Akela Pharma reports results for the three and six months ended June 30, 2012

AUSTIN, TX, Aug. 14, 2012 /CNW Telbec/ - Akela Pharma, Inc. ("Akela"), (TSX: AKL), an industry leader in providing contract drug formulation development as well as pharmaceutical clinical and commercial manufacturing, today announced its financial results for the three and six months ended June 30, 2012.

Consolidated net revenues for the three months ended June 30, 2012 were $2.8 million, as compared to $3.1 million, for the same period during the previous year.  Consolidated revenues for the six months ended June 30, 2012 were $3.7 million as compared to $7.3 million for the same period in 2011.

Consolidated net income (loss) for the three months ended June 30, 2012 was $0.71 million, or $0.02 per share, versus ($0.52) million or ($0.02) per share, for the same period in 2011. Consolidated net income (loss) for the six months ended June 30, 2012 was ($1.45) million vs. $0.48 million, for the same period in 2011.

                 
                 
    Three Months Ended   Six Months Ended
    June 30,   June 30,
    2012   2011   2012   2011
                 
Total Income (Loss) and Comprehensive Income (Loss)   709   (516)   (1,453)   478
                 
Earnings per share                
Basic net income (loss) per share   0.02   (0.02)   (0.04)   0.01
  Diluted net income(loss)  per share   0.02   (0.02)   (0.04)   0.01
                 
Basic weighted average number of shares outstanding   32,390,338   32,390,338   32,390,338   32,390,338
  Diluted weighted average number of shares outstanding   33,676,225   32,525,685   33,676,225   32,525,685
                 


The Company had a cash balance of $0.2 million as of June 30, 2012 compared with $0.8 million as of March 31, 2012.

Akela Pharma Inc. announced two promotions today with W. Blair West, Ph.D., Akela's senior director of pharmaceutical operations being named chief scientific officer and Berenice Brownlee, Akela's vice president of finance, being named chief financial officer.

About Akela Pharma Inc.

Through PharmaForm, Akela's wholly owned subsidiary is a leading specialty contract service provider in the area of pharmaceutical dosage form development, CMC and FDA commercial manufacturing, specializing in controlled release and bioavailability enhancement technologies, such as hot melt extrusion, spray drying, and liquid filled capsules. Through its diverse offerings, PharmaForm solutions help pharmaceutical and biotechnology clients reach their development targets, reduce development costs and accelerate time-to-market.

Akela's common shares trade on The Toronto Stock Exchange ("TSX") under the symbol "AKL" with 32.4 million shares outstanding.

This press release contains statements which may constitute forward-looking information under applicable Canadian securities legislation or forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1955. Such forward-looking statements or information may include financial and other projections as well as statements regarding the company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the company's underlying assumptions. The words "may", "would", "could", "will", "likely", "expect", anticipate", "intend", "plan", "forecast", "project", "estimate" and "believe" or other similar words and phrases may identify forward-looking statements or information. Persons reading this press release are cautioned that such statements or information are only expectations, and that the company's actual future results or performance may be materially different.

Forward-looking statements or information in this press release include, but are not limited to, statements or information concerning our ongoing drug development programs and collaborations as well as the possible receipt of future payments upon achievement of milestones.

Such forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause our actual results, events or developments to be materially different from results, events or developments expressed or implied by such forward-looking statements or information. Such factors include, among others, the possibility that risks associated with requirements for approvals by government agencies such as the FDA before products can be tested in clinical trials; the possibility that such government agency approvals will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to advance development; our dependence on suppliers, collaborative partners and other third parties and the prospects and timing for negotiating supply agreements, corporate collaborations or licensing arrangements; our ability to attract and retain key personnel; and other factors as described in detail in our filings with the Canadian securities regulatory authorities at http://www.sedar.com.

Assumptions underlying our expectations regarding forward-looking statements or information contained in this press release include, among others, that we will raise enough capital, on reasonable terms and in a timely manner; that we will retain our key personnel; that we will obtain the necessary regulatory approvals.

In the event that any of these assumptions prove to be incorrect, or in the event that we are impacted by any of the risks identified above, we may not be able to continue in our business as planned.

For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with Canadian securities regulatory authorities, filed on SEDAR at http://www.sedar.com.

All forward-looking statements and information made herein are based on our current expectations as of the date hereof and we disclaim any intention or obligation to revise or update such forward-looking statements and information to reflect subsequent events or circumstances, except as required by law.



