pain and CNS markets, today announced financial results for the second quarterof fiscal 2007 ended June 30, 2007.
Akela's results of operations for the three and six month period endedJune 30, 2007 include the operations of PharmaForm since the date of itsacquisition on January 25, 2007. Akela's consolidated net loss for the secondquarter of 2007 was $7.1 million compared to $5.8 million for the segmentedPharma results for the same 2006 period. As of January 1, 2007 our functionaland reporting currency is now the US dollar.
"The second quarter and first half of fiscal 2007 were marked by some ofthe most significant corporate events to ever take place at Akela. We havesigned a European Union licensing agreement with Janssen Pharmaceutica NV. forour lead product Fentanyl TAIFUN(R), representing the best possible externalvalidation for our product, platform and technology. We have also continued todeliver strong and statistically significant clinical data from our productdevelopment programs such as AKELA's GHRH which has clinically demonstratedefficacy beyond our expectations. Based on the accomplishments of the firsthalf of 2007, we strongly believe the second half of 2007 will prove to be assuccessful as the first one. " said Dr Halvor Jaeger, Chief Executive Officerof Akela Pharma Inc.
The year-over-year increase in the net loss was due to a higher rate ofspending on research and development activities and selling, general andadministrative expenses.
Consolidated SG&A expenses totaled $4.1 million for the second quarter of2007 and $6.5 million year-to-date compared to $2.3 million and $4.1 millionfor the same respective 2006 periods.
R&D costs for the second quarter of 2007 were $4.6 million and $9.6million year-to-date compared to $2.5 million and $4.8 million for the samerespective 2006 periods. The year-to-date amount includes $1.6 million ofseverance expense and early termination charges relating to the exit of leasedpremises in Finland. The increase in spending is primarily attributable to thecosts associated with the advancement and finalization of the FentanylTAIFUN(R) Phase II trial program and the development of our productcandidates.
The consolidated net loss for the second quarter of 2007 was $7.1 million,or ($0.09) per share and $15.2 million or ($0.19) per share year-to-date,compared with a consolidated net loss for the former Pharma segment of $5.8million and $11.1 million respectively.
The Company had cash and cash equivalents as of June 30, 2007 of $12.1million. This does not include an additional $10.8 million received in July2007 from the signing of a licensing and development agreement with JanssenPharmaceutica NV for Fentanyl TAIFUN(R). This also compares with $35.3 millionas of December 31, 2006.
About Akela Pharma Inc.
Akela Pharma is an integrated drug development company focused ondeveloping therapies for the growing multi-billion dollar inhalation, pain andCNS markets. Its lead product, for the treatment of breakthrough cancer pain,is a fast-acting Fentanyl formulation delivered using the Company's TAIFUN(R)dry powder inhaler platform. Its pipeline also includes therapeutics forasthma, COPD, growth hormone deficiencies and abuse deterrent formulations forcontrolled substances.
Akela's common shares trade on The Toronto Stock Exchange ("TSX") underthe symbol "AKL" with 82.3 million shares outstanding.
This news release contains certain forward-looking statements that reflectthe current views and/or expectations of AKELA Pharma Inc. with respect to itsperformance, business and future events. Such statements are subject to anumber of risks, uncertainties and assumptions. Actual results and events mayva