ConjuChem Biotechnologies reports financial results for fiscal year ended October 31, 2009

ConjuChem Biotechnologies Inc. (TSX: CJB) today announced financial results for its fiscal year ended October 31, 2009.

"We achieved an important milestone this year by confirming that PC-DAC(TM):Exendin-4 achieved statistically significant glycemic control and weight loss in Phase II clinical trials for Type 2 diabetes. The data achieved our efficacy and safety objectives and confirmed statistically significant reductions in HbA1c versus both baseline and placebo seen in all active treatment groups throughout the treatment period," said Mark Perrin, President and CEO of ConjuChem. "We achieved these results within a challenging capital markets environment. Based on our current situation, the Board of Directors recently established a Special Committee of independent Board members to thoroughly explore and evaluate all strategic alternatives for the Company. While we have built a strong foundation with our albumin conjugation technology platform, we have an obligation to consider all legitimate options that may enhance value for stakeholders. We have reached a stage that necessitates we explore all opportunities available to us. Our intention is to report on this process once the Board has approved a specific transaction or other strategic alternative."

The Company's net loss for the quarter ended October 31, 2009 amounted to $2.5 million or ($0.01) per share, compared to $10.9 million or ($0.04) per share, for the quarter ended October 31, 2008. The net loss for the year ended October 31, 2009 amounted to $15.8 million or ($0.06) per share, compared to $39.4 million or ($0.16) per share, for the year ended October 31, 2008. The decrease is mainly attributable to a decrease in net research and development expenses of $15.8 million described below resulting from the completion of the Phase II clinical trials for PC-DAC(TM):Exendin-4 in November 2008 and a reduction in research activities.

The Company recorded interest income on cash and short-term investments that amounted to $13,226 for the quarter ended October 31, 2009 compared to $194,703 for the same period last year. Interest income for the year ended October 31, 2009 was $167,515 versus $1.4 million for fiscal 2008. The decrease in interest income was a result of a reduced investment portfolio base combined with a marked general decrease in market rates.

Net research and development expenses have decreased significantly in the quarter ended October 31, 2009 to a recovery of expenses of $89,654 as compared to $6.6 million for the quarter ended October 31, 2008. Net research and development expenses amounted to $5.7 million for the year ended October 31, 2009 compared to $21.5 million for fiscal 2008. The decrease is largely attributable due to the completion of the Phase II clinical trials for PC-DAC(TM):Exendin-4 in November 2008, a reduction in research activities and to the recovery of the clinical trials costs from a clinical research organization for a PC-DAC(TM):Exendin-4 study.

General and administrative costs amounted to $819,839 for the quarter ended October 31, 2009 compared to $2.0 million for the quarter ended October 31, 2008. For the year ended October 31, 2009 general and administrative costs amounted to $2.9 million, compared to the $6.0 million incurred for the same period the previous year. The decrease in general and administrative expenses is largely attributable to fees related to the early redemption of the convertible senior unsecured notes in the year ended October 31, 2008 and by the reversal of a tax withholding contingency amounting to $1,257,000 in 2009.

At October 31, 2009, the Company had cash and cash equivalents and short-term investments totalling $7.5 million and an additional $1.6 million in accounts receivables and investment tax credits receivable, compared to $21.1 million as at October 31, 2008. As at October 31, 2009, working capital amounted to $6.1 million. The Company believes that its current cash and cash equivalents, investments and interest income will be sufficient to carry out operations into the third quarter of the year ending 2010.

Source: CONJUCHEM BIOTECHNOLOGIES INC.