Tikcro Technologies Ltd. (OTC BB: TIKRF) today reported results for the second quarter and six months ended June 30, 2010.
Net loss for the second quarter was $3.2 million or $(0.38) per diluted share. Results for the second quarter included financial expenses of approximately $3.2 million that resulted from the valuation of Tikcro's holdings in BioCancell Therapeutics, Inc., a clinical-stage biopharmaceutical company operating in the area of cancer treatment. Excluding this non cash financial expense, net loss for the second quarter was $71,000 or (0.01) per diluted share. Net loss for the six months ended June 30, 2010 was $1.3 million or $(0.15) per diluted share. Results for the six months ended June 30, 2010 included financial expense of approximately $1.2 million from to the valuation of Tikcro's holdings in BioCancell Therapeutics, Inc. Excluding this non cash financial expense, net loss for six months ended June 30, 2010 was $127,000 or (0.02) per diluted share.
Tikcro holds approximately 30% of Biocancell, taking into account the conversion of a convertible note and exercise of warrants, and approximately 22% on a fully diluted basis. Shares of Biocancell are traded on the Tel Aviv Stock Exchange (TASE). The valuation of the holding in Biocancell is influenced, among other factors, by the share price of Biocancell on TASE.
As of June 30, 2010, the Company had net cash and marketable securities totaling $7.4 million.
BioCancell conducts three on-going clinical trials pursuant to U.S. FDA approved protocols: phase IIb clinical trial for the treatment of superficial bladder carcinoma cancer, phase I/IIa trial for the treatment of pancreatic cancer, and a phase I/IIa clinical trial for the treatment of ovarian cancer. The leading drug BC-819, used in these clinical trials is a double stranded DNA plasmid construct that incorporates the gene for diphtheria toxin (DTA) under the regulation of the promoter sequence for H19 gene. The net result of the mechanism of the drug is a selective tumor cell destruction.