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Champions Oncology to Report Third Quarter Financial Results

Mon, 18 Mar 2013 18:33:40 GMT

Conference Call Scheduled for March 14, 2013

Hackensack, NJ – March 8, 2013 Champions Oncology, Inc. (OTC: CSBR) announced today that it will report its financial results for the third quarter, on Thursday, March 14, 2013 at 8:30 AM ET. To participate in the conference call, please dial use the information below:

Participant Dial-in Numbers:

U.S. Toll Free: 800-874-4559
Canadian Toll Free: 800-696-0876
International Toll: 302-607-2019

Verbal Passcode (to be given to the operator): Champions Oncology

Champions Oncology Reports Fiscal 2012 Third Quarter Financial Results

Mon, 18 Mar 2013 18:33:17 GMT

Champions Oncology, Inc. (OTC: CSBR) reported the following results:

Fiscal Year 2012 Third Quarter Financial Results:

Operating revenues were $2.4 million and $2.8 million for the three months ended January 31, 2012 and 2011, respectively, and $5.8 million and $5.3 million for the nine months ended January 31, 2012 and 2011, respectively.

Total operating expenses were $4.2 million and $3.6 million for the three months ended January 31, 2012 and 2011, respectively, and $12.2 million and $7.7 million for the nine months ended January 31, 2012 and 2011, respectively.

Champions reported a net loss of $1.7 million , or ($0.04) per share and $0.4 million, or ($0.01) per share for the three months ended January 31, 2012 and 2011, respectively, and $6.1 million, or ($0.13) per share and $1.1 million, or ($0.03) per share for the nine months ended January 31, 2012 and 2011, respectively.

Champions recognized a net loss of $1.0 million, excluding stock based compensation of $0.7 million, or ($0.02) per share and net income of $0.8 million, excluding stock based compensation of $1.2 million, or $0.02 per share for three months ended January 31, 2012 and 2011, respectively, and net losses of $3.5 million, excluding stock based compensation of $2.6 million, or ($0.07) per share and net income of $0.5 million, excluding stock based compensation of $1.6 million, or $0.01 per share for the nine months ended January 31, 2012 and 2011, respectively.

In fiscal 2011, the Company modified its POS business strategy to focus on growing its core technology products, which includes Tumorgraft implants and drug studies. As a result, the Company significantly reduced the price of the core technology products to make the products affordable to a broader patient based. In addition, the Company has increased spending on sales and marketing efforts to support this strategy. The Company will continue to offer related personalized oncology services to our customers, including personalized tumor panels and gene sequencing, however, we expect future POS revenue growth to be driven by our core products.

During fiscal 2012, the Company started transitioning the laboratory activities that support the POS and TOS services to our facility in Baltimore, MD. To facilitate this strategy and support the increase in current and expected volume, we have invested in the infrastructure and increased our laboratory staff and are evaluating options to increase our lab capacity to meet the future demand. We believe that bringing these activities in house will significantly reduce the cost of providing our services and allow us to maintain a more aggressive pricing strategy. We expect the transition to be largely complete by the end of the first quarter of fiscal 2013.

Operating Results:

Revenues from Translational Oncology Services (TOS) were $1.7 million and $1.4 million for the three months ended January 31, 2012 and 2011, respectively, an increase of $0.3 million or 26%. TOS revenues were $3.9 million and $2.5 million for the nine months ended January 31, 2012 and 2011, respectively, an increase of $1.4 million or 56%. These increases in TOS revenues were due primarily to increased sales efforts and investments in growing our Tumorbank.

Cost of TOS was $0.8 million and $0.7 million for the three months ended January 31, 2012 and 2011, respectively, an increase of $0.1 million, or 16%. Cost of TOS was $1.9 million and $1.4 million for the nine months ended January 31, 2012 and 2011, respectively, an increase of $0.5 million, or 36%. The increase in cost of sales was due to increased sales volume of the TOS business.

Revenues from Personalized Oncology Services (POS) were $0.6 million and $1.4 million for the three months ended January 31, 2012 and 2011, respectively, a decrease of $0.8 million, or 54%. POS revenues were $1.8 million and $2.8 million for the nine months ended January 31, 2012 and 2011, respectively, a decrease of $1.0 million, or 35%. Panel revenue, a component of POS revenue, decreased $0.9 million and $1.0 million for the three and nine months ended January 31, 2012, respectively. This decrease is primarily attributable to a decrease in pricing per panel. Excluding panel revenue, POS revenue was $0.59 million and $0.5 million for three months ended January 31, 2012 and 2011, an increase of $0.09 million and $1.35 million and $1.32 million for nine months ended January 31, 2012 and 2011, respectively, an increase of $0.03 million. The Company experienced significantly higher volumes of implants and drug studies compared to the prior year. For the three months ended January 31, 2012, the Company performed 25 tumorgraft implants compared to one in the same quarter last year. For the nine months ended January 31, 2012, the Company performed 70 tumorgraft implants compared to nine in the prior year. For the three months ended January 31, 2012, the Company completed five drug studies compared to zero in the same quarter last year. For the nine months ended January 31, 2012, the Company completed nine drug studies compared to three in the prior year. However, the increase in volume was partially offset by a strategic decision to lower pricing for both the tumorgraft implants and drug studies.

Cost of POS was $0.5 million and $0.7 million for the three months ended January 31, 2012 and 2011, respectively, a decrease of $0.2 million, or 27%. Cost of POS was $1.5 million and $1.2 million for the nine months ended January 31, 2012 and 2011, respectively, an increase of $0.3 million, or 21%. The year to date increase in cost of sales corresponds to increased lab costs associated with increased volumes.

Research and development expense was $0.9 million and $0.4 million for the three months ended January 31, 2012 and 2011, respectively, an increase of $0.5 million. Research and development expense was $2.6 million and $2.1 million for the nine months ended January 31, 2012 and 2011, respectively, an increase of $0.5 million, or 21%. The increases from prior year periods are primarily related to increased costs resulting from our continued investment in our Tumorbank and technology platform.

Sales and marketing expense was $0.6 million and $0.2 million for the three months ended January 31, 2012 and 2011, respectively, an increase of $0.4 million. Sales and marketing expense was $1.9 million and $0.4 million for the nine months ended January 31, 2012 and 2011, respectively, an increase of $1.5 million. The increases from prior year periods are primarily related to our continued investment in the infrastructure in POS, increases in our sales force, and increases in marketing costs.

General and administrative expense was $1.3 million and $1.5 million for the three months ended January 31, 2012 and 2011, respectively, a decrease of $0.2 million, or 15%. Stock-based compensation was $0.7 million and $1.2 million for the three months ended January 31, 2012 and 2011, respectively. Excluding stock-based compensation, general and administrative expenses were $0.5 million and $0.3 million for the three months ended January 31, 2012 and 2011, an increase of $0.2 million. General and administrative expense was $4.4 million and $2.6 million for the nine months ended January 31, 2012 and 2011, respectively, an increase of $1.8 million, or 67%. Stock-based compensation was $2.6 million and $1.6 million for the nine months ended January 31, 2012 and 2011, respectively. Excluding stock-based compensation, general and administrative expenses were $1.8 million and $1.0 million for the nine months ended January 31, 2012 and 2011, respectively, an increase of $0.8 million. The increases from the prior periods are related to the expansion of our infrastructure, the addition of our corporate offices in New Jersey, and other costs associated with the Company’s growth strategy.

For the third quarter of fiscal 2012, the Company reported a net loss of $1.7 million, or ($0.04) per share, compared to a net loss of $0.4 million, or ($0.01) per share, in the corresponding quarter of fiscal 2011. In addition to the factors described above, the Company’s net losses reflect non-cash expenses, i.e., share-based compensation and depreciation, of $0.8 million or ($0.02) per share, in the third quarter of 2012 compared to $1.2 million, or ($0.03) per share, in the third quarter of 2011.

The Company’s cash position on January 31, 2012 was $6.5 million.

* Non-GAAP Financial Information

See the attached Reconciliation of GAAP Net Loss to Non-GAAP Net Loss for an explanation of the amounts excluded to arrive at non-GAAP net loss and related non-GAAP loss per share amounts for the fiscal second quarter ended, 2012 and 2011, respectively. Non-GAAP financial measures provide investors and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before and after certain items that would not otherwise be apparent on a GAAP basis. Certain unusual or non-recurring items that management does not believe affect the Company’s basic operations do not meet the GAAP definition of unusual or non-recurring items. Non-GAAP net loss and non-GAAP loss per share are not, and should not be viewed as a substitute for similar GAAP items. We define non-GAAP diluted loss per share amounts as non-GAAP net loss divided by the weighted average number of diluted shares outstanding. Our definition of non-GAAP net loss and non-GAAP diluted loss per share may differ from similarly named measures used by others.

Full details of the Company’s financial results will be available in the Company’s Form 10-Q at www.championsoncology.com.

Champions Oncology Reports Record Results for the Quarter Ended January 31, 2013

Mon, 18 Mar 2013 18:30:10 GMT

Hackensack, NJ – March 14, 2013 – Champions Oncology, Inc. (OTC: CSBR), engaged in the development of advanced technology solutions and services to personalize the development and use of oncology drugs, announced today its financial results for the fiscal quarter ended January 31, 2013.

Quarterly Highlights:

Record revenue for the quarter of $2.9 million.
$10.8 million of cash at quarter end as a result of successful capital raise during the quarter.
Increase in number of POS implants and studies of 64% and 160% over same quarter last year.
Successful launch of Champions’ POS business in Singapore.
Successful completion of a TumorGraft technology collaboration with a subsidiary of Teva

Pharmaceutical Industries

Joel Ackerman, Champions Oncology CEO, stated, “This was a great quarter for the company. We made great progress in both the POS and TOS business and continued to build a solid foundation for future growth. With a strong capital position, we are moving quickly to accelerate our plans for leveraging the TumorGraft technology platform for the future.”

