Champions Biotechnology fiscal 2010 operating revenues increase to $4.89 million

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 year ended April 30, 2010.  Full details of the Company's financial results will be available in the Company's Form 10-K at www.championsbiotechnology.com.

For the fiscal year ended April 30, 2010, the Company's operating revenues were $4,893,000 as compared to $3,710,000 for the fiscal year ended April 30, 2009, an increase of 32%.  The Company generated $3,206,000 of revenue in fiscal 2010 from its Personalized Oncology services which assists physicians by providing information that may enhance personalized treatment options for their cancer patients and $1,687,000 of revenue from Preclinical eValuation services which assist drug development companies in the evaluation of their oncology drug candidates.  

Cost of Personalized Oncology services for fiscal 2010 totaled $1,181,000, which resulted in a gross margin of 63% as compared to 50% in fiscal 2009.  The overall increase in gross margin was due to a greater mix of higher-margin business such as personalized vaccines programs during fiscal 2010.

Cost of Preclinical eValuation services for the year totaled $798,000, which resulted in a gross margin of 53% compared to 34% in fiscal 2009. The higher margins in fiscal 2010 were a result from increased efficiencies realized in the Company's second full year of operations.

Research and development expenses for fiscal 2010 totaled $2,695,000 as compared to $1,721,000 in fiscal 2009.  The increase in research and development expenses was mainly attributable to the efforts in building the Company's own drug candidate pipeline and incurring license and option fees for three of our drug compounds, patent fees related to the Company's SG-410 drug candidate and the Biomerk Tumorgraft(TM) expansion program which included the acquisition, propagation, storage and characterization of tumors in Champions' tumorgraft bank.

General and administrative expenses for fiscal 2010 totaled $3,147,000 as compared to $2,127,000 in fiscal 2009.  The increase was principally due to the overall growth of the business, personnel and operating expenses associated with staffing and outfitting the Company's Israel and United Kingdom operations.

For the fiscal year ended April 30, 2010, the Company reported a net loss of $2,923,000 or ($0.09) per share compared to a net loss of $2,242,000 or ($0.07) per share in fiscal 2009.  In addition to the factors described above, our net losses reflect non-cash expenses, i.e., share-based compensation, patent expenses paid in common stock and depreciation of $800,000 or ($0.02) per share in fiscal 2010 compared to $752,000 or ($0.02) in fiscal 2009.

The Company's cash position on April 30, 2010 was $2,572,000 compared to $2,745,000 on April 30, 2009 which included $1,017,000 held in a short term certificate of deposit.

Fiscal 2010 Highlights:

• Experienced an increase in top-line revenues of 32% with overall gross margins increasing from 49% to 60%, year-over-year;
• Achieved record results in the fourth quarter with revenues of $1,900,000;
• Experienced year-over-year top-line revenue growth of 290% in the Preclinical eValuation business;
• Acquired three new drug compounds, now totaling four in development;  
• Continued to expand its Biomerk Tumorgraft platform and has approximately 300 tumorgrafts available and/or in development at April 30, 2010, representing all of the major solid tumor indications;
• Launched its Live Tumor Banking program, which is detailed at our website:  www.personalizedcancertreatment.com;
• Entered into a collaboration agreement with PinnacleCare, which brings together two of the leading companies in Personalized Medicine;
• Received signed subscription agreements totaling $3.0 million of which $2.2 million has been received in its private placement to accredited investors; and
• Engaged Eric Rowinsky, M.D., a former Chief Medical Officer and Senior Vice President of ImClone Systems, as a consultant to serve as the Company's first Chief Medical Officer.

David Sidransky, M.D., Chairman of the Board of Champions Biotechnology, Inc., noted, "The progress made in 2010 has been very promising.  As we move into 2011, the Company will continue to work in developing drug compounds, and leveraging our tumorgraft platform."  Dr. Sidransky noted that the Company is now a global organization participating in opportunities for oncology care with revenue-producing operations in the United States, United Kingdom and Israel.