TORONTO, Oct. 15, 2010 (GLOBE NEWSWIRE) -- Intellipharmaceutics International Inc. (Nasdaq:IPCI) (TSX:I), a pharmaceutical company specializing in the research, development and manufacture of novel or generic controlled release and targeted release oral solid dosage drugs, today reported the results of operations for the three and nine months ended August 31, 2010. All comparative information is that of the predecessor company Intellipharmaceutics Ltd. ("IPC Ltd"). All dollar amounts referenced herein are in United States dollars unless otherwise noted.

The loss for the three months ended August 31, 2010 was $2.1 million, or $0.19 per common share, compared with a loss of $0.2 million, or $0.02 per common share for the three months ended September 30, 2009. The loss for the nine months ended August 31, 2010 was $3.9 million, or $0.35 per common share, compared with a loss of $1.0 million, or $0.10 per common share for the nine months ended September 30, 2009. The increased period-over-period loss is mainly due to increases in both research and development expenses and increases in selling, general and administrative expenses. 

The Company increased research and development expenditures as a result of a stronger financial position during the three and nine months ended August 31, 2010 in comparison to the three and nine months ended September 30, 2009.  This stronger financial position is allowing Intellipharmaceutics to pursue its strategy of advancing its products from the formulation stage through product development, regulatory approval and manufacturing before out-licensing marketing and sales rights to established organizations.

The increase in selling, general and administrative expenses for the three months ended August 31, 2010 is due to an increase in expenses related to wages and marketing costs incurred during the period which were not incurred in the comparable period, as Intellipharmaceutics was not a publicly traded company. For the nine months ended August 31, 2010 the increase in selling, general and administrative expenses is due to an increase in expenses related to legal fees, wages, and marketing costs incurred during the period which were not incurred in the comparable period, as Intellipharmaceutics was not a publicly traded company.

As at August 31, 2010, Intellipharmaceutics' cash totaled $2.4 million, compared with $4.1 million as at May 31, 2010. The Company believes that it may receive a refund of approximately C$1.0 million during the fourth quarter of fiscal 2010, comprised of scientific research & development tax credits. The continuation of our research and development activities and the commercialization of our products are dependent upon our ability to fund these activities through equity or debt financings, payments received under marketing and/or development agreements as well as other financing opportunities. Depending on the progress of these initiatives, the Company may elect to increase or reduce expenses associated with its research programs, and therefore the expected cash burn cannot be projected on a go forward basis.          

Corporate Update
  • On June 14, 2010 Intellipharmaceutics announced that it filed an ANDA with the FDA for a generic version of Protonix® (delayed release pantoprazole sodium).   
  • On July 2, 2010 Intellipharmaceutics announced that Wyeth LLC, a wholly owned subsidiary of Pfizer Inc., filed suit against us for patent infringement in the United States District Court for the District of Delaware and for the Southern District of New York, relating to its generic version of Effexor XR® (venlafaxine hydrochloride extended release) capsules. Lawsuits such as these are an ordinary and expected part of the process of obtaining approval to commercialize a generic drug product in the United States. The Company remains confident that its generic versions of Effexor XR® do not infringe those patents. Intellipharmaceutics intends to vigorously defend against the complaints described above.

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 August 31, 2010, will be accessible on Intellipharmaceutics' Website at www.intellipharmaceutics.com and will be available on SEDAR and EDGAR. 

Summary financial tables are provided below.

About Intellipharmaceutics

Intellipharmaceutics International Inc. is a pharmaceutical company specializing in the research, development and manufacture of novel or generic controlled release and targeted release oral solid dosage drugs. The Company's patented Hypermatrix™ technology is a unique and validated multidimensional controlled-release drug delivery platform that can be applied to the efficient development of a wide range of existing and new pharmaceuticals. Based on this technology, Intellipharmaceutics has a pipeline of products in various stages of development in therapeutic areas that include neurology, cardiovascular, GIT, pain and infection.

The Intellipharmaceutics International Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6957

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, the timing of our programs to research, develop and commercialize our products, the timing and costs of obtaining regulatory approvals, our estimates regarding our capital requirements and future revenues, the timing and amount of investment tax credits, 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 annual information form dated February 26, 2010 and Form 20-F for the year ended November 30, 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.
Intellipharmaceutics International Inc.
Unaudited consolidated balance sheets
(Stated in U.S. dollars)
     
   August 31,   November 30, 
  2010 2009
   $   $ 
Assets    
Current     
Cash   2,355,404  8,014,492
Accounts receivable  2,614  5,427
Investment tax credits  1,099,075  1,840,044
Prepaid expenses, sundry and other assets  183,208  175,248
   3,640,301  10,035,211
     
Property and equipment, net  974,062  1,046,121
   4,614,363  11,081,332
     
Liabilities     
Current     
Accounts payable   425,735  1,323,368
Accrued liabilities  139,090  540,604
Employee cost payable  558,660  501,114
Current portion of capital lease obligations  20,288  35,595
Due to related parties   1,551,726  2,360,181
   2,695,499  4,760,862
     
Warrant liability  63,843  226,268
Capital lease obligations  941  12,862
Deferred revenue  8,906  1,449,326
   2,769,189  6,449,318
     
Shareholders' equity    
Capital stock     
Authorized    
Unlimited common shares without par value    
Unlimited preference shares    
Issued and outstanding    
10,907,054 common shares   16,969  16,969
November 30, 2009 --     
10,907,054 common shares)    
Additional paid-in capital  19,268,121  18,263,340
Accumulated other comprehensive loss   (276,003)  (341,844)
Deficit  (17,163,913)  (13,306,451)
   1,845,174  4,632,014
     
   4,614,363  11,081,332
         
Intellipharmaceutics International Inc.
Unaudited interim consolidated statements of operations and comprehensive loss
(Stated in U.S. dollars)
   Three months ended   Nine months ended 
   August 31, 2010   Sept 30, 2009   August 31, 2010   Sept 30, 2009 
   $   $   $   $ 
         
Revenue        
Research and development  --  125,590  1,452,221  468,422
Other services  --  --  --  --
   --  125,590  1,452,221  468,422
         
Expenses        
Cost of revenue  --  86,773  --  200,970
Research and development   1,483,128  156,583  3,357,554  816,599
Selling, general and administrative  526,644  238,012  1,913,301  560,159
Depreciation  62,531  98,480  178,414  300,129
   2,072,303  579,848  5,449,269  1,877,857
         
Loss before the undernoted  (2,072,303)  (454,258)  (3,997,048)  (1,409,435)
Fair value adjustment of warrants  32,376  --  164,397  --
Net foreign exchange gain (loss)  (51,413)  321,750  23,542  508,380
Interest income  1,938  49  25,672  1,566
Interest expense  (24,060)  (33,280)  (74,025)  (63,922)
Loss  (2,113,462)  (165,739)  (3,857,462)  (963,411)
Other comprehensive (loss) income        
Foreign exchange translation adjustment  28,588  (324,720)  65,841  (492,870)
Comprehensive loss  (2,084,874)  (490,459)  (3,791,621)  (1,456,281)
         
Loss per common share, basic and diluted  (0.19)  (0.02)  (0.35)  (0.10)
         
Weighted average number of common shares outstanding, basic and diluted  10,907,057  9,327,716  10,907,057  9,327,716
CONTACT: Intellipharmaceutics International Inc.         Glenn Neumann, Director of Investor Relations         416-798-3001 x123         investors@intellipharmaceutics.com

Intellipharmaceutics International Inc. Logo

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX