TORONTO, Nov. 12 /PRNewswire-FirstCall/ -- IntelliPharmaCeutics
International Inc. (NASDAQ:IPCI; TSX:I) today reported the results
of operations for the three and nine months ended September 30,
2009 of IntelliPharmaCeutics Ltd., (the "Predecessor Company") .
The company is filing the September 30, 2009 financial statements
of IntelliPharmaCeutics Ltd., in accordance with Section 4.10(2)(a)
of 51-102 which provides that all financial statements be filed for
all annual and interim periods ending before the date of the
reverse takeover and after the date of the financial statements
included in the information circular or similar document prepared
in connection with the transaction. All dollar amounts referenced
herein are in United States dollars unless otherwise noted. The net
loss for the third quarter of 2009 was $165,739, or $0.01 per
common share, compared with a net loss of $915,596, or $0.05 per
common share for the same period in 2008. We incurred a net loss
for the nine months ended September 30, 2009 of $963,411, or $0.06
per common share, compared with a net loss of $1,683,184, or $0.10
per common share for the same period in 2008. The decreased loss
for the three and nine months ended September 30, 2009 is due to
initiatives taken by us to lower operating expenses. Cost reduction
initiatives included a decrease in wages and benefits for both
administrative and research and development staff as well as a
reduction in overall staffing levels. At September 30, 2009, our
cash totaled $10,883, compared with $902,213 at December 31, 2008
and $25,518 at June 30, 2009. Our net cash used in operating
activities for the three and nine months ended September 30, 2009
has been offset by advances from Dr. Isa Odidi and Dr. Amina Odidi,
principal stockholders, directors and executive officers. Corporate
Update - On October 22, 2009 we announced the completion of our
previously announced plan of arrangement with Vasogen Inc.. The
shareholders of IntelliPharmaCeutics Ltd. and Vasogen Inc. approved
this transaction at their respective shareholder meetings on
October 19, 2009. All court and regulatory approvals required to
effect the arrangement have been received. The arrangement resulted
in IntelliPharmaCeutics Ltd. and IntelliPharmaCeutics Corp.
combining with 7231971 Canada Inc., a new Vasogen company that
acquired substantially all of the assets of Vasogen Inc., including
the $7.5 million in gross proceeds from its non-dilutive financing
transaction with Cervus LP. As a result of this transaction, former
shareholders of IntelliPharmaCeutics Ltd. own approximately 86% of
the outstanding common shares of IPC and former shareholders of
Vasogen Inc. own approximately 14% of the outstanding common shares
of IPC. - In connection with the transaction that was completed on
October 22, 2009 IntelliPharmaCeutics International Inc. received
approximately $10.0 million in Net Cash as defined in the
arrangement agreement with Vasogen Inc. that will be used to fund
our operations and portfolio of NDA and ANDA products. IPC Overview
Using our proprietary technologies, our strategy involves the
development of products for partners and the development and
manufacture of our own proprietary products. Currently, we have 15
products in our pipeline at varying stages of development and
regulatory review. Several of these product candidates have been
partnered under drug development arrangements which have or provide
for milestone and success fees, support for internal development
costs, coverage of clinical trial costs, coverage of patent
litigation costs, and royalties or profit sharing on product sales.
We apply our proprietary delivery platform technology and expertise
in pharmaceutics, drug delivery, and drug manufacture with the goal
of minimizing the risk, time, and manufacturing cost of bringing
the finished product to market. Our lead products in the generic,
controlled-release pharmaceutical category are Dexmethylphenidate
XR (dexmethylphenidate hydrochloride), a generic version of Focalin
XR(R), which is an extended-release capsule for the treatment of
Attention Deficit Hyperactivity Disorder, and Carvedilol CR
(carvedilol phosphate), a generic version of Coreg CR(R), which is
an extended release capsule for the treatment of high blood
pressure. In 2008, Focalin(R), including Focalin XR(R), had U.S.
sales of approximately U.S. $350 million, and Coreg(R), including
Coreg CR(R), had U.S. sales of approximately U.S. $300M million.
One of our key non-generic products is an abuse- and
alcohol-resistant, controlled-release oral oxycodone formulation.
This product is covered by pending patent applications for its
novel ReXista(TM) abuse- and alcohol-resistant drug delivery
technology. The product is a unique dosage form, designed to be
resistant to abuse by oral ingestion when crushed or chewed, by
injection when combined with solvents, and by nasal inhalation when
crushed or powdered. The abuse of this important pain relief drug
has been well documented over many years. In 2008, Oxycodone had
U.S. sales of approximately U.S. $2 billion. The product is also
designed to resist release of the entire dose when consumed with
alcohol, a significant problem with some opioid drugs, such as
hydromorphone. Certain statements in this document constitute
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and/or
"forward-looking information" under the Securities Act (Ontario).