AKELA PHARMA INC.
Condensed Consolidated Interim Statements of Financial Position
(unaudited)
as at June 30, 2012 and December 31, 2011
(In thousands of US dollars, except share and per share data)

  As at June 30, 2012   As at December 31,
2011
           
Assets            
           
Current assets:          
  Cash $ 233   $ 57
  Accounts receivable    2,000     1,432
  Prepaid expenses and other current assets   60     279
  Total current assets:   2,293     1,768
Non-current assets:          
  Property and equipment (Note 6)   1,857     2,249
  Intangible assets (Note 7)   15     30
  Other non-current assets   51     120
  Total non-current assets:   1,923     2,399
  $ 4,216   $ 4,167
           
Liabilities and Shareholders' Deficiency          
           
Current liabilities:          
  Accounts payable and accrued liabilities $ 5,407   $ 6,250
  Deferred revenue   276     287
  Income Tax Payable    148     154
  Current portion of long-term debt (Note 9)   2,356     2,513
  Total current liabilities   8,187     9,204
Non-current liabilites          
  Long-term debt (Note 9)   7,802     5,322
  Total non-current liabilities   7,802     5,322
Shareholders' deficiency:          
  Common shares (unlimited authorized, 32,390,338 common shares issued and outstanding with no par value at June 30, 2012 and December 31, 2011, respectively)   67,739     67,739
  Additional paid-in capital    8,553     8,514
           
  Deficit   (88,065)     (86,612)
  Total shareholders' deficiency   (11,773)     (10,359)
           
Commitments, contingencies and guarantees           
           
  $ 4,216   $ 4,167


The accompanying notes are an integral part of these condensed consolidated interim financial statements. 

Approved by the Board:    
     
Seth E. Lemler (signed), Chairman of the Board   Gordon H. Busenbark, (signed), Chairman of the Audit Committee



AKELA PHARMA INC.
Condensed Consolidated Interim Statements of Income and Comprehensive Income
(unaudited)
For the three and six months ended June 30, 2012 and 2011
(In thousands of US dollars, except share and per share data)

               
        Three Months Ended
June 30,
    Six Months Ended
June 30,
        2012   2011     2012   2011
                       
Revenues (Note 2(n))   $ 2,791 $ 3,080   $ 3,646 $ 7,270
                       
Expenses:                    
  Direct costs     956   1,230     2,054   2,585
  Selling, general and administrative     1,310   1,218     2,578   2,393
  Research and development     -   69     -   133
  Stock-based compensation (Note 2(p))     (30)   20     39   47
  Amortization of property and equipment (Note 6)     216   220     432   443
  Amortization of intangible assets (Note 7)     6   12     15   24
  Interest on long-term debt (Note 9)     96   101     209   126
  Foreign exchange (gain) loss     (472)   726     (228)   1,041
  Total expenses     2,082   3,596     5,099   6,792
                       
Income (loss) before income taxes     709   (516)     (1,453)   478
                       
Total Income (Loss) and Comprehensive Income (Loss)     709   (516)     (1,453)   478
                     
Earnings per share                    
Basic net income (loss) per share     0.02   (0.02)     (0.04)   0.01
  Diluted net income(loss)  per share   $ 0.02 $ (0.02)   $ (0.04) $ 0.01
                       
Basic weighted average number of shares outstanding     32,390,338   32,390,338     32,390,338   32,390,338
  Diluted weighted average number of shares outstanding     33,676,225   32,525,685     33,676,225   32,525,685


The accompanying notes are an integral part of these condensed consolidated interim financial statements.

AKELA PHARMA INC.
Condensed Consolidated Interim Statements of Cash Flows
(unaudited)
For the six months ended June 30, 2012 and 2011
(In thousands of US dollars, except share and per share data)

 

   
  June 30,
  2012 2011
Cash flows from operating activities:        
  Net income/(loss) and comprehensive income(loss)  $ (1,453)  $ 478
  Adjustments for:        
    Amorization of property and equipment    432   443
    Amortization of intangible assets   15   24
    Stock-based compensation   39   47
    Unrealized foreign exchange (gain) loss   (228)   529
    Capitalized interest   209   -
    Future income taxes   -   -
  Net changes in operating assets and liabilities (Note 12)   (1,098)   (1,777)
    (2,084)   (256)
Cash flows from financing activities:        
  Proceeds from issuance of long term debt   2,300   -
    2,300   -
Cash flows from investing activities:        
  Acquisition of property and equipment   (40)   -
         
Net increase (decrease) in cash and cash equivalents   176   (256)
         
Cash and cash equivalents, beginning of period   57   474
         
Effect of exchange rate changes   -   -
         
Cash and cash equivalents, end of period  $ 233  $ 218
         
Cash and cash equivalents are composed of:        
  Cash   233   141
  $ 233 $ 141

Supplemental cash flow disclosure (Note 12)
The accompanying notes are an integral part of these condensed consolidated interim financial statements.

 

SOURCE AKELA PHARMA INC.