EquiTech Corporation

EquiTech Corporation

March 21, 2005 08:30 ET

EquiTech Corporation Announces Year-End Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: EQUITECH CORPORATION

TSX VENTURE SYMBOL: EQT

MARCH 21, 2005 - 08:30 ET

EquiTech Corporation Announces Year-End Results

EDMONTON, ALBERTA--(CCNMatthews - March 21, 2005) - EquiTech Corporation
(TSX VENTURE:EQT) ("EquiTech"), a specialty pharmaceutical company
focused on improving the effectiveness of existing drug medications,
today announced audited financial results for the year ended December
31, 2004. EquiTech's lead drug is ZAG-1701 an ibuprofen caplet designed
to be swallowed whole with water and break apart in the stomach within
minutes. A recently completed clinical trial in patients experiencing
the pain of wisdom tooth removal showed that ZAG-1701 is absorbed into
the blood stream significantly faster than a leading over-the-counter
ibuprofen tablet. With increased costs associated with this successful
Phase II clinical trial of ZAG-1701, EquiTech reported a net loss of
$1,026,100 or ($0.08) per share for the year ended December 31, 2004,
compared to a net loss of $802,160 or ($0.12) per share for 2003.

"This past year's efforts and achievements have been very positive and
have allowed us to move forward with our business plan," said James
Chivers-Wilson, EquiTech's President and CEO. "Significant progress was
made on our new and improved ibuprofen caplet, ZAG-1701. The results of
the clinical trial achieved our most optimistic expectations about how
fast it would be absorbed into the blood stream when a person is in
pain. This year, we will focus our efforts on raising additional
financing to advance ZAG-1701 into a Phase III clinical trial. We will
continue to develop and expand our product pipeline and we will pursue
all opportunities that can accelerate our growth strategy."

Research and development expenses for 2004 were $511,376, an increase of
$142,694 from 2003. Total expenses for 2004 were $1,029,161 compared to
$804,614 for 2003. Cash and equivalents at December 31, 2004 were
$291,479 compared to $41,461 at December 31, 2003.

Highlights of the year

- Positive clinical trial results for ZAG-1701 after successful
manufacturing of the product and FDA approval to proceed.

- Raised an additional $1.4 million from a successful rights offering
and private placements.

- Work continued on reformulation of a number of other drug candidates.

- Continued implementation of an intellectual property strategy to
protect our products and innovative processes through various ongoing
and new patent applications.

Additional financing will be required to complete the development and
commercialization of the company's lead compound ZAG-1701, and several
financing alternatives are currently under consideration.

EquiTech's lead compound, ZAG-1701, a fast-absorbing ibuprofen caplet,
has been developed using the Company's patent-pending absorption
enhancing technology. ZAG-1701 is designed for the treatment of moderate
acute aches and pain. The worldwide pain medication market is estimated
at more than US$38 billion and is projected to reach US$75 billion by
2010.

EquiTech's Annual General Meeting will be held on Monday May 16, 2005 at
1:00pm MST at the Telus Centre for Professional Development, Edmonton,
Alberta.

About EquiTech Corporation

EquiTech Corporation is a specialty pharmaceutical company with patent
pending technology to create and develop better absorbing pharmaceutical
products that are taken orally. EquiTech trades on the TSX Venture
Exchange under the symbol EQT and currently has approximately 14.3
million common shares outstanding. For further information, visit
www.equitechcorporation.com.

This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The
securities of the corporation have not been and will not be registered
under the U.S. Securities Act, 1933, as amended and subject to certain
exemptions may not be offered or sold in the United States or to U.S.
persons. The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. This press
release may contain forward-looking statements, i.e. information that is
not strictly historical, concerning EquiTech's business and prospects.
Forward-looking statements are subject to a number of risks and
uncertainties. Actual events and results may differ materially from
those discussed in this press release, due to factors including
research, development, commercial and market risks.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    EquiTech Corporation
    James A. Chivers-Wilson
    President & CEO
    (780) 430-1633
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this press release.