Revenue was $2.9 million, as compared to $2.4 million for the three months ended January 31, 2012. For the nine months ended January 31, 2013 and 2012, revenue was $6.5 million and $5.7 million, respectively.

Total operating expenses were $3.6 million, as compared to $4.1 million for the three months ended January 31, 2012. Operating expenses were $10.7 million, as compared to $12.2 million for the nine months ended January 31, 2012.

Champions reported a net loss of $1.0 million, or ($0.02) per share, as compared to a net loss of $1.7 million, or ($0.04) per share, for the three months ended January 31, 2012. For the nine months ended January 31, 2013, Champions reported a net loss of $4.2 million, or ($0.09) per share, as compared to a net loss of $6.1 million, or ($0.13) per share, for the 2012 period.

Excluding stock-based compensation of $0.6 million and $0.7 million for the three months ended January 31, 2013 and 2012, Champions recognized a net loss of $0.4 million, or ($0.01) per share and a net loss of $1.0 million, or ($0.02) per share for three months ended January 31, 2013 and 2012, respectively. For the nine months ended January 31, 2013 and 2012, excluding stock-based compensation of $1.9 million and $2.6 million, Champions recognized a net loss of $2.3 million, or ($0.05) per share and a net loss of $3.5 million, or ($0.07) per share, respectively.

Operating Results

Personalized Oncology Solutions (POS):

POS unit volumes continued to grow rapidly during the quarter. The number of implants during the quarter and year to date was 41 and 113, an increase of 64% and 61% over the same periods last year. The increase in implants is the result of growing visibility with patients and physicians, an increase in the number of free implants offered to physicians to enable them to get direct experience with TumorGraft technology and the recent opening of an office in Singapore. The number of patients for whom studies were completed was 11 and 34 for the quarter and year to date, an increase of 160% and 209% over the same periods last year. The increase in patient studies is the result of higher implant volumes in the recent quarters which lead to studies in subsequent quarters. POS revenues were $0.5 million and $0.7 million for the three months ended January 31, 2013 and 2012, respectively, a decrease of $0.2 million, or 28%. For the nine months ended January 31, 2013 and 2012, POS revenues were $1.9 million and $1.8million, respectively, an increase of $0.1 million, or 6%. The changes in POS revenues were driven by the increased number of implants and drug studies completed during the three and nine months ended January 31, 2013 compared to the same period in the previous year, offset by a decline in pricing. The decline in pricing is part of the company’s strategy to increase volumes to grow the TumorBank and provide physician’s with more experience with TumorGraft technology. In addition, revenue during the three months ended January 31, 2012 included two very large studies that generated more than $150,000 each.

POS cost of sales was $0.7 million and $0.5 million for the three months ended January 31, 2013 and 2012, respectively, an increase of $0.2 million, or 40%. For the nine months ended January 31, 2013 and 2012, POS cost of sales was $2.0 million and $1.5 million, respectively, an increase of $0.5 million, or 33%. For the three months ended January 31, 2013 and 2012, gross margins for POS were -40% and 29%, respectively. For the nine months ended January 31, 2013 and 2012, gross margins for POS were -5% and 17%, respectively. The increases in cost of sales and the declines in gross margins can be attributed to increased volumes of implants and drug studies performed, in line with management’s strategy to obtain more tumors to increase our tumor model offerings to our TOS sponsors and increase the number of models in our Tumorbank.

Translational Oncology Solutions (TOS):

TOS revenues were $2.4 million and $1.7 million for the three months ended January 31, 2013 and 2012, respectively, an increase of $0.7 million, or 41%. TOS revenues were $4.6 million and $3.9 million for the nine month periods ending January 31, 2013 and 2012, respectively, an increase of $0.7 million, or 18%. The increase in TOS revenues was due primarily to the one-time payment from the successful completion of a TumorGraft technology collaboration with a subsidiary of Teva Pharmaceutical Industries.

TOS cost of sales was $0.6 million and $0.8 million for the three months ended January 31, 2013 and 2012, respectively, a decrease of $0.2 million, or 25%. For the nine months ended January 31, 2013 and 2012, TOS cost of sales was $1.7 million and $1.9 million, respectively, decrease of $0.2 million, or 11%. For the three months ended January 31, 2013 and 2012, gross margins for TOS were 75% and 53%. For the nine months ended January 31, 2013 and 2012, gross margins for TOS were 63% and 51%, respectively.

Research and development expense was $0.6 million and $0.9 million for three months ended January 31, 2013 and 2012, respectively, a decrease of $0.3 million, or 33%. For the nine months ended January 31, 2013 and 2012, research and development expense was $1.4 million and $2.5 million, respectively, a decrease of $1.1 million, or 44%. This decrease is primarily related to decreased laboratory maintenance costs associated with research and development efforts, in line with our strategy to focus on our POS and TOS lines of business. Additionally, the decrease can be attributed to decreased tumor procurement costs, resulting from our strategy to source models from our POS business.

Sales and marketing expense was $0.6 million and $0.6 million for the three months ended January 31, 2013 and 2012. For the nine months ended January 31, 2013 and 2012, sales and marketing expense was $2.1 million and $1.9 million, respectively, an increase of $0.2 million, or 11%.

General and administrative expense was $1.1 million and $1.3 million for the three months ended January 31, 2013 and 2012, respectively, a decrease of $0.2 million, or 15%. For the nine months ended January 31, 2013 and 2012, general and administrative expense was $3.5 million and $4.4 million, respectively, a decrease of $0.9 million, or 21%. This decrease can be attributed to reductions in stock-based compensation expenses and consultant costs. The decrease in stock-based compensation expense is primarily due to large prior period stock option grants that contain performance conditions and were, and continue to be, accounted for using the accelerated attribution method.

Conference Call Information:

The Company will host a conference call on Thursday, March 14, 2013, at 8:30 a.m. ET to discuss its third quarter financial results. To access the conference call, domestic participants should dial 800-874-4559, Canadian participants should dial 800-696-0876, and international participants should dial 302-607-2019. The participant passcode is “Champions Oncology”.

Full details of the Company’s financial results will be available in the Company’s Form 10-Q at www.championsoncology.com.

* Non-GAAP Financial Information

See the attached Reconciliation of GAAP Net Loss to Non-GAAP Net Loss for an explanation of the amounts excluded to arrive at non-GAAP net loss and related non-GAAP loss per share amounts for the three and nine months ended January 31, 2013 and 2012. Non-GAAP financial measures provide investors and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before and after certain items that would not otherwise be apparent on a GAAP basis. Certain unusual or non-recurring items that management does not believe affect the Company’s basic operations do not meet the GAAP definition of unusual or non-recurring items. Non-GAAP net loss and non-GAAP loss per share are not, and should not be viewed as a substitute for similar GAAP items. We define non-GAAP diluted loss per share amounts as non-GAAP net loss divided by the weighted average number of diluted shares outstanding. Our definition of non-GAAP net loss and non-GAAP diluted loss per share may differ from similarly named measures used by others.

Champions Oncology Reports Successful Outcome from Technology Collaboration

Mon, 18 Mar 2013 18:12:32 GMT

Hackensack, NJ – February 11, 2013 – Champions Oncology, Inc. (OTC: CSBR) announced the successful completion of a TumorGraft technology collaboration with a subsidiary of Teva Pharmaceutical Industries, Ltd. (“Teva”). The collaboration was originally initiated in March of 2011 and included extensive evaluation of the efficacy and differentiation of CEP-32496, a dual B-Raf and EGFR inhibitor, one of Teva’s proprietary late stage pre-clinical chemical compounds using 24 Champions TumorGraft™ models of B-Raf mutated human melanoma and colorectal cancer against standard of care drugs and targeted therapeutic agents. The results demonstrated that the compound met the predetermined success criteria. As part of the original agreement, Teva is obligated to pay Champions either milestone and royalty payments upon future development of the compound, or a one-time cash payment upon successful conclusion of the TumorGraft analysis. As a result of the successful outcome, Teva has exercised its right to make the one-time payment in the amount of $880,000 in lieu of the future payments.

Joel Ackerman, the CEO of Champions Oncology commented, “We are excited about the positive outcome that our TumorGraft platform has delivered. This study validates the value that our TumorGrafts deliver to our clients and the importance they play in the process of oncology drug development.”

Champions Oncology Reports Changes to Board of Directors

Wed, 13 Mar 2013 21:47:15 GMT

Hackensack, NJ – March 5, 2013 Champions Oncology, Inc. (OTC: CSBR) is pleased to announce the appointments of Dan Mendelson and Arthur G. (“Bart”) Epker, III to the Board of Directors of Champions Oncology, Inc.

Dan Mendelson is CEO and founder of Avalere Health, a strategic advisory company focused on devising innovative solutions to complex healthcare problems. The firm's customer base includes Fortune 500 healthcare companies, provider organizations, medical foundations, and government. Dan is also currently Adjunct Professor of Business Administration at The Fuqua School of Business at Duke University and sits on the boards of Coventry Health Care Inc. and HMS Holdings Corp. From 1998 to 2000, Dan served as Associate Director for Health at the Office of Management and Budget (OMB). Prior to joining OMB, Dan was Senior Vice President of The Lewin Group and Director of the Medical Technology practice. He holds an undergraduate degree in economics and viola performance from Oberlin College, and a M.P.P. from the Kennedy School of Government at Harvard University.

Bart Epker is a Vice President and partner of PAR Capital Management, Inc., an investment adviser that manages PAR Investment Partners, L.P., a private investment fund. Bart is a member of the boards of directors of Pure Cycle Corporation, the Steppingstone Foundation, and the Winsor School and is on the Honors Alumni Council at the University of Michigan. Prior to joining PAR Capital in 1992, Bart worked at TA Associates, a private equity firm. He received his undergraduate degree in computer science and economics with highest distinction from the University of Michigan (1983) and his Masters of Business Administration from Harvard Business School (1987). PAR Investment Partners purchased common stock and warrants of the Company in a private placement on January 28, 2013. As part of that transaction, the Company agreed to appoint a designee of PAR Investment Partners, to its board of directors. Bart is the designee chosen by PAR Investment Partners.

