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Arlington, VA | Tuesday, September 16, 2008

Champions Biotechnology Reports Fiscal 2009 First Quarter Financial Results

Oct 25 2011 2:34 PM

Champions Biotechnology, Inc. (OTC Bulletin Board: CSBR), a company engaged in the development of advanced preclinical platforms and tumor specific data to enhance the value of oncology drugs, reports its financial results for the first fiscal quarter ended July 31, 2008. Full details of the Company’s financial results are available in the Company’s Form 10-Q at www.championsbiotechnology.com.

Total revenues for the first quarter of 2009 increased to $673,117, or 169% compared to $250,000 for the same period in 2008. The Company derived its revenues primarily from its Personalized Oncology business.

Total operating expenses for the first quarter of 2009 were $861,315, an increase of 249% compared to $246,791 for the same period of last year. First quarter 2009 operating expenses included the following:

Research and development expenses of $217,163, an increase of 190% compared to $75,000 for the comparable prior period in fiscal 2008. The increase of $142,163 was primarily related to expenses for Tumorgraft acquisition and development and increased expenses related to the development of the Company’s lead oncology drug candidate, SG410.

The costs of personalized oncology and preclinical contract services were $259,600 for the quarter ended July 31, 2008 as compared to $80,562 in the quarter ended July 31, 2007.

General and administrative expenses in the first quarter of 2009 were $384,552 compared to $91,229 in the comparable quarter of 2008, an increase of $293,323 or 322%. Expenses increased as the Company grew its operational infrastructure including the addition of personnel, consultants and offices.

The Company reported a net loss of $167,482 or $0.01 per diluted shares for the first quarter of 2009 as compared to net income of $8,568 or $0.00 per diluted shares in the first quarter of 2008.

The Company’s cash position on July 31, 2008, was $3,494,872. During the first quarter of 2009, the Company used $212,159 in operating activities, $14,372 in investing activities and generated $12,267 in financing activities. The Company’s working capital as of July 31, 2008 was $2,672,380. 2

“We achieved our goals for growing and validating our Biomerk Tumorgraft™ preclinical platform during the first quarter and began generating revenue from its use in our Preclinical eValuation business,” stated Douglas Burkett, Ph.D., President of Champions Biotechnology, Inc. “We believe that Biomerk Tumorgrafts are predictive of Phase II clinical outcomes. Such predictive capability would represent a leap in preclinical technology. Our ultimate goal is to use our predictive platform to screen drug candidates and acquire or license the most promising candidates to build our own pipeline of high value oncology drugs. This is expected to be the leading value driver for the Company. We look forward to updating our shareholders as we move ahead.”

Highlights of the first quarter are:

  1. The Company grew its preclinical platform by expanding its Tumorgraft inventory and then propagating and storing banks of Biomerk Tumorgrafts for use in future analysis of oncology drugs.
  2. The growing platform of Biomerk Tumorgrafts enabled the Preclinical eValuation business to begin generating revenue. Biomerk Tumorgrafts are used to evaluate the efficacy of drug candidates pursuant to contracts with leading pharmaceutical companies.
  3. The Company advanced discussions, designed studies and prepared protocols for several of the world’s largest pharmaceutical companies; the Company anticipates that these relationships will result in future revenue for the Preclinical eValuation business.
  4. The Company began initiatives to grow its own drug development business. The Company is actively seeking preclinical stage oncology drug candidates that it may license or acquire based on evaluation of the drugs in its Biomerk Tumorgrafts. If candidates demonstrate efficacy in the Biomerk Tumorgraft models, the Company plans to advance them through preclinical trials and then sell or license the drug to, or partner with, leading pharmaceutical or biotech companies for the remaining clinical development. The Company believes that its Biomerk Tumorgraft preclinical platform is predictive of Phase II clinical trial results and therefore drug candidates that demonstrate efficacy in the model will significantly increase in value.

About Champions Oncology, Inc.

Champions Oncology, Inc. (formerly Champions Biotechnology, Inc) is engaged in the development of advanced technology solutions and services to personalize the development and use of oncology drugs. The Company’s Tumorgraft™ Technology Platform is a novel approach to personalizing cancer care based upon the implantation of primary human tumors in immune deficient mice followed by propagation of the resulting engraftments, or Tumorgrafts™, in a manner that preserves the biological characteristics of the original human tumor. The Company uses this technology in conjunction with related services to offer solutions for two customer groups: Personalized Oncology Solutions (“POS”) in which physicians and patients looking for information help guide the development of personalized treatment plans, and Translational Oncology Solutions (“TOS”) in which pharmaceutical and biotech companies seeking personalized approaches to drug development can lower the cost and increase the speed of developing new drugs and increasing the adoption of existing drugs. The Company’s Tumorgraft™ Technology Platform consists of processes, physical tumors and information that we use to personalize the development and use of oncology drugs. The Company is building its Tumorgraft™ Technology Platform through the procurement, development and characterization of numerous Tumorgrafts™ within each of several cancer types. Tumorgrafts™ are procured through agreements with a number of institutions in the U.S. and overseas as well as through its POS business. The Tumorgrafts™ are developed and tested through agreement with a United States-based preclinical facility.

The Company provides POS to oncologists by establishing and administering expert tumor panels for their patients to analyze medical records and test results, to assist in understanding conventional and experimental options and to identify and arrange for testing, analysis and study of the patients’ cancer tissues, as appropriate. Additionally, the Company offers Personalized Tumorgraft™ development, drug studies and genome sequencing as part of its POS whereby physicians can evaluate the effects of cancer drugs on their patients’ tumorgrafts and understand the genetic make-up of their patient’s tumor enabling them to better select treatment regimens that may be efficacious to the patient

This press release may contain “forward-looking statements” (within the meaning of the Private Securities Litigation Act of 1995) that inherently involve risk and uncertainties. Champions Oncology generally uses words such as “believe,” “may,” “could,” “will,” “intend,” “expect,” “anticipate,” “plan,” and similar expressions to identify forward-looking statements. One should not place undue reliance on these forward-looking statements. The Company’s actual results could differ materially from those anticipated in the forward-looking statements for many unforeseen factors. See Champions Oncology’s Form 10-K for the fiscal year ended April 30, 2011 for a discussion of such risks, uncertainties and other factors. Although the Company believes the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and Champions Oncology’s future results, levels of activity, performance or achievements may not meet these expectations. The Company does not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in Champions Oncology’s expectations, except as required by law.

References:

  1. Hidalgo M et al. Activity of gemcitabine in direct patient derived xenografts predicts clinical outcome: validation of an in vivo model for drug development. J Clin Oncol 27:15s, 2009 (suppl; abstr 4528)
  2. Hidalgo M et al. A Pilot Study of Treatment Guided by Personalized Tumorgrafts in Patients with Advanced Cancer. Mol Cancer Ther August 2011 10:1311-1316
  3. Rubio-Viqueira B, Jimeno A, Cusatis G, et al. An in vivo platform for translational drug development in pancreatic cancer. Clin Cancer Res. 2006;12:4652-4661.
  4. Champions data on file.