Orbus Pharma Inc.

Orbus Pharma Inc.

March 31, 2006 17:15 ET

Orbus Pharma Inc. Reports 2005 Results

TORONTO, ONTARIO--(CCNMatthews - March 31, 2006) -

(All amounts in thousands of Canadian dollars, except per share data)

Orbus Pharma Inc. (TSX:ORB) reported that the net loss for the year ended December 31, 2005 was $6,813 ($0.22 per share) compared to net loss of $5,266 ($0.17 per share) in 2004. The net loss for the fourth quarter was $1,722 ($0.05 per share) compared to net loss of $2,239 ($0.07 per share) in 2004.

Three Months Ended Twelve Months Ended
December 31 December 31
(thousands of dollars
except per share data) 2005 2004 2005 2004

Revenues $ 308 $ (71) $ 2,909 $ 3,199
Net loss (1,722) (2,239) (6,813) (5,266)
Net loss per share (0.05) (0.07) (0.22) (0.17)

Cash provided by
(used in)
Continuing operations (938) (471) (4,244) (3,632)
Discontinued operations (23) 3 (47) (317)
Investing activities 249 (206) (7) (2,661)
Financing activities (67) 5,233 266 5,068

Revenues decreased by 9% to $2,909 in 2005 from $3,199 in 2004. Revenue from manufacturing activities increased during the year to $1,347 from $542 in 2004, an increase of 149%. Administrative and selling expenses decreased to $2,110 in 2005 from $2,282 in 2004 and are mainly attributable to the closing of our Calgary office in May 2005. Research and development expenditures increased to $1,555 in 2005 from $994 in the prior year and are directly attributable to increased activity on our drug development projects.

Corporate update

To date in 2006 Orbus has been successful in signing five new licensing and supply agreements on our drug development projects. Two were signed on our oxcarbazepine project, two on cefuroxime axetil and one on our anti-depressant drug development amitryptaline (as detailed in the press releases dated February 9 and 16, 2006). The Company also received its first production order for its Cambridge antibiotics manufacturing facility worth approximately $250,000. The Company added a new drug development project to its portfolio and is now working on seven generic drug development projects. The Company is expecting regulatory approval in Europe on two of these before year end 2006. On March 24th the Company announced that it had arranged a private placement financing which is anticipated to raise gross proceeds of approximately $5 million. Closing is expected before the end of April 2006.

Forward looking statements

Certain statements in this disclosure are "forward-looking statements", which reflect management's expectations regarding the Company's future growth, results of operations, performance and business prospects and opportunities. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Many factors could cause results to differ materially from the results discussed in the forward-looking statements, including risks related to dependence on key suppliers, economic conditions, competition, regulatory change, foreign exchange rates, and interest rates, among others. Although the forward-looking statements are based on what management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements.

Orbus Pharma Inc., listed on The Toronto Stock Exchange under the symbol ORB, pursues a strategy of generating revenue through the licensing of generic drug developments as well as the manufacturing and selling of pharmaceutical products.

Contact Information

  • Orbus Pharma Inc.
    Denis C. Arsenault
    V.P. Finance and Chief Financial Officer
    (905) 943-9444
    Orbus Pharma Inc.
    Jeffrey W. Renwick
    President and Chief Executive Officer
    (905) 943-9444