Dr. David Sidransky, Chairman of the Board of Directors, commented, “The addition of such outstanding directors like Dan and Bart is an important milestone in the continued evolution of Champions to meet the market needs. We are excited to be welcoming them to the board and look forward to their guidance through the continued strategic, operational and financial growth of the company.”

In conjunction with these appointments, Ana Stancic has resigned from the Board of Directors. Scott Tobin, a current director of the company, will assume the role of Chairman of the Audit Committee.

Dr. David Sidransky, Chairman of the Board of Directors commented, “We thank Ana for the years of service she provided the company. Her insights and experience have helped set the strategic direction and ensured financial discipline at the company.”
Ana Stancic commented, “It has been very rewarding to contribute to the progress the company has made during my board tenure. I look forward to watching the company progress in the future from the solid foundation that has been built over time.”

Champions Oncology will be exhibiting (Booth #1037) and presenting 5 posters at the 2012 AACR Annual Meeting

Wed, 13 Mar 2013 21:44:57 GMT

Champions Oncology is pleased to announce that it will be presenting five posters on its Champions TumorGraft™ models and Translational and Personalized Oncology Solutions at the 2012 American Association of Cancer Research (AACR) Annual Meeting on March 31 – April 4 in Chicago, IL. Champions will also be exhibiting at the event at Booth #1037.

The posters can be viewed during the following times during the AACR Annual Meeting. For questions, reprints of the posters, or to arrange a meeting during the event, please contact us.

Poster #	Date	Time	Title
1367	4/2/2012	8am-12pm	Characterization of spontaneous metastases in Champions TumorGraft™ models
5252	4/2/2012	8am-12pm	Utilization of TumorGraft technology for personalized breast cancer treatment
4249	4/3/2012	1pm-5pm	Development of Champions TumorGraft™ models in rare cancer types for oncology drug development
3755	4/3/2012	8am-12pm	Antitumor activity of CEP-32496, a novel orally active BRAFV600E inhibitor, in a panel of Champions TumorGraft models of melanoma and colorectal cancer with B-Raf V600E mutations
1329	4/4/2012	8am-12pm	Personalizing gastrointestinal cancer treatment by the utilization of TumorGraft technology

Champions Oncology Inc. Receives Approval from U.S. Regulatory Authorities

Wed, 13 Mar 2013 21:44:25 GMT

Champions Oncology Inc. announced today that it has received U.S. Clinical Laboratory Improvement Amendment (CLIA) certification from the Maryland Department of Health and Mental Hygiene Office of Health Care Quality required for the company to conduct medical laboratory tests.

The Company’s President, Ronnie Morris, MD commented, “Obtaining CLIA approval is a significant milestone for our Company. This approval validates the quality of our laboratory, which operates with a focus on providing high quality services. This certification will reinforce to both our patients and sponsors who utilize our technology that we are achieving the high standards we set as a Company.”

Champions Oncology Reports Financial Results for the Year Ended April 30, 2012

Wed, 13 Mar 2013 21:44:09 GMT

Hackensack, NJ – July 18, 2012 – Champions Oncology, Inc. (OTC: CSBR), formerly Champions Biotechnology, Inc., engages in the development of advanced technology solutions and services to personalize the development and use of oncology drugs, announced today its financial results for the year ended April 30, 2012.

Joel Ackerman, the CEO of Champions Oncology, stated, “Fiscal 2012 was a year of great progress for the company. We demonstrated our ability to drive significant volume growth in both sides of our business. We continue to evolve our strategic direction to better align the strength of our technology platform with the needs of the market. Within this new approach, we made significant progress in expanding our customer base and building a solid operational foundation for the future.”

Operating revenues were $7.1 million and $6.9 million for the years ended April 30, 2012 and 2011, respectively.

Total operating expenses were $16.2 million and $12.1 million for the years ended April 30, 2012 and 2011, respectively.

Champions reported a net loss of $8.7 million, or ($0.19) per share and $3.8 million, or ($0.11) per share for the years ended April 30, 2012 and 2011, respectively.

Excluding stock based compensation of $3.3 million, Champions recognized a net loss of $5.3* million, or ($0.11*) per share, and excluding stock based compensation of $3.1 million, a net loss of $0.7* million, or ($0.02*), per share for the years ended April 30, 2012 and 2011, respectively.

During fiscal 2012, we modified our POS business strategy to focus on growing our core technology products, which includes TumorGraft implants and drug studies. As part of this strategy, we significantly reduced the price of our core technology products to make the products affordable to a broader patient base and to accelerate the growth of our Tumorbank. In addition, we have increased spending on sales and marketing efforts to support this strategy. We will continue to offer related personalized oncology services to our customers; however, we expect future POS revenues to be driven by our core products.

During the second half of fiscal 2012, we transitioned the laboratory activities that support the POS and TOS businesses from a third-party contract research organization (“CRO”) to our facility in Baltimore, Maryland. We believe that bringing these activities in-house will significantly reduce the future cost of providing our services and allow us to implement and maintain a more competitive pricing strategy. To facilitate this strategy and support the increase in current and expected volume, we have invested in the infrastructure and increased our laboratory staff.

Furthermore, as part of our modified strategy, we plan to use TumorGrafting as a platform technology to drive multiple synergistic revenue streams. We continue to build this platform with investments in research and development, as well as contributions from both the POS and TOS businesses. The platform is then used to deliver products that serve both the POS and TOS customers in synergistic ways. The result is well-differentiated products for patients, physicians, and drug development companies. In addition, we are looking for additional opportunities to utilize the data we are gathering to develop proprietary biomarkers and signatures of response that can predict the resistance or sensitivity of individual tumors to oncology drugs.

Operating Results

TOS revenues were $4.8 million and $3.5 million for the years ended April 30, 2012 and 2011, respectively, an increase of $1.3 million or 38%. The increases in TOS revenues were due primarily to increased sales efforts and investments in growing our Tumorbank.

Cost of TOS was $2.5 million and $1.8 million for the years ended April 30, 2012 and 2011, respectively, an increase of $0.7 million, or 38%. The increase in costs was due to the increased volume of the TOS business. Gross margin for TOS was 47% for the years ended April 30, 2012 and 2011.

POS revenues were $2.3 million and $3.4 million for the years ended April 30, 2012 and 2011, respectively, a decrease of $1.1 million, or 31%. Panel revenue, a component of POS revenue, decreased $1.2 million from the prior year, which is primarily attributable to a decrease in pricing per panel. Excluding panel revenue, POS revenue was $1.8 million and $1.7 million for the years ended April 30, 2012 and 2011, respectively, an increase of $0.1 million. During fiscal 2012, the Company experienced significantly higher volumes of implants and drug studies compared to fiscal 2011. For the year ended April 30, 2012, the Company performed 97 TumorGraft implants, compared to 12 in the prior year. For the year ended April 30, 2012, the Company completed 19 drug studies, compared to 5 in the prior year. The increase in volume was offset by decreased pricing for both the TumorGraft implants and drug studies, as part of our strategic decision to accelerate the growth of our Tumorbank.

Cost of POS was $2.4 million and $1.7 million for the years ended April 30, 2012 and 2011, respectively, an increase of $0.7 million, or 42%. Gross margin for POS was -1% and 51% for the years ended April 30, 2012 and 2011, respectively. Gross margins declined due to the strategic decision to decrease prices to drive increased volumes. Additionally, during the second half of fiscal 2012, the Company transitioned its laboratory work in-house from a third-party CRO. While this has resulted in increased costs during the transition, it is expected to yield future savings. Finally, costs related to POS studies are expensed as incurred, so expenses include ongoing costs related to 11 drug studies in progress at April 30, 2012.

Research and development expense was $2.9 million for the years ended April 30, 2012 and 2011. Our research and development efforts are focused on growing our Tumorbank, increasing our understanding of our TumorGraft models, their clinical predictability, improving growth and tumor take rates, and other biological and molecular characteristics of the models. In fiscal 2012, we increased these efforts, but this was offset by decreased expenses incurred on testing in-licensed compounds.

Sales and marketing expense was $2.9 million and $1.1 million for the years ended April 30, 2012 and 2011, respectively, an increase of $1.8 million, or 170%. The increase for fiscal 2012 is primarily related to employee costs associated with increases in our sales force and marketing expenses incurred in connection with growing our POS and TOS businesses in the United States and in our overseas operations.

General and administrative expense was $5.5 million and $4.6 million for the years ended April 30, 2012 and 2011, respectively, an increase of $0.9 million, or 18%. Stock-based compensation expense relating to general and administrative expense was $3.0 million and $2.9 million for the years ended April 30, 2012 and 2011, respectively. Excluding stock-based compensation, general and administrative expense increased $0.8 million, which primarily relates to the expansion of our infrastructure, the addition of our corporate offices in New Jersey, and other costs associated with the Company’s growth strategy.

The Company’s cash position on April 30, 2012 was $4.8 million.

* Non-GAAP Financial Information

See the attached Reconciliation of GAAP Net Loss to Non-GAAP Net Loss for an explanation of the amounts excluded to arrive at non-GAAP net loss and related non-GAAP loss per share amounts for the fiscal years ended 2012 and 2011, respectively. Non-GAAP financial measures provide investors and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before and after certain items that would not otherwise be apparent on a GAAP basis. Certain unusual or non-recurring items that management does not believe affect the Company’s basic operations do not meet the GAAP definition of unusual or non-recurring items. Non-GAAP net loss and non-GAAP loss per share are not, and should not be viewed as a substitute for similar GAAP items. We define non-GAAP diluted loss per share amounts as non-GAAP net loss divided by the weighted average number of diluted shares outstanding. Our definition of non-GAAP net loss and non-GAAP diluted loss per share may differ from similarly named measures used by others.

Full details of the Company’s financial results will be available in the Company’s Form 10-K at www.championsoncology.com.

