iCo Therapeutics Announces First Quarter 2020 Financial Results
Vancouver, British Columbia--(Newsfile Corp. - July 13, 2020) - iCo Therapeutics (TSXV: ICO) (OTCQB: ICOTF) ("iCo" or the "Company"), today reported financial results for the quarter ended March 31, 2020. Amounts, unless specified otherwise, are expressed in Canadian dollars and presented under International Financial Reporting Standards ("IFRS").
Stated William Jarosz, CEO of iCo Therapeutics Inc., "We were pleased with the positive outcome from our Phase 1b study of our oral amphotericin B asset during the quarter and that we were able to complete the study with encouraging results and minimal disruption given the current Covid-19 pandemic. On iCo-008, we continue to work closely with our partner Alexion in advancing the program."
Q1 2020 Operational and Financial Highlights
In January 2020, the assignment of the IMMUNE sublicense to Alexion was completed. Under the terms of the assignment, Alexion was required to pay US$6 million into the Court in the settlement of IMMUNE's creditor claims in exchange for IMMUNE's rights under the IMMUNE License Agreement.
On February 25, 2020 we announced the successful completion of our Phase 1b study with no serious adverse events. On April 15, 2020, we announced the pharmacokinetic data from this study which showed a doubling in the AUC (0-inf), a measure of drug accumulation, after 10 days dosing compared to day 1 dosing.
On March 9, 2020 Andrew Rae, MBA, resigned from his roles as both President & CEO and Director. Ms. Susan Koppy, a member of iCo's board of directors since 2015, assumed the role of President and Mr William Jarosz, a member of iCo's board of directors since 2006, assumed the role of CEO.
Financial results for Quarter ended March 31, 2020
We incurred a total comprehensive loss of $ 645,570 for the quarter ended March 31, 2020 compared to a total comprehensive loss of $353,680 for the quarter ended March 31, 2019, representing an increased loss of $291,890. The increase in the loss is primarily the result of higher research and development expenses offset by lower general and administrative expenses and higher research and development tax credits recognized in Q1 2020.
Research and development expenses were $670,690 for the quarter ended March 31, 2020 compared to $85,095 for the quarter ended March 31, 2019, representing an increase of $585,595. The increase related to higher contract research expenses for clinical trials conducted on the Oral Amp B program in the quarter ended March 31, 2020.
The Phase 1b study was conducted in Australia, which provides refundable tax credits for qualifying research and development activities conducted there. The refundable tax credit is calculated at 43.5% of the qualifying expenditures and the Company recognized $238,258 in other income as its estimate of the tax refund related to qualifying expenditures for the quarter ended March 31, 2020.
For the quarter ended March 31, 2020 general and administrative expenses were $216,436 compared to $278,767 for the quarter ended March 31, 2019, representing a decrease of $62,331. The decrease reflects lower professional fees during the period. The Company's participation in the IMMUNE bankruptcy process last year caused an increase in professional fees in the corresponding quarter of the prior year.
Liquidity and Outstanding Share Capital
As at March 31, 2020, we had cash and cash equivalents of $479,005 compared to $989,937 as at December 31, 2019.
As at July 13th, 2020, we had an unlimited number of authorized common shares with 153,747,713 common shares issued and outstanding.
For complete financial results, please see our filings at www.sedar.com.
About iCo Therapeutics Inc.
iCo Therapeutics identifies existing development stage assets for use in underserved ocular and infectious diseases. Such assets may exhibit utility in non-ophthalmic conditions outside the Company's core focus areas and if so the Company will seek to capture further value via partnerships. iCo shares trade on the TSX Venture Exchange under the symbol "ICO" and on the OTCQB under the symbol "ICOTF".
For more information, visit the Company website at: www.icotherapeutics.com.
No regulatory authority has approved or disapproved the content of this press release. Neither the TSX Venture Exchange nor its Regulatory Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Forward Looking Statements
Certain statements included in this press release may be considered forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will," and similar references to future periods. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on iCo's current beliefs as well as assumptions made by and information currently available to iCo and relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments, including statements relating to reporting further data regarding studies for Oral Amp Delivery System, the timing of receipt of the statistical analysis for clinical data, the timing, receipt and amount of Australian refundable tax credits, any decrease in research and development expenditures and the completion of additional funding and commencement of additional clinical studies. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based only on information currently available to iCo and speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by iCo in its public securities filings and on its website, actual events may differ materially from current expectations. In evaluating forward-looking statements, readers should consider the risk factors set out herein and in the Company's Annual Information Form dated April 29, 2019, a copy of which is available under iCo's profile on SEDAR at www.sedar.com and as otherwise disclosed in the Company's filings under its profile on SEDAR from time to time. All forward-looking statements are made as of the date of this press release, and iCo disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
iCo Therapeutics Inc.
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