These statements include, without limitation, statements regarding
the status of development, or expenditures relating to our
business, plans to fund our current activities, statements
concerning our partnering activities, health regulatory
submissions, strategy, future operations, future financial
position, future revenues and projected costs. In some cases, you
can identify forward-looking statements by terminology such as
"may", "will", "should", "expects", "plans", "anticipates",
"believes", "estimated", "predicts", "potential", "continue",
"intends", "could", or the negative of such terms or other
comparable terminology. We made a number of assumptions in the
preparation of these forward-looking statements. You should not
place undue reliance on our forward-looking statements, which are
subject to a multitude of risks and uncertainties that could cause
actual results, future circumstances or events to differ materially
from those projected in the forward-looking statements. These risks
include, but are not limited to, securing and maintaining corporate
alliances, the need for additional capital and the effect of
capital market conditions and other factors, including the current
status of our programs, on capital availability, the potential
dilutive effects of any financing and other risks detailed from
time to time in our public disclosure documents or other filings
with the securities commissions or other securities regulatory
bodies in Canada and the U.S. Additional risks and uncertainties
relating to IPC and our business can be found in the "Risk Factors"
section of our joint management information circular dated
September 16, 2009, as well as in our other public filings. The
forward-looking statements are made as of the date hereof, and we
disclaim any intention and have no obligation or responsibility,
except as required by law, to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. The unaudited interim consolidated financial
statements, accompanying notes to the unaudited interim
consolidated financial statements, and Management's Discussion and
Analysis for the three and nine months ended September 30, 2009,
will be accessible on IntelliPharmaCeutics Website at
http://www.intellipharmaceutics.com/ and will be available on SEDAR
and EDGAR. Summary financial tables are provided below.
-------------------------------------------------------------------------
INTELLIPHARMACEUTICS LTD. Interim Consolidated Balance Sheets
(Stated in U.S. dollars; Unaudited)
-------------------------------------------------------------------------
As at September 30, December 31, 2009 2008
-------------------------------------------------------------------------
Assets Current assets: Cash $ 10,883 $ 902,213 Accounts receivable
20,526 40,182 Investment tax credits 1,612,094 871,784 Deferred
costs 614,605 - Prepaid expenses and sundry assets 60,736 77,197
-------------------------------------------------------------------------
2,318,844 1,891,376 Property and equipment, net 970,734 1,134,648
-------------------------------------------------------------------------
$ 3,289,578 $ 3,026,024
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and Shareholders' (Deficiency) Equity Current
liabilities: Accounts payable $ 829,618 $ 328,477 Accrued
liabilities 530,966 315,864 Current portion of capital lease
obligations 36,140 32,285 Deferred revenue 458,656 497,149 Due to
related parties 2,303,258 925,830
-------------------------------------------------------------------------
4,158,638 2,099,605 Capital lease obligations 18,280 39,305
Deferred revenue 1,152,016 1,470,189
-------------------------------------------------------------------------
5,328,934 3,609,099
-------------------------------------------------------------------------
Shareholders' deficiency: Capital stock Authorized: 20,000,000
Special Voting Shares, $0.001 par value 40,000,000 common shares,
$0.001 par value Issued and outstanding: 10,850,000 Special Voting
Shares (2008-10,850,000) 10,850 10,850 6,023,944 common shares
(2008 - 6,023,944) 6,024 6,024 Additional paid-in capital
10,482,120 10,482,120 Accumulated other comprehensive income
(107,223) 385,647 Deficit (12,431,127) (11,467,716)
-------------------------------------------------------------------------
(2,039,356) (583,075)
-------------------------------------------------------------------------
$ 3,289,578 $ 3,026,024
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
INTELLIPHARMACEUTICS LTD. Interim Consolidated Statements of
Operations and Comprehensive Loss (Stated in U.S. dollars;
Unaudited)
-------------------------------------------------------------------------
Three months ended Nine months ended September 30 September 30 2009
2008 2009 2008
-------------------------------------------------------------------------
Revenue: Research and development $ 125,590 $ 180,388 $ 468,422 $
1,159,964
-------------------------------------------------------------------------
$ 125,590 $ 180,388 $ 468,422 $ 1,159,964
-------------------------------------------------------------------------
Expenses: Cost of Revenue 86,773 374,712 200,970 1,106,934 Research
and development 156,583 82,254 816,599 242,985 Selling, general and
administrative costs 238,012 363,554 560,159 740,965 Depreciation
98,480 132,965 300,129 465,265
-------------------------------------------------------------------------
579,848 953,485 1,877,857 2,556,149
-------------------------------------------------------------------------
Loss before the undernoted (454,258) (773,097) (1,409,435)
(1,396,185) Foreign exchange gain (loss) 321,750 (136,681) 508,380
(296,982) Interest income 49 12,153 1,566 70,454 Interest expense
(33,280) (17,971) (63,922) (60,471)
-------------------------------------------------------------------------
Net Loss for the period (165,739) (915,596) (963,411) (1,683,184)
Comprehensive Items: Foreign exchange translation adjustment
(324,720) 63,499 (492,870) 74,232
-------------------------------------------------------------------------
Comprehensive loss $ (490,459) $ (852,097) $ (1,456,281) $
(1,608,952)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Loss per share, basic and diluted $ (0.01) $ (0.05) $ (0.06) $
(0.10)
-------------------------------------------------------------------------
Weighted average number of common shares and Special Voting Shares
outstanding, basic and diluted 16,873,944 16,873,944 16,873,944
16,873,944
-------------------------------------------------------------------------
-------------------------------------------------------------------------
DATASOURCE: INTELLIPHARMACEUTICS INTERNATIONAL INC. CONTACT: Graham
Neil, Investor Relations, 30 Worcester Road, Toronto, M9W 5X2, tel:
(416) 798-3001, fax: (416) 798-3007, www. intellipharmaceutics.com,
Copyright