Champions Oncology Reports Fiscal 2012 Second Quarter Financial Results

Wed, 13 Mar 2013 21:43:57 GMT

Champions Oncology, Inc. (OTC: CSBR) reported the following results:

Fiscal Year 2012 Second Quarter Financial Results:

Operating revenues were $1.7 million and $0.9 million for the three months ended October 31, 2011 and 2010, respectively, and $3.4 million and $2.5 million for the six months ended October 31, 2011 and 2010, respectively.

Total operating expenses were $4.2 million and $1.9 million for the three months ended October 31, 2011 and 2010, respectively, and $8.0 million and $4.1 million for the six months ended October 31, 2011 and 2010, respectively.

Champions reported a net loss of $2.3 million , or ($0.05) per share and $0.05 million, or ($0.00) per share for three months ended October 31, 2011 and 2010, respectively, and $4.4 million, or ($0.09) per share and $0.65 million, or ($0.02) per share for the six months ended October 31, 2011 and 2010, respectively.

Champions recognized a net loss of $1.5 million, excluding stock based compensation of $0.9 million, or ($0.03) per share and net income of $0.1 million, excluding stock based compensation of $0.2 million, or $0.00 per share for three months ended October 31, 2011 and 2010, respectively, and net losses of $2.5 million, excluding stock based compensation of $1.9 million, or ($0.05) per share and $0.3 million, excluding stock based compensation of $0.4 million, or ($0.01) per share for the six months ended October 31, 2011 and 2010, respectively.

Operating Results

Revenues from Transitional Oncology Services (TOS) were $1.2 million and $0.6 million for the three months ended October 31, 2011 and 2010, respectively, an increase of $0.6 million or 100%. TOS revenues were $2.2 million and $1.1 million for the six months ended October 31, 2011 and 2010, respectively, an increase of $1.1 million or 100%. These increases in TOS revenues were due primarily to the Company’s increased sales efforts and investments in its technology platform.

Cost of TOS was $0.6 and $0.4 million for the three months ended October 31, 2011 and 2010, respectively, an increase of $0.2 million, or 50%. Cost of TOS was $1.1 million and $1.0 million for the six months ended October 31, 2011 and 2010, respectively, an increase of $0.4 million, or 57%. The increase in cost of sales was due to increased sales volume of the TOS business.

Revenues from Personalized Oncology Services (POS) were $0.6 million and $0.3 million for the three months ended October 31, 2011 and 2010, respectively, an increase of $0.3 million, or 100%. POS revenues were $1.2 million and $1.4 million for the six months ended October 31, 2011 and 2010, respectively, a decrease of $0.2 million, or 14%. The six month decrease can be attributed to the Company’s strategic decision to reengineer its products to facilitate lower price points which are expected to result in higher volumes. The Company experienced significantly higher volumes compared to the prior year, but they were not sufficient to overcome the impact of price decreases.

Cost of POS was $0.5 and $0.2 million for the three months ended October 31, 2011 and 2010, respectively, an increase of $0.3 million, or 150%. Cost of POS was $0.9 million and $0.5 million for the six months ended October 31, 2011 and 2010, respectively, an increase of $0.4 million, or 80%. The increase in cost of sales corresponds to the higher sales volumes achieved in fiscal year 2012.

Research and development expense was $1.0 million and $0.7 million for the three months ended October 31, 2011 and 2010, respectively, an increase of $0.3 million, or 43%. Research and development expense was $1.6 million and $1.5 million for the six months ended October 31, 2011 and 2010, respectively, an increase of $0.1 million, or 7%. The increase from prior year periods was primarily related to our continued investment in growing our technology platform.

Sales and marketing expense was $0.7 million and $0.1 million for the three months ended October 31, 2011 and 2010, respectively, an increase of $0.6 million. Sales and marketing expense was $1.3 million and $0.1 million for the six months ended October 31, 2011 and 2010, respectively, an increase of $1.2 million. The year to date increase is primarily related to an increase in our costs associated with increasing our sales force to align with the Company’s growth strategy.

General and administrative expense was $1.5 million and $0.6 million for the three months ended October 31, 2011 and 2010, respectively, an increase of $0.9 million. General and administrative expense was $3.1 million and $1.3 million for the six months ended October 31, 2011 and 2010, respectively, an increase of $1.8 million. These increases are primarily related to an increase in stock-based compensation and an increase in Company personnel due to growth.

For the second quarter of fiscal 2012, the Company reported a net loss of $2.3 million, or ($0.05) per share, compared to a net loss of $0.05 million, or ($0.00) per share,in the corresponding quarter of fiscal 2011. In addition to the factors described above, the Company’s net losses reflect non-cash expenses, i.e., share-based compensation and depreciation, of $0.9 million or ($0.02) per share, in the second quarter of 2012 compared to $0.2 million, or ($0.00) per share, in the second quarter of 2011.

The Company’s cash position on October 31, 2011 was $7.1 million.

* Non-GAAP Financial Information

GAAP items. We define non-GAAP diluted loss per share amounts as non-GAAP net loss divided by the weighted average number of diluted shares outstanding. Our definition of non-GAAP net loss and non-GAAP diluted loss per share may differ from similarly named measures used by others.

Full details of the Company’s financial results will be available in the Company’s Form 10-Q at www.championsoncology.com.

Champions Oncology Reports Financial Results for the Quarter Ended July 31, 2012

Wed, 13 Mar 2013 21:43:46 GMT

Champions Oncology, Inc. (OTC: CSBR), engaged in the development of advanced technology solutions and services to personalize the development and use of oncology drugs, announced today its financial results for its first fiscal quarter ended July 31, 2012.

Joel Ackerman, Champions Oncology CEO, stated, “We are pleased with our continual progress and are focused on continuing to grow our Tumorbank as a source of value creation.”

Operating revenues were $2.1 million, as compared to $1.6 million for the three months ended July 31, 2011.

Total operating expenses were $3.7 million, as compared to $3.8 million for the three months ended July 31, 2011.

Champions reported a net loss of $1.3 million, or ($0.03) per share, as compared to $2.0 million, or ($0.04) per share, for the first quarter ended July 31, 2011.

Excluding stock based compensation of $0.7 million for the 2012 period and $1.0 million for the 2011 period, Champions recognized a net loss of $0.6* million, or ($0.01*) per share for the first quarter ended July 31, 2012, as compared to a net loss of $1.0* million, or ($0.02*) per share for the first quarter ended July 31, 2011.

Operating Results

Personalized Oncology Solutions (POS) revenues were $0.9 million and $0.6 million for the 2012 and 2011 periods, respectively, an increase of $0.3 million, or 50%. The increases in POS revenues were driven by an increased number of drug studies completed during the quarter. During the three months ended July 31, 2012, the Company completed 13 drug studies, compared to only one completed in the prior year. These increases are the result of the steady increase in the number of TumorGrafts performed which have moved onto drug studies.

POS Cost of Sales was $0.8 million and $0.5 million for the 2012 and 2011 periods, respectively, an increase of $0.3 million, or 60%. Gross margins for POS were 11% and 17% for the 2012 and 2011 periods, respectively. The decline in gross margin can be attributed to increased costs related to transitioning our laboratory activities in-house from a third-party laboratory. This transition, which is expected to yield future cost savings through higher utilization of capacity, began during the second half of fiscal 2012 and was substantially completed during the first quarter of fiscal 2013.

Translational Oncology Solutions (TOS) revenues were $1.2 million and $1.0 million for the three months ended July 31, 2012 and 2011, respectively, an increase of $0.2 million, or 20%. The increase in TOS revenues was due primarily to higher numbers of models sold as a result of our increased investment in our Tumorbank.

TOS Cost of Sales were $0.7 million and $0.4 million for the 2012 and 2011 periods, respectively, an increase of $0.3 million, or 75%. Gross margins for TOS were 42% and 60% for the 2012 and 2011 periods, respectively. The decline in gross margin can be attributed to additional costs associated with transitioning laboratory activities in-house from a third-party laboratory. Specifically, we have made additional investments in our infrastructure and our laboratory staff to increase productivity and to support current and expected volumes.

Research and development expenses were $0.4 million and $0.5 million for the three months ended July 31, 2012 and 2011, respectively. This decrease was primarily related to decreased tumor procurement costs, resulting from our strategy to source models from our POS business.

Sales and marketing expenses for each of the periods were $0.7 million. Employee-related costs associated with our sales force and marketing personnel increased $0.2 million, but this was offset by a decrease in marketing activities.

General and administrative expense was $1.1 million and $1.7 million for the respective 2012 and 2011 periods, a decrease of $0.6 million, or 35%. This decrease can be attributed to reductions in stock-based compensation expenses and consultant costs.

* Non-GAAP Financial Information

See the attached Reconciliation of GAAP Net Loss to Non-GAAP Net Loss for an explanation of the amounts excluded to arrive at non-GAAP net loss and related non-GAAP loss per share amounts for the three months ended July 31, 2012 and 2011. Non-GAAP financial measures provide investors and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before and after certain items that would not otherwise be apparent on a GAAP basis. Certain unusual or non-recurring items that management does not believe affect the Company’s basic operations do not meet the GAAP definition of unusual or non-recurring items. Non-GAAP net loss and non-GAAP loss per share are not, and should not be viewed as a substitute for similar GAAP items. We define non-GAAP diluted loss per share amounts as non-GAAP net loss divided by the weighted average number of diluted shares outstanding. Our definition of non-GAAP net loss and non-GAAP diluted loss per share may differ from similarly named measures used by others.

Full details of the Company’s financial results will be available in the Company’s Form 10-K at www.championsoncology.com.

