Allon Therapeutics Inc.
TSX : NPC

Allon Therapeutics Inc.

November 14, 2006 18:30 ET

Allon Therapeutics Releases Third Quarter Operating Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 14, 2006) - Allon Therapeutics Inc. (TSX:NPC), The Neuro Protection Company™, reported today in its third quarter 2006 operating results that it continued to achieve all of its milestones during the quarter, including the approval from Health Canada to allow the company to begin recruiting Canadian patients into an ongoing U.S. Phase II human clinical trial.

The Phase II trial is evaluating the Company's product AL-208 as a treatment for the mild cognitive impairment (MCI) that commonly occurs following coronary artery bypass graft (CABG) surgery. This Phase II trial comes after two Phase I trials have shown Allon's drugs to be safe and well tolerated in more than 100 subjects.

Other achievements during the quarter included the initiation of patient dosing for a Phase Ib human clinical trial evaluating the safety, tolerability and pharmacokinetics of AL-108 as a treatment for Alzheimer's disease. Subsequent to the end of the quarter, on November 1, 2006 the Company announced that patient dosing was completed. Successful completion of this trial allows the Company to remain on track to commence a Phase II trial in an Alzheimer's related condition before the end of 2006.

Subsequently, on November 14, 2006 the Company announced that it has successfully concluded a first closing of a private placement, generating total gross proceeds of $9.0 million. Gordon McCauley, President and CEO of Allon said the achievements in the quarter in combination with the financing put the Company in a strong position to achieve significant clinical and corporate milestones.

"We continue to execute on our defined milestones because we make sound decisions when it comes to allocating our resources," McCauley said. "This financing will enable Allon to remain on track to achieve the rest of our milestones this year and allow the company the opportunity to complete the ongoing Phase II trial in MCI-CABG as well as a Phase II trial in an Alzheimer's related condition."

"This financing is important for the Company and our shareholders." McCauley said. "Over the remainder of 2006 and into 2007 shareholders will continue to see a company spending its money wisely and advancing clinical programs to create shareholder value."

RESULTS OF OPERATIONS

For the three months ended September 30, 2006, Allon reported a net loss of $1,975,807 ($0.06 per share) compared to a net loss of $1,492,248 ($0.05 per share) for the three months ended September 30, 2005 Q3 2005). For the nine months ended September 30, 2006 (YTD 2006), Allon reported a net loss of $5,604,981 ($0.17 per share) compared to a net loss of $3,957,259 ($0.14 per share) for the nine months ended September 30, 2005 (YTD 2005).

LIQUIDITY AND CAPITAL RESOURCES

At September 30, 2006, the Company had working capital of $3.4 million and cash resources of $3.8 million consisting of cash and short-term investments. Aggregate cash resources decreased by $5.8 million, from $9.5 million at December 31, 2005, to support continuing clinical studies, research and development initiatives with no cash inflows from financing activities.

Subsequent to the close of the quarter ended September 30, 2006, the Company issued 11,250,000 common shares and 5,625,000 common share purchase warrants to raise $9.0 million in the first closing of a private placement. The Company believes that this additional capital, cash and short-term investments as at September 30, 2006, and expected interest income will be sufficient to fund operations and contractual obligations to the middle of 2008.

About Allon

Allon Therapeutics Inc. is a clinical-stage Canadian biotechnology company developing drugs that protect against neurodegenerative conditions such as Alzheimer's, cognitive impairment, stroke, traumatic brain injury, multiple sclerosis and neuropathy. The Company is listed on the Toronto Stock Exchange under the trading symbol "NPC" (Neuro Protection Company™) and based in Vancouver.

Forward Looking Statements

There are forward-looking statements contained herein that are not based on historical fact, including without limitation statements containing the words "believes," "may," "plans," "will," "estimate," "continue," "anticipates," "intends," "expects," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, Allon's stage of development, lack of product revenues, additional capital requirements, risks associated with the completion of clinical trials and obtaining regulatory approval to market Allon's products, the ability to protect its intellectual property and dependence on collaborative partners. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.


Contact Information

  • Allon Therapeutics Inc.
    Investor and Media contact: Aaron Keay
    Manager, Investor Relations
    (604) 742-2540
    Cell: (604) 323-6911
    Email: akeay@allontherapeutics.com