Isotechnika second-quarter revenue from continuing operations increases to $1.49 million

Isotechnika Pharma Inc. (TSX:ISA) today announced financial results for the second quarter ended June 30, 2010.

Financial Results

The Company reported a consolidated net loss of $486,000 or $0.004 per common share for the three months ended June 30, 2010, as compared to a consolidated net loss of $472,000 or $0.004 per common share for the same period in 2009. For the six months ended June 30, 2010, the consolidated net income was $310,000 or $0.002 per common share compared to a consolidated net loss of $4.60 million or $0.04 per common share for the comparable period in 2009.

The Company's financial and operational resources in the second quarter ended June 30, 2010, were focused primarily on providing the required assistance for its partner Lux Biosciences, Inc. regulatory submissions.

The Company reported income from discontinued operations of $170,000 or $0.001 per common share for the second quarter of 2010 compared to $255,000 or $0.002 per common share for the second quarter of 2009. For the six months ended June 30, 2010, the income from discontinued operations was $1.9 million or $0.014 per common share compared to $529,000 or $0.01 per common share for the comparable period in 2009. The Company reflected the diagnostic segment as discontinued operations when the Company amended its agreement with Paladin Labs Inc. (Paladin) concerning its remaining stake in the revenue stream from the Isodiagnostika business sold to Paladin on June 18, 2009.

The Company reported a net loss from continuing operations of $656,000 or $0.005 per common share for the second quarter ended June 30, 2010, compared to $727,000 or $0.006 per common share for the second quarter ended June 30, 2010. For the six months ended June 30, 2010, the net loss from continuing operations was $1.59 million or $0.012 per common share compared to a net loss from continuing operations of $5.13 million or $0.05 per common share for the comparable period in 2009.

Revenue from continuing operations increased to $1.49 million for the second quarter of 2010, compared to $156,000 for the same period in 2009. The Company recorded revenue from continuing operations of $2.95 million for the six months ended June 30, 2010, as compared to $413,000 for the same period in 2009.

Research and development expenditures decreased to $1.02 million in the second quarter of 2010, compared to $1.49 million in the second quarter of 2009. The Company incurred net research and development expenditures of $2.43 million for the six months ended June 30, 2010, as compared to $3.90 million for the same period in 2009.

Corporate and administration decreased to $684,000 for the second quarter of 2010, compared to $1.32 million for the second quarter of 2009. Isotechnika incurred corporate and administration expenditures of $1.41 million for the six months ended June 30, 2010, as compared with 2.34 million for the same period in fiscal 2009.

The Company, as at June 30, 2010, had $4.20 million in cash and cash equivalents, accounts and other receivables of $473,000 and accounts payable and accrued liabilities of $1.01 million. The Company will need to raise additional cash in the near future.

For further discussion of the Company's financial results for the three months ended June 30, 2010, the unaudited interim consolidated financial statements and the Management's Discussion and Analysis for the second quarter ended June 30, 2010 are accessible on Isotechnika's Web site at www.isotechnika.com or at www.sedar.com.

Lux Biosciences, Inc. Update

The company announced on August 4, 2010 that Lux received a Complete Response letter (CRL) from the FDA regarding their NDA for voclosporin. The FDA requested additional information and recommended that an additional clinical trial be conducted in order to consider a future approval of voclosporin for this indication.