Reconciliation of GAAP to Non-GAAP Net Loss

	Quarter Ended July 31
	2012	2011
Net loss – GAAP	($1,323)	($2,037)
Less: Stock-based compensation	739	1,014
Net loss - non-GAAP	($584)	($1,023)

Reconciliation of GAAP to Non-GAAP Earnings Per Share (EPS)

	Quarter Ended July 31
	2012	2011
EPS – GAAP	($0.03)	($0.04)
Less: Effect of stock-based compensation on EPS	0.02	0.02
EPS - non-GAAP	($0.01)	($0.02)

Condensed Consolidated Statements of Operations (Unaudited)

	Quarter Ended July 31
	2012	2011
POS operating revenue	$918	$601
TOS operating revenue	1,188	1,033
Total operating revenue	$2,106	$1,634

Cost of POS	772	483
Cost of TOS	699	419
Research and development	387	541
Sales and marketing	709	688
General and administrative	1,138	1,717

Loss from Operations	($1,599)	($2,214)

Other Income	279	177

Net Loss before income tax expense	($1,320)	($2,037)
Income taxes	3	-
Net Loss	($1,323)	($2,037)

Earnings per share- basic and diluted	($0.03)	($0.04)
Weighted average shares outstanding- basic and diluted	47,067,000	46,420,000

Condensed Consolidated Balance Sheets

	Balance as of
	July 31, 2012 (unaudited)	April 30, 2012
Cash and cash equivalents	$2,916	$4,716
Accounts receivable	639	584
Other current assets	208	205
Total current assets	3,763	5,505

Restricted cash	188	188
Property and equipment, net	525	560
Goodwill	669	669
Total assets	$5,145	$6,922

Accounts payable and accrued liabilities	$1,635	$2,301
Deferred revenue	918	1,185
Total current liabilities	2,553	3,486

Warrant liability	270	555
Redeemable common stock	8,159	8,159
Stockholders’ deficit	(5,837)	(5,278)
Total liabilities, redeemable common stock and stockholders’ deficit	$5,145	$6,922

Condensed Consolidated Statements of Cash Flows (Unaudited)

	Quarter Ended July 31
	2012	2011
Cash flows from operating activities:
Net Loss	($1,323)	($2,037)
Adjustments to reconcile net cash used in operations:
Stock-based compensation expense	739	1,014
Depreciation expense	54	29
Change in fair value of warrant liability	(285)	(177)
Changes in operating assets and liabilities	(991)	(364)
Net cash used in operating activities	(1,806)	(1,535)

Cash flows from investing activities:
Purchases of property and equipment	(19)	(95)
Net cash used in investing activities:	(19)	(95)

Cash flows from financing activities:
Proceeds from exercise of options and warrants	-	4
Net cash provided by financing activities:	-	4

Exchange rate effect on cash and cash equivalents	25	8
Decrease in cash and cash equivalents	(1,800)	(1,618)
Cash and cash equivalents, beginning of period	4,716	10,457
Cash and cash equivalents, end of period	$2,916	$8,839

Champions Oncology Reports Financial Results for the Quarter Ended October 31, 2012

Wed, 13 Mar 2013 21:43:31 GMT

Hackensack, NJ – December 13, 2012 – Champions Oncology, Inc. (OTC: CSBR), engaged in the development of advanced technology solutions and services to personalize the development and use of oncology drugs, announced today its financial results for the fiscal quarter ended October 31, 2012.

Joel Ackerman, Champions Oncology CEO, stated, “We continue to make progress in increasing the number of TumorGrafts initiated and the size of our Tumorbank. We expect these to drive increased value of our technology platform over the long term.”

Operating revenues were $1.5 million, as compared to $1.8 million for the three months ended October 31, 2011. For the six months ended October 31, 2012 and 2011, operating revenues were $3.6 million and $3.4 million, respectively.

Total operating expenses were $3.4 million, as compared to $4.3 million for the three months ended October 31, 2011. Operating expenses were $7.1 million, as compared to $8.0 million for the six months ended October 31, 2011.

Champions reported a net loss of $2.0 million, or ($0.04) per share, as compared to a net loss of $2.3 million, or ($0.05) per share, for the three months ended October 31, 2011. For the six months ended October 31, 2012, Champions reported a net loss of $3.3 million, or ($0.07) per share, as compared to a net loss of $4.4 million, or ($0.09) per share, for the 2011 period.

Excluding stock-based compensation of $0.6 million and $0.9 million for the three months ended October 31, 2012 and 2011, Champions recognized a net loss of $1.4 million, or ($0.03) per share and a net loss of $1.5 million, or ($0.03) per share for three months ended October 31, 2012 and 2011, respectively. For the six months ended October 31, 2012 and 2011, excluding stock-based compensation of $1.4 million and $1.9 million, Champions recognized a net loss of $1.9 million, or ($0.04) per share and a net loss of $2.5 million, or ($0.05) per share, respectively.

Operating Results

Personalized Oncology Solutions (POS) revenues were $0.5 million and $0.6 million for the three months ended October 31, 2012 and 2011, respectively, a decrease of $0.1 million, or 17%. For the six months ended October 31, 2012 and 2011, POS revenues were $1.4 million and $1.2 million, respectively, an increase of $0.2 million, or 17%. The increase in POS revenues was driven by an increased number of drug studies completed during the six months ended October 31, 2012 compared to the same period in the previous year. During the six months ended October 31, 2012 and 2011, the Company completed 22 and 5 drug studies, respectively. These increases are the result of the steady increase in the number of TumorGrafts performed which have moved onto drug studies.

POS cost of sales was $0.6 million and $0.5 million for the three months ended October 31, 2012 and 2011, respectively, an increase of $0.1 million, or 20%. For the six months ended October 31, 2012 and 2011, POS cost of sales was $1.4 million and $0.9 million, respectively, an increase of $0.5 million, or 56%. For the three months ended October 31, 2012 and 2011, gross margins for POS were -20% and 17%, respectively. For the six months ended October 31, 2012 and 2011, gross margins for POS were 0% and 25%, respectively. The increases in cost of sales and the declines in gross margins can be attributed to increased volumes of implants and drug studies performed, in line with management’s strategy to obtain more tumors to increase our tumor model offerings to our TOS sponsors and increase the number of models in our Tumorbank

Translational Oncology Solutions (TOS) revenues were $1.0 million and $1.2 million for the three months ended October 31, 2012 and 2011, respectively, a decrease of $0.2 million, or 17%. The decrease in TOS revenues was due primarily to decreased contract bookings in the previous quarters. TOS revenues were $2.2 million for each of the six month periods ended October 31, 2012 and 2011.

TOS cost of sales was $0.5 million and $0.6 million for the three months ended October 31, 2012 and 2011, respectively, a decrease of $0.1 million, or 17%. For the six months ended October 31, 2012 and 2011, TOS cost of sales was $1.2 million and $1.1 million, respectively, increase of $0.1 million, or 9%. For the three months ended October 31, 2012 and 2011, gross margins for TOS were 50%. For the six months ended October 31, 2012 and 2011, gross margins for TOS were 46% and 50%, respectively. The decline in gross margin for the six month period can be attributed to additional costs associated with transitioning laboratory activities in-house from a third-party contract research organization. Specifically, we made additional investments in our infrastructure and our laboratory staff to increase productivity and to support current and expected volumes, which is expected to significantly reduce the future cost of providing our services and allow us to maintain a more competitive pricing strategy.

Research and development expense was $0.4 million and $1.0 million for three months ended October 31, 2012 and 2011, respectively, a decrease of $0.6 million, or 60%. For the six months ended October 31, 2012 and 2011, research and development expense was $0.8 million and $1.6 million, respectively, a decrease of $0.8 million, or 50%. This decrease is primarily related to decreased laboratory maintenance costs associated with research and development efforts, in line with our strategy to focus on our POS and TOS lines of business. Additionally, the decrease can be attributed to decreased tumor procurement costs, resulting from our strategy to source models from our POS business.

Sales and marketing expense was $0.7 million for each of the three month periods ended October 31, 2012 and 2011. For the six months ended October 31, 2012 and 2011, sales and marketing expense was $1.4 million and $1.3 million, respectively, an increase of $0.1 million, or 8%.

General and administrative expense was $1.2 million and $1.5 million for the three months ended October 31, 2012 and 2011, respectively, a decrease of $0.3 million, or 20%. For the six months ended October 31, 2012 and 2011, general and administrative expense was $2.3 million and $3.1 million, respectively, a decrease of $0.8 million, or 26%. This decrease can be attributed to reductions in stock-based compensation expenses and consultant costs. The decrease in stock-based compensation expense is primarily due to large prior period stock option grants that contain

performance conditions and were, and continue to be, accounted for using the accelerated attribution method.

* Non-GAAP Financial Information

See the attached Reconciliation of GAAP Net Loss to Non-GAAP Net Loss for an explanation of the amounts excluded to arrive at non-GAAP net loss and related non-GAAP loss per share amounts for the three and six months ended October 31, 2012 and 2011. Non-GAAP financial measures provide investors and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before and after certain items that would not otherwise be apparent on a GAAP basis. Certain unusual or non-recurring items that management does not believe affect the Company’s basic operations do not meet the GAAP definition of unusual or non-recurringitems. Non-GAAP net loss and non-GAAP loss per share are not, and should not be viewed as a substitute for similar GAAP items. We define non-GAAP diluted loss per share amounts as non-GAAP net loss divided by the weighted average number of diluted shares outstanding. Our definition of non-GAAP net loss and non-GAAP diluted loss per share may differ from similarly named measures used by others.

Full details of the Company’s financial results will be available in the Company’s Form 10-K at www.championsoncology.com.

Champions Oncology Raises $9.3 Million in a Private Placement

Wed, 13 Mar 2013 21:43:19 GMT

Hackensack, NJ – January 29, 2013 – Champions Oncology, Inc. (OTC: CSBR) (“the Company”) announced today the company raised $9.3 million at a price of $0.50 per share in a private placement to existing and new investors. No commissions were paid in connection with the private placement. Joel Ackerman, Champions Oncology CEO, stated, “We are pleased to have the continued support of our existing shareholders and to announce the addition of a new high quality investor. These proceeds will allow us to move forward with developing our technology and building our team.”

