Mistral Pharma Inc.
TSX VENTURE : MIP

Mistral Pharma Inc.

August 25, 2006 14:38 ET

Mistral Pharma Announces its Financial Results for the Three-Month Period Ended June 30, 2006

MONTREAL, QUEBEC--(CCNMatthews - Aug. 25, 2006) - Mistral Pharma Inc. (TSX VENTURE:MIP) (the "Corporation", "Mistral") announces today its financial results and review of operating highlights for the three-month period ended June 30, 2006. "The highlight of the quarter is certainly the completion of the $5 million private placement initiated in March 2006 as the remaining $4.5 million was closed in May 2006. This financing will provide Mistral with sufficient financial resources to accelerate the development of our branded product line" said Mr. Bertrand Bolduc, the Corporation's President & CEO.

Results for the three-month period ended June 30, 2006

The loss for the quarter was $604,712 ($0.00 per share) compared to $705,725 for the same period in 2005 ($0.01 per share). The reduced loss for the quarter compared to the previous year is the result, for a third consecutive quarter, of the positive impact of the GSK contract termination. This helped bring the R&D expenses net of tax credits to $175,250 compared to $337,557 for 2005, a decrease of 52%. The stock-based compensation expense of $140,060 for the quarter compared to $51,195 for the same period a year earlier reflects the grant of options to employees during the quarter and reduces the positive impact of the lower R&D expenses mentioned above.

Administration and business development expenses totaled $274,681 compared to $283,035 for the same quarter in 2005. The lower expenses in the current quarter are more a result of the timing in recognizing certain expenses as the level of expenses for administration and business development for the year should be similar or higher than they were in the previous year. Net financial expenses were in the revenue category at $(6,129) for this quarter compared to an a net expense of $28,030 for the same period in 2005, reflecting the higher interest revenues generated from the funds raised in the quarter and the lower interest on the GSK debenture that was reimbursed in January 2006.

As at June 30, 2006, the Corporation had cash and cash equivalents of $4,092,717 compared to $1,703,177 as at June 30, 2005. As was mentioned above, Mistral completed the last tranche of its $5,000,000 private financing in May 2006; issuing 90,000,000 shares at $0.05 per share for a total consideration of $4,500,000. This financing brought in a net proceed of $3,944,016 after deducting the share issuance expenses of $555,984. During the three-month period ending June 30, 2006, Mistral continued the development of its branded products, repaid a promissory note of $135,000 that was outstanding as at March 31, 2006 and purchased certain R&D equipment.



Selected Financial Information Three months ended
June 30(th)
2006 2005
(Unaudited) (Unaudited)
--------------------------------------------------------------------
--------------------------------------------------------------------
$ $
Expenses
Research and development costs 175,250 337,557
Administration 233,793 260,823
Business development 40,888 22,212
Stock-based compensation 140,060 51,195
Interest (6,129) 28,030
Exchange gain (27,070) (28,957)
Amortization & other 47,920 34,865
--------------------------------------------------------------------
Net loss 604,712 705,725
--------------------------------------------------------------------
--------------------------------------------------------------------

Deficit, beginning 9,459,019 6,642,193
Share issue costs 1,188,737 777,544
--------------------------------------------------------------------
Deficit, end 11,252,468 8,125,462
--------------------------------------------------------------------
--------------------------------------------------------------------
Net loss per share basic and diluted 0.00 0.01
--------------------------------------------------------------------
--------------------------------------------------------------------
Weigthed average number of common
shares outstanding 126,976,849 48,557,839

2006-06-30 2006-03-31
(Unaudited) (Audited)
--------------------------------------------------------------------
--------------------------------------------------------------------
$ $
Assets
Cash and Cash equivalent 4,092,717 966,552
Receivable and other current assets 259,776 162,451
--------------------------------------------------------------------
4,352,493 1,129,003
Equipment 1,411,609 1,383,307
Deposit 223,000 233,420
Intangible and other assets 857,702 850,397
--------------------------------------------------------------------
6,844,804 3,596,127
--------------------------------------------------------------------
--------------------------------------------------------------------
Liabilites
Accounts payable and accrued liabilities 318,271 291,115
Other current liabilities - 135,000
Current portion of long term debt 429,752 434,783
--------------------------------------------------------------------
--------------------------------------------------------------------
748,023 860,898
Long term debt 695,289 813,101
Shareholders' Equity
Share capital 14,449,863 9,949,863
Contributed surplus 2,204,097 1,431,284
Deficit (11,252,468) (9,459,019)
--------------------------------------------------------------------
5,401,492 1,922,128
--------------------------------------------------------------------
--------------------------------------------------------------------
6,844,804 3,596,127
--------------------------------------------------------------------
--------------------------------------------------------------------


About Mistral Pharma Inc.

Mistral Pharma is a pharmaceutical product development and drug delivery company and its first branded product, MIST-B01, showed positive results at its first pilot clinical trial. Mistral is also working on two control-delivery branded products. Mistral positions itself as a development partner for specialty pharmaceutical companies. Additional information about Mistral Pharma can be obtained on Mistral Pharma's website at www.mistralpharma.com

Forward-looking Statements

Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of Mistral Pharma. These statements are based on assumptions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for Mistral Pharma's products, the impact of price pressures exerted by competitors, results from clinical studies and regulatory approval process as well as general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Mistral Pharma Inc.
    Bertrand F. Bolduc, B.Pharm., MBA
    President and Chief Executive Officer
    (514) 920-0909 Ext. 24
    bbolduc@mistralpharma.com
    or
    Mistral Pharma Inc.
    Alain Provencher, CA
    Vice-President and Chief Financial Officer
    (514) 920-0909 Ext. 22
    aprovencher@mistralpharma.com