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CONTACTS:
LORUS THERAPEUTICS INC. CANADIAN MEDIA CONTACT: US MEDIA CONTACT:
Corporate Communications Hugh Mansfield Jennifer Taylor
Grace Tse Mansfield Communications Inc. Mansfield Communications Inc.
Tel: (416) 798-1200, ext.380 Tel: (416) 599-0024 Tel: (212) 370-5045
Email:ir@lorusthera.com Email: hugh@mcipr.com E-mail: jennifer@mcipr.com
TSX: LOR
OTCBB: LORFF
LORUS THERAPEUTICS REPORTS FIRST QUARTER RESULTS FOR FISCAL YEAR 2004
TORONTO, CANADA - OCTOBER 10, 2003 - Lorus Therapeutics Inc. ("Lorus") today
reported financial results for the quarter ended August 31, 2003. Unless
specified otherwise, all amounts are in Canadian dollars.
JUNE 1, 2003 TO DATE HIGHLIGHTS
o Raised net proceeds of approximately $30 million by way of a public
offering of units at a price of $1.25 per unit with each unit consisting of
one common share and one-half of one purchase warrant.
o Expanded the pivotal phase III clinical trial of its lead immunotherapeutic
drug Virulizin(R) for the treatment of advanced pancreatic cancer to over
100 global sites covering Europe, North America, South America and Latin
America
o Entered into a worldwide exclusive out-licensing agreement with Cyclacel
Limited of the UK for NC381 and a library of clotrimazole analogs for an
upfront fee of US$0.4 million with potential of up to approximate US$11.6
million of milestone payments if all milestones achieved and a royalty line
on future sales for NC381. Similar milestone and royalty payments will be
received for each of any other compounds developed from the library
o Initiated three of the six clinical trials of a phase II clinical program
of GTI-2040 in collaboration with the US National Cancer Institute (NCI)
the first for patients with Acute Myeloid Leukemia (AML); a second for
patients with metastatic breast cancer and a third for patients with
non-small cell lung cancer.
o Allowed various patents from U.S., Canada and Europe to further protect
Lorus' intellectual properties including Virulizin(R) , "U-sense", a novel
anticancer technology and certain molecules that inhibit cancer progression
characterized by abnormal vascularization
o Published various papers by Lorus scientists in prominent scientific
journals and made presentations at some of the most influential gatherings
and meetings in the cancer research field.
"We continue to build momentum in enhancing shareholder values by focusing on
the strategic objectives. Out-licensing of NuChem NC381 and a library of
clotrimazole analogs facilitates the further development of this technology with
a world-class expert while allowing Lorus to focus its resources on its advanced
clinical programs and other promising preclinical technologies," said Dr. Jim
Wright, C.E.O,
"And the successful closing of the recent public offering enhanced our capital
position, enabled us to continue to advance and expand our research and clinical
programs and strategically positioned us well for ultimate commercial success."
Net loss for the quarter ended August 31, 2003 totaled $8,171,000 ($0.05 per
share) compared to a loss of $4,076,000 ($0.03 per share) for the same quarter
last year. The increase in net loss relates primarily to higher research and
development expenses.
Research and development expenses for the quarter ended August 31, 2003
increased to $7,263,000 compared to $3,047,000 for the same quarter last year.
The cost increase in fiscal 2004 can be attributed primarily to higher clinical
trial costs for the expansion of the pivotal Phase III trial of Virulizin(R) for
the treatment of advanced pancreatic cancer to over 100 worldwide sites, the
upfront supplying of GTI-2040 drug to the NCI for the NCI sponsored phase II
clinical trial programs and the expanded GTI-2040 phase II trial in patients
with renal cell carcinoma.
General and administrative expenses for the first quarter of fiscal 2004
remained relatively unchanged year over year with a marginal decrease of
$73,000.
Depreciation and amortization for the first quarter of fiscal 2004 was $99,000,
comparable with $95,000 for the same quarter last year.
Interest income for the quarter ended August 31, 2003 increased to $393,000 from
$370,000 for the same quarter last year. The increase can be attributed
primarily to higher cash and short-term investment balance partially offset by
lower market interest rates in fiscal 2004.
At August 31, 2003 Lorus had cash and cash equivalents and short-term
investments totaling $49.0 million compared to $25.1 million at May 31, 2003.
Working capital was $43.0 million at August 31, 2003 compared to $20.9 million
at May 31, 2003.
CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT (UNAUDITED)
THREE MONTHS Three months Period from inception
(Amounts in 000's except for per common share data) ENDED ended Sept. 5, 1986 to
(Canadian Dollars) AUG. 31, 2003 Aug. 31, 2002 Aug. 31, 2003
------------- ------------- ---------------------
REVENUES ............................... $ 29 $ -- $ 95
--------- --------- ---------
29 -- 95
--------- --------- ---------
EXPENSES
Cost of Sales .......................... -- -- 55
Research and development ............... 7,263 3,047 66,322
General and administrative ............. 1,231 1,304 34,109
Depreciation and amortization .......... 99 95 8,460
--------- --------- ---------
OPERATING EXPENSES ..................... 8,593 4,446 108,946
--------- --------- ---------
INTEREST AND OTHER INCOME .............. (393) (370) (9,177
--------- --------- ---------
LOSS FOR THE PERIOD .................... 8,171 4,076 99,674
THREE MONTHS Three months Period from inception
(Amounts in 000's except for per common share data) ENDED ended Sept. 5, 1986 to
(Canadian Dollars) AUG. 31, 2003 Aug. 31, 2002 Aug. 31, 2003
------------- ------------- ---------------------
Deficit, beginning of period ........... 91,503 74,869 --
--------- --------- ---------
DEFICIT, END OF PERIOD ................. $ 99,674 $ 78,945 $ 99,674
--------- --------- ---------
BASIC AND DILUTED LOSS
PER COMMON SHARE ..................... $ 0.05 $ 0.03
--------- ---------
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING USED IN THE CALCULATION
OF BASIC AND DILUTED LOSS PER SHARE .. 171,517 144,416
--------- ---------
As Lorus is having its Annual General Meeting of the shareholders on November
20, we will not hold a conference call to discuss the operating results of this
quarter. Lorus always welcomes the shareholders, the financial community and the
general public to contact us at any time.
About Lorus
Lorus Therapeutics Inc. is a biopharmaceutical company specializing in the
research, development and commercialization of pharmaceutical products and
technologies for the management of cancer. With products in all stages of
evaluation, from pre-clinical through Phase III trials, and a product approved
in Mexico for malignant melanoma, Lorus is a leader in the development of
therapeutics that seek to manage cancer with efficacious non-toxic compounds
that improve patients' quality of life. Founded in 1986, Lorus Therapeutics Inc.
is a public company listed on the Toronto Stock Exchange under the symbol LOR,
and on the OTC BB exchange under the symbol LORFF. Lorus Therapeutics Inc.'s
press releases are available through the Company's Internet site:
http://www.lorusthera.com.
Except for historical information, this press release contains forward-looking
statements, which reflect the Company's current expectation regarding future
events. These forward-looking statements involve risks and uncertainties, which
may cause actual results to differ materially from those statements. Those risks
and uncertainties include, but are not limited to, changing market conditions,
the successful and timely completion of clinical studies, the establishment of
corporate alliances, the impact of competitive products and pricing, new product
development, uncertainties related to the regulatory approval process, and other
risks detailed from time-to-time in the Company's ongoing quarterly filings,
annual information form, annual reports and 40-F filings. We undertake no
obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. In light of these
risks, uncertainties and assumptions, the forward-looking events in this press
release might not occur.
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