The lead investors were Battery Ventures IX, L.P., PAR Investment Partners, L.P., Harris & Harris Group Inc., and members of the Company’s management team.

Proceeds from the financing will be used to: Grow the TumorGraft bank to support the current Translational Oncology Solutions business and future biomarker development efforts,
Continue to build out the Senior Management team,
Initiate a validation study for the Personalized Oncology Solutions business and
General corporate purposes.

The private placement was comprised of the issuance of 18.6 million shares of common stock to accredited investors at a price of $0.50 per share, a premium of 16% to today’s closing price, pursuant to Regulation D of the Securities Act of 1933, as amended. Gross proceeds to the Company will be $9.3 million. Concurrent with the closing of the private placement, the Company will issue warrants to the investors which will entitle the holders to purchase up to 1,860,000 additional shares of common stock at $0.66 per share for a period of five years following the date of issuance. The Company also granted the investors certain registration rights with respect to the shares of common stock and shares of common stock issuable upon exercise of the warrants.

Champions Oncology Announces Geographic Expansion

Wed, 13 Mar 2013 21:35:46 GMT

Hackensack, NJ – 12/13/2012 – Champions Oncology, Inc. (OTC: CSBR), a company engaged in the development of advanced technology solutions and services to personalize the development and use of oncology drugs, announced today the expansion of its personalized oncology services into the Asian market. The company has been developing the necessary infrastructure to begin offering its TumorGraft services through a newly established operation in Singapore. Champions plans to start offering personalized oncology services by December 31, 2012.

Dr. Ronnie Morris, president of Champions Oncology, commented, “We are very excited about the opportunity to offer our personalized TumorGraft services to physicians and cancer patients in South East Asia. The Singapore medical community has expressed a great deal of interest in offering our services throughout South East Asia. We believe that this presence will provide a significant opportunity for growth.”

Champions Oncology, Inc. Appoints Executive Vice President and Chief Financial Officer to Management Team and Corporate Office Relocation

Tue, 22 Nov 2011 02:16:59 GMT

Company Hires Gary G. Gemignani as Executive Vice President and Chief Financial Officer

Champions Oncology, Inc. (“Champions” or the “Company”) (OTC Bulletin Board: CSBR) , a company engaged in the development of advanced technology solutions and services to personalize the development and use of oncology drugs, has appointed Gary G. Gemignani to the Company’s management team, as Executive Vice President and Chief Financial Officer. Joel Ackerman, the Company’s Chief Executive Officer, served as interim Chief Financial Officer, until Mr. Gemignani’s appointment. Mr. Ackerman commented “We are pleased to add an executive with Gary’s background and vast experiences as we continue to build our management team.”

Most recently, Mr. Gemignani served as Executive Vice President, Chief Operating Officer and Chief Financial Officer of Coronado Biosciences, a company focused on novel immunotherapy agents for cancer and inflammatory diseases. From June 2005 through March 2010, Mr. Gemignani served as Executive Vice President, Chief Operating Officer and Chief Financial Officer for Gentium S.p.A., a biotechnology company focused on developing products to address complications of cancer therapy. Prior to that Mr. Gemignani held management positions of increasing responsibility at Wyeth, Novartis and Prudential Financial. Mr. Gemignani received a Bachelor’s Degree in Accounting from St. Peter’s College.

Additionally, Champions announces the relocation of its corporate office from Baltimore, MD to Hackensack, NJ.

Champions Biotechnology Reports Fiscal 2011 Third Quarter Financial Results

Tue, 25 Oct 2011 22:12:46 GMT

Champions Biotechnology, Inc. (OTC: CSBR), today announced its operating results for its third fiscal quarter ended January 31, 2011.

Fiscal 2011 Third Quarter Financial Highlights

Total operating revenue of $2,805,000 representing an increase of 278% compared to the third quarter of 2010
Net loss of ($415,000); Net income excluding stock based compensation of $796,000*
Net loss of ($0.02) per share; Net income excluding stock-based compensation of $0.02 per diluted share*
Cash and Cash Equivalents of $2,941,000

Fiscal 2011 Third Quarter Financial Results.

Total revenues for the third quarter of fiscal 2011 were $2,805,000 compared to $742,000 in the third quarter of fiscal 2010, an increase of $2,063,000, or 278%. Revenues from Personalized Oncology Solutions, or POS, were $1,419,000 compared to $325,000 in the corresponding quarter of the prior year, an increase of $1,094,000, or 337%. The increase is primarily due to the increased volume of POS business during the quarter. Revenues from Translational Oncology Solutions, or TOS, previously referred to as Preclinical eValuation services, were $1,386,000 for the quarter compared to $417,000 in the corresponding quarter of the prior year, an increase of $969,000, or 232%. The increase is primarily due to the increased volume of TOS business during the quarter.

Costs of POS for the three months ended January 31, 2011 and 2010 were $751,000 and $162,000, respectively, an increase of $589,000, or 364%. The increase in costs was due to the increased volume of POS business. For the three months ended January 31, 2011 and 2010, gross margins for POS was 47% and 50%, respectively. The decrease in gross margin was attributable to the reduction in POS fees that the Company has instituted to increase affordability of the services being offered.

Costs of TOS for the three months ended January 31, 2011 and 2010 were $584,000 and $202,000, respectively, an increase of $382,000, or 189%. For the three months ended January 31, 2011 and 2010, gross margins for TOS was 58% and 52%, respectively. The increase in gross margin is a reflection of the efficiencies achieved as the business continues to grow.

Research and Development

Research and development, or R&D, expenses for the three months ended January 31, 2011 and 2010 were $400,000 and $566,000, respectively, a decrease of $166,000, or 29%. The decrease in R&D expenses in 2011 was primarily due to the recognition of $130,000 in licensing fees and costs associated with the Bithionol agreement in 2010, which were not incurred during 2011.

General and Administrative

General and administrative, or G&A, expenses for the three months ended January 31, 2011 and 2010 were $1,856,000 and $595,000, respectively, an increase of $1,261,000, or 212%. The increase was primarily due to the $1,135,000 stock-based compensation expense related to stock options issued to our Chief Executive Officer and President.

Interest and Other Income, Net

Interest and other income for the three months ended January 31, 2011 was $371,000, which primarily relates to grant income earned under the Qualifying Therapeutic Discovery Project program administered under Section 48D of the Internal Revenue Code based on the percentage of qualifying expenses incurred through the nine months ended January 31, 2011 compared to the total expected expenses to be incurred for fiscal year 2011.

Cash and Cash Equivalents

The Company’s cash position on January 31, 2011 was $2,941,000 compared to $2,572,000 on April 30, 2010.

For the nine-month period ended January 31, 2011, revenues were $5,338,000 compared to $2,993,000 for the comparable period last year, an increase of $2,345,000, or 78%. Total operating expenses, which include costs of POS and TOS, R&D and G&A were $7,742,000 compared to $5,369,000 for the comparable period last year, an increase of $2,373,000, or 44%. Interest and other income for the nine months ended January 31, 2011 was $1,344,000. The Company reported a net loss of $1,060,000, or ($0.03) per share, as compared to a net loss of $2,371,000, or ($0.07) per share, for the comparable period in fiscal 2010.

Joel Ackerman, the Company’s Chief Executive Officer, commented, “The financial growth we achieved this quarter is a clear indication of the need for personalized oncology products for both physicians and medical technology companies. The foundation that was built over the last three years, combined with the sales resources we are adding, is beginning to result in an increased momentum for our Company.”

* Non-GAAP Financial Information

See the attached Reconciliation of GAAP Net Loss to Non-GAAP Net Income (Loss) for an explanation of the amounts excluded to arrive at non-GAAP net income (loss) and related non-GAAP earnings (loss) per share amounts for the three months ended January 31, 2011 and 2010, respectively. Non-GAAP financial measures provide investors and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before and after certain items that would not otherwise be apparent on a GAAP basis. Certain unusual or non-recurring items that management does not believe affect the Company’s basic operations do not meet the GAAP definition of unusual or non-recurring items. Non-GAAP net income (loss) and non-GAAP earnings (loss) per share are not, and should not be viewed as a substitute for similar GAAP items. We define non-GAAP diluted earnings per share amounts as non-GAAP net income divided by the weighted average number of diluted shares outstanding. Our definition of non-GAAP net income (loss) and non-GAAP diluted earnings (loss) per share may differ from similarly named measures used by others.

Champions Biotechnology Reports Fiscal 2011 First Quarter Financial Results

Tue, 25 Oct 2011 20:38:16 GMT

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, today announced its financial results for the fiscal 2011 first quarter ended July 31, 2010. Full details of the Company’s financial results will be available in the Company’s Form 10-Q at www.championsbiotechnology.com.

Total revenues for the first quarter of fiscal 2011 were $1.6 million compared to $962,000 in the first quarter of fiscal 2010, an increase of 66%. Revenues from Personalized Oncology were $1.1 million compared to $899,000 in the corresponding quarter of the prior year, an increase of 23%. Revenues from Preclinical eValuation were $491,000 for the quarter compared to $63,000 in the corresponding quarter of the prior year, an increase of 679%. The increase in Preclinical eValuation was a result of the Company beginning to recognize revenues in its second full year of providing Preclinical services. Cost of Personalized Oncology services for the first quarter of 2011 was $324,000 which resulted in a gross margin of 71% as compared to 29% in the corresponding 2010 fiscal quarter. The increase in gross margin was due to a greater mix of higher-margin business. Cost of Preclinical eValuation services for the first quarter of fiscal 2011 was $222,000 which resulted in a gross margin of 55% as compared to 46% in the corresponding 2010 fiscal quarter. The increase in gross margin in 2011 resulted from increased pricing efficiencies realized in the Company’s second full year of operations.

Research and development (“R&D”) expenses for the first quarter of fiscal 2011 were $919,000 as compared to $496,000 in the first quarter of fiscal 2010. The increase in R&D expenses in 2011 was mainly due to costs associated with the development and testing of the Company’s four drug compounds and the acquisition of Tumorgrafts as the Company continues to expand its tumorgraft platform. General and administrative expenses for first quarter of fiscal 2011 were $738,000 as compared to $806,000 in fiscal 2010. The decrease was primarily attributable to the Company’s consolidation of its operations to Baltimore, Maryland.

For the first quarter of fiscal 2011, the Company reported a net loss of $591,000, or ($0.02) per share, compared to a net loss of $1.0 million, or ($0.03) per share, in the corresponding quarter of fiscal 2010. In addition to the factors described above, the Company’s net losses reflect non-cash expenses, i.e., share-based compensation and depreciation, of $180,000 or ($0.01) per share, in the first quarter of 2011 compared to $58,000, or ($0.00) per share, in the first quarter of 2010. The Company’s cash position on July 31, 2010 was $2.1 million compared to $2.6 million on April 30, 2010.

First Quarter Highlights:

Experienced an increase in top-line revenues of 66% with overall gross margins increasing from 31% to 66%, year-over-year;
Experienced year-over-year top-line revenue growth of 679% in the Preclinical eValuation business;
Continued to expand its Biomerk Tumorgraft platform to approximately 350 tumorgrafts which are available and/or in development at July 31, 2010, representing all of the major solid tumor indications;
Hired a Preclinical Sales Director to oversee direct sales of Preclinical eValuation services; and
Began to offer genome sequencing as part of its Personalized Oncology services.

David Sidransky, M.D., Chairman of the Board of Champions Biotechnology, Inc., noted, “The 2011 first quarter results are positive. As we move into 2011, we continue to see strong results from both Preclinical eValuation and Personalized Oncology. In addition, with the hiring of our Preclinical Sales Director in August 2010, we are positioned to reach out to more pharmaceutical companies that can utilize our Preclinical eValuation platform.”

Champions Biotechnology Reports Fiscal 2010 Third Quarter Financial Results

Tue, 25 Oct 2011 20:37:57 GMT

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, today announced its financial results for the second fiscal quarter ended October 31, 2009. Full details of Company’s financial results are available in the Company’s Form 10-Q at www.championsbiotechnology.com.

Total revenues for the second quarter of 2010 were $1,289,000 as compared to $1,044,000 in fiscal 2009, an increase of 23%. The overall increase was derived from the Company’s Preclinical eValuation business which generated revenues of $700,000 for the second fiscal quarter of 2010 compared to $180,000 for the corresponding quarter a year ago, an increase of 289%. Revenues from Personalized Oncology Services for the second fiscal quarter of 2010 were $589,000 as compared to $864,000 in fiscal 2009, a decrease of 32%. The overall reduction resulted from a decrease in panel revenues during the quarter partially offset by increases in Personalized Tumorgraft implantations and associated drug studies as well as vaccine studies as the Company focused on growing this more strategic area of the Personalized Oncology business.

Costs of Preclinical eValuation services for the second fiscal quarter of 2010 totaled $350,000 as compared to $90,000 in fiscal 2009. The cost of Preclinical eValuation expenses increased proportionally with the additional revenues which were generated in the quarter.

Costs of Personalized Oncology Services for the second quarter totalled ($13,000) as compared to $369,000 in fiscal 2009. This reduction is due to the decrease in Personalized Oncology panel services year over year. In addition, during the quarter the Company recognized a one-time $125,000 credit and change in estimate for accrued costs of a personalized oncology study agreement.

Research and development (“R&D”) expenses for the second quarter of fiscal 2010 were $645,000 as compared to $417,000 in the comparable quarter of fiscal 2009, an increase of 55%. This increase is primarily due to licensing fees and costs of $208,000 in connection with licensing our second oncology drug, TAR-1.

General and administrative expenses for the second fiscal quarter of 2010 were $891,000 as compared to $354,000 in the comparable quarter of 2008. This increase is primarily due to our development of corporate infrastructure to support our effort to grow our Preclinical eValuation Services and includes increased payroll, legal, accounting, marketing, and office rent expenses.

For the second quarter ended October 31, 2009 the Company reported a net loss of $584,000 or ($0.02) per share compared to a net loss of $161,000 or $0.00 per share for the corresponding quarter in fiscal 2009.

The Company’s cash position on October 31, 2009 was $394,000 compared to $1,728,000 at April 30, 2009.

For the six-month period ended October 31, 2009, revenues were $2,251,000 compared to $1,717,000 for the comparable period last year, an increase of 31%. Total operating expenses which include research and development and general and administrative, were $2,838,000 compared to $1,337,000 for the comparable period last year, an increase of 112% and the Company reported a net loss of

$1,587,000 or $0.05 per share, as compared to a net loss of $292,000 or $0.01 per share for the comparable period in fiscal 2009.

Doug Burkett, Ph.D. President of Champions Biotechnology, Inc. commented. “This past quarter we saw continued revenue growth and exceptional progress in our primary objective to in-license a pipeline of high potential oncology drugs. The Company continued to make progress during the quarter on the following fronts.”

The Company’s quarterly top line revenues increased 23% year over year.
Champions entered into an exclusive licensing agreement with Ramot of Tel Aviv University for TAR-1, a therapeutic for the treatment of cancer.
Champions entered into an exclusive licensing agreement with Yale University and Southern Research Institute for the repurposing of Bithionol for Oncology.
The Company began Tumorgraft testing of its oncology drug, SG410.
Champions entered into a collaboration agreement with Ortho Biotech Oncology Research & Development for the evaluation of a preclinical oncology therapeutic.
The United States Patent and Trademark Office issued a patent in September for the Company’s tubulin inhibitors, including its oncology compound SG410.

Champions Oncology Reports Fiscal 2012 First Quarter Financial Results

Tue, 25 Oct 2011 20:37:50 GMT

Champions Oncology, Inc. formerly Champions Biotechnology, Inc. (OTC: CSBR) reported the following results:

Fiscal Year 2012 First Quarter Financial Results:

Total operating revenues for the first quarter of fiscal 2012 were $1.63 million compared to $1.60 million in the first quarter of fiscal 2011. Total operating expenses for the first quarter of fiscal 2012 were $3.85 million compared to $2.20 million in the first quarter of fiscal 2011. Champions reported a net loss of $2.04 million, or ($0.04) per share, compared to a net loss of $0.59 million, or ($0.02) per share, in the corresponding prior year quarter. Champions recognized a net loss of $1.03 million excluding stock based compensation* of $1.01 million, or ($0.02) per share for the first quarter of fiscal 2012 compared to a net loss of $0.42 million excluding stock based compensation* of $0.17 million, or ($0.01) per share for the first quarter of fiscal 2011.

Services Revenues

Revenues from Translational Oncology Solutions (TOS) were $1.03 million for the quarter compared to $0.49 million in the corresponding quarter of the prior year, an increase of 110%. The increase in TOS revenues was driven by an increase in the number of contracts over the prior period, resulting from the company’s increased sales efforts.

Cost of TOS services for the first quarter of fiscal 2012 was $0.42 million which resulted in a gross margin of 59% as compared to 55% in the corresponding 2011 fiscal quarter.

Revenues from Personalized Oncology Solutions (POS) were $0.60 million compared to $1.11 million in the corresponding prior year quarter. This decrease was the result of the company’s strategic decision to re-engineer its products to facilitate lower price points which are expected to result in higher volumes.

During the quarter, the company did generate significantly higher volumes but these were not yet sufficient to overcome the impact of the price decreases. These decreases were partially offset by an increase in sequencing revenue over the prior year first quarter.

Cost of POS for the first quarter of 2012 was $0.48 million which resulted in a gross margin of 20% as compared to 71% in the corresponding 2011 fiscal quarter. The decrease in gross margin can be attributed to declines in pricing.

Research and development (“R&D”) expenses for the first quarter of fiscal 2012 were $0.54 million as compared to $0.92 million in the first quarter of fiscal 2011. The decrease from 2011 to 2012 was primarily related to lower spending on our technology platform and tumorgraft testing on the in-licensed compounds.

Sales and marketing expenses for first quarter of fiscal 2012 were $0.69 million as compared to $0.13 million in the first quarter of fiscal 2011. The increase is primarily related to the increase in Company sales force personnel and increased marketing and promotional expenses.

General and administrative expenses for first quarter of fiscal 2012 were $1.72 million as compared to $0.60 million in the first quarter of fiscal 2011. The increase is primarily related to the increase in Company personnel due to growth and stock-based compensation.

For the first quarter of fiscal 2012, the Company reported a net loss of $2.04 million, or ($0.04) per share, compared to a net loss of $0.59 million, or ($0.02) per share, in the corresponding quarter of fiscal 2011. In addition to the factors described above, the Company’s net losses reflect non-cash expenses, i.e., share-based compensation and depreciation, of $1.04 million or ($0.02) per share, in the first quarter of 2012 compared to $0.18 million, or ($0.01) per share, in the first quarter of 2011.

The Company’s cash position on July 31, 2011 was $8.84 million.

* Non-GAAP Financial Information

See the attached Reconciliation of GAAP Net Loss to Non-GAAP Net Loss for an explanation of the amounts excluded to arrive at non-GAAP net loss and related non-GAAP loss per share amounts for the fiscal first quarter ended, 2012 and 2011, respectively. Non-GAAP financial measures provide investors and management with supplemental measures of operating performance and trends that facilitate comparisons between periods before and after certain items that would not otherwise be apparent on a GAAP basis. Certain unusual or non-recurring items that management does not believe affect the Company’s basic operations do not meet the GAAP definition of unusual or non-recurring items. Non-GAAP net loss and non-GAAP loss per share are not, and should not be viewed as a substitute for similar GAAP items. We define non-GAAP diluted loss per share amounts as non-GAAP net loss divided by the weighted average number of diluted shares outstanding. Our definition of non-GAAP net loss and non-GAAP diluted loss per share may differ from similarly named measures used by others.

Champions Biotechnology Reports Fiscal 2010 Third Quarter Financial Results

Tue, 25 Oct 2011 20:37:21 GMT

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, today announced its financial results for the third fiscal quarter ended January 31, 2010. Full details of Company’s financial results are available in the Company’s Form 10-Q at www.championsbiotechnology.com.

Total revenues for the third quarter of 2010 were $742,000 as compared to $984,000 in fiscal 2009, a decrease of $242,000. Revenues from Preclinical eValuation were $417,000 for the 2010 quarter compared to $83,000 in the corresponding quarter in 2009, an increase of $334,000. This increase is due to growth in both the number of studies being completed and customers entering into contracts for the Company’s preclinical eValuation services. This increase was offset by a decrease in the Company’s Personalized Oncology Services revenues which generated revenues of $325,000 in the 2010 third quarter compared to $901,000 in the corresponding quarter a year ago, a decrease of $576,000. Although we believe that the results of this business were somewhat effected by the severe winter we are seeing positive trends in our Personalized Oncology business going into the final quarter of our fiscal year.

Costs of Personalized Oncology Services for the third quarter of 2010 totalled $162,000 as compared to $464,000 in fiscal 2009, a decrease of 65%. This reduction is due to the decrease in Personalized Oncology services provided year- over- year. Gross margins for the 2010 and 2009 fiscal third quarters were 50% and 49%, respectively.

Costs of Preclinical eValuation services for the three months ended January 31, 2010 and 2009 were $202,000 and $206,000, respectively, a decrease of $4,000 or 2%. Gross margins for the 2010 and 2009 fiscal third quarters were 51% and (148%), respectively. During the third quarter of 2009, the Company realized negative gross margin on preclinical eValuation service revenues primarily due to a contractually negotiated reduction in payments and additional testing with one of the Company’s customers.

Research and development (“R&D”) expenses for the third quarter of fiscal 2010 were $566,000 as compared to $435,000 in the comparable quarter of fiscal 2009, an increase of 30%. This increase is primarily due to licensing fees and costs of $130,000 incurred in connection with licensing our third oncology drug candidate Bithionol.

General and administrative expenses for the third quarter of 2010 were $596,000 as compared to $463,000 in the comparable quarter of 2009, an increase of 29%. This increase is primarily due to the development of our corporate infrastructure to support our effort to grow our Preclinical eValuation services and includes increased salaries and bonuses, legal, accounting, marketing, and office rent expenses.

For the third quarter ended January 31, 2010, the Company reported a net loss of $784,000 or $0.02 per share compared to a net loss of $563,000 or $0.02 per share for the corresponding quarter in 2009.

The Company’s cash position on January 31, 2010 was $1,479,000 compared to $1,728,000 at April 30, 2009.

Recently the Company commenced a private offering to “Accredited Investors” as defined in section 2(15) of the Securities Act. The Company is seeking to raise up to $10.0 million dollars through the private placement of unregistered shares of its common stock. During the third quarter of 2010 the Company received gross proceeds of $2,100,000 from the private placement of 2,800,000 shares of the Company’s unregistered stock.

For the nine-month period ended January 31, 2010, revenues were $2,993,000 compared to $2,701,000 for the comparable period last year, an increase of 11%. Total operating expenses which include research and development and general and administrative, were $4,000,000 compared to $2,235,000 for the comparable period last year, an increase of 79% and the Company reported a net loss of $2,371,000 or $0.07 per share, as compared to a net loss of $855,000 or $0.03 per share for the comparable period in fiscal 2009.

Dr. David Sidransky, Chairman of the Board of Directors of Champions Biotechnology, Inc., commented, “This past quarter, although we saw reduced revenues from our Personalized Oncology business, we continued to see solid performance from our Preclinical eValuation business. Having made strong progress in building the integrity of our platform for the Preclinical eValuation business, we can now more fully implement our primary objective to in-license a pipeline of high potential oncology drugs and compounds. The Company progress to date is evidenced by the following:

The Company’s quarterly Preclinical eValuation revenues increased 402% year over year.
Champions entered into an exclusive Option Agreement with a leading Canadian research organization to review a cancer drug candidate. This brings our total number of products owned, licensed or under option agreements to four.
Champion’s Preclinical eValuation business expanded and initiated new contracts with several major Biotechnology and Pharmaceutical companies.
Champions has received signed subscription agreements totaling $3.0 million to date of which $2.2 million has been received in our private placement to accredited investors.”

For more information regarding Champions Biotechnology’s business and recent news, please visit www.championsbiotechnology.com. To learn more about Personalized Cancer Treatment please visit www.personalizedcancertreatment.com.

Champions Biotechnology Enters into Licensing Agreement with Yale University and Southern Research Institute for the Repurposing of Bithionol for Oncology

Tue, 25 Oct 2011 20:37:08 GMT

Champions Continues to Build its Tumorgraft™ Driven Oncology Pipeline

Champions Biotechnology, Inc. (OTC Bulletin Board: CSBR), an oncology drug development company with a predictive preclinical platform aimed at accelerating the development and enhancing the value of oncology drugs, has established an exclusive licensing agreement with Yale University and Southern Research Institute for the development of Bithionol for cancer treatment. Scientists from Yale and Southern Research found that Bithionol, a drug available for helminthic infections, shows activity against solid cancerous tumors and has the potential to treat melanoma, prostate, breast and lung cancer, among other cancers.

Their research found that Bithionol is an Autotaxin inhibitor that is expected to be useful in treating various types of cancer. By inhibiting Autotaxin (ATX), a prometastatic enzyme, Bithionol inhibits myriad of biological activities, including angiogenesis and the promotion of cell growth, survival, and differentiation. ATX increases the aggressiveness and invasiveness of transformed cells, and ATX levels directly correlate with tumor stage and grade in several human malignancies.

Under the terms of the agreement, Champions will have exclusive rights and be responsible for the further development of Bithionol for all oncology indications. Yale and Southern Research will receive an upfront payment and will be eligible to receive milestone payments and royalties. Additionally, the parties have agreed upon certain terms favorable to developing world markets.

Champions will use its predictive Biomerk Tumorgraft™ platform to assess the efficacy of the compound—alone and in combination with other compounds—to determine its optimal application and enable efficient clinical development. Upon successful results, Champions will move the compound forward into human clinical trials. “The benefits of our predictive Tumorgraft™ evaluation are further enhanced by the fact that Biothionol is already available for a different indication. We therefore expect an accelerated regulatory path to proof of clinical concept,” said Guy Malchi, head of corporate development for Champions.

This is the third compound to be in-licensed into Champions’ rapidly growing pipeline of oncology compounds. Recently, Champions announced the licensing of TAR-1, a single-chain antibody fragment, from Ramot at Tel Aviv University.

“We are excited to work with Champions’ experienced scientific team to translate these promising early findings towards a meaningful clinical program by leveraging Champions’ preclinical platform,” said Demetrios Braddock, M.D., Ph.D., Associate Professor of Pathology in Yale School of Medicine and the Yale inventor of the licensed technology.

“It is gratifying to see the work of Southern Research and Yale scientists being channeled in this way, and to hopefully lead to the development of another new drug for cancer patients,” said Nancy M. Gray,

Ph.D., vice president of Corporate Development for Southern Research Institute. “This licensing opportunity with the Champions team fits quite well within Southern Research’s own mission of conducting basic and translational research that ultimately leads to the approval of a new drug.”

The work was funded, in part, by the Yale Clinical and Translational Science Award (CTSA) grant from the National Center for Research Resources at the National Institutes of Health.

Champions Biotechnology, Inc. is engaged in the development of advanced preclinical platforms and tumor specific data to enhance and accelerate the value of oncology drugs. The Company’s Preclinical Platform is a novel approach based upon the implantation of primary human tumors in immune deficient mice followed by propagation of the resulting engraftments (Biomerk Tumorgrafts™) in a manner that preserves the biological characteristics of the original human tumor. Early studies suggest that unlike traditional xenografts, these Tumorgrafts closely reflect human cancer biology and their response to drugs is predictive of clinical outcomes in cancer patients. Champions Biotechnology leverages its preclinical platform to evaluate drug candidates and to develop a portfolio of novel therapeutic candidates. As drugs progress through early stage development, the Company plans to sell, partner or license them to pharmaceutical and/or biotechnology companies, as appropriate. The Company also offers its predictive preclinical platform and tumor specific data to physicians for personalized patient care and to companies for evaluation of oncology drugs in models that integrate prognostic testing with biomarker discovery. For more information regarding Champions Biotechnology’s growing business and recent news, please visit www.championsbiotechnology.com or www.personalizedcancertreatment.com.

About Yale University

Founded in 1701, Yale University comprises three major academic components: Yale College (the undergraduate program), the Graduate School of Arts and Sciences, and the professional schools. In addition, Yale encompasses a wide array of centers and programs, libraries, museums, and administrative support offices. Approximately 11,250 students attend Yale. Founded in 1810, Yale School of Medicine is a world-renowned center for biomedical research, education and advanced healthcare. Among its 27 departments are one of the nation’s oldest schools of public health and the internationally recognized Child Study Center, founded in 1911. Yale School of Medicine consistently ranks among the handful of leading recipients of research funding from the National Institutes of Health and other organizations supporting the biomedical sciences. Its core faculty of more than 1,100 physicians and scientists is well represented within the Institute of Medicine and National Academy of Sciences and among investigators of the Howard Hughes Medical Institute.

About Southern Research

Southern Research Institute is a nonprofit 501(c) 3 scientific research organization that conducts preclinical drug discovery and development, and advanced engineering research in materials, systems development, environment and energy. Our more than 550 scientific and engineering team members support clients and partners in the pharmaceutical, biotechnology, defense, aerospace, environmental and energy industries. Southern Research is headquartered in Birmingham, Ala., with facilities in Wilsonville, Ala., Anniston, Ala., Frederick, Md., and Durham, NC and offices in New Orleans, La., Washington, DC and Kiev, Ukraine. For more information about Southern Research and its capabilities and accomplishments, visit www.SouthernResearch.org.