Saturday, August 3, 2019

Citius Provides Developmental Plans for Mino-Wrap

Source:  Citius Pharmaceuticals,  Inc. 7/30/2019

Mino-Wrap to be Developed Through an IND Process

Citius Pharmaceuticals, Inc. ("Citius") ("Company") (NASDAQ: CTXR), a specialty pharmaceutical company focused on adjunctive cancer care and critical care drug products, today reported the Company's decision to develop Mino-Wrap as a drug through the Investigational New Drug ("IND") process. The FDA's IND program is the means by which a pharmaceutical company obtains permission to start human clinical trials and to ship an experimental drug across state lines before a marketing application for the drug has been approved.
"Mino-Wrap is a combination product that is designed to provide both a cushioning element between the tissue expander ("TE") and surrounding tissue reducing post-surgical inflammation, and to prevent colonization of the surgical pocket and the TE device following mastectomy," said Mr. Myron Holubiak, President and CEO of Citius Pharmaceuticals.  "We have had extensive interactions with the FDA's Center for Devices and Radiological Health Devices ("CDRH") and have decided that we should follow the Center for Drug Evaluation and Research ("CDER") IND route. This decision was made based on the Mino-Wrap's primary mode of action ("PMOA") which is to reduce microbial colonization and infection. We plan to communicate further developments in the Mino-Wrap program after we secure and have a pre-IND meeting with FDA."
The target patient population in the U.S. is approximately 100,000 women.  Citius will also be exploring a designation as an "Orphan Drug" with the Office of Orphan Products Development ("OOPD"). The Company also intends to apply for a Qualified Infectious Disease Product ("QIDP") designation for antibacterial drug candidates intended to treat serious or life-threatening infections and to take advantage of expediting mechanisms (e.g., fast-track and priority review).
About Mino-WrapMino-Wrap is a novel approach to reducing post-operative infections associated with surgical implants. Mino-Wrap is a liquefying gel-based wrap containing minocycline and rifampin for reducing tissue expander (TE) infections following breast reconstructive surgeries.  It is a laminate film comprised of porcine gelatin plasticized with glycerol.  Mino-Wrap also contains the antibiotics minocycline and rifampin to reduce bacterial bioburden on implantable devices preventing colonization over a sustained period of time.  In the setting of breast reconstruction, Mino-Wrap provides more durable antimicrobial protection of the implant-tissue interface than peri-operative irrigation with antibiotic solutions (the current standard of care).  Both porcine gelatin (and collagen) as well as the combination of minocycline and rifampin have long histories of successful medical use in implantable devices in multiple anatomical settings. 
Tissue Expanders and Infection RiskA common breast reconstruction technique is tissue expansion, which involves expansion of the breast skin and muscle using a temporary tissue expander. After a few months, the expander is removed and the patient receives either microvascular flap reconstruction, or the insertion of a permanent breast implant. This type of breast reconstruction requires two separate operations.  A breast tissue expander is an inflatable breast implant designed to stretch the skin and muscle to make room for a future, more permanent implant. Through a tiny valve mechanism located inside the expander, saline is periodically injected to gradually fill the expander over several weeks or months. The process usually begins three to four weeks after mastectomy. After the skin over the breast area has stretched enough, the expander is removed in a second operation and either flap reconstruction or a permanent implant is inserted. Infection is one of the most common complications of tissue expanders and implants during breast reconstruction, with an infection rate ranging from 2.5 to 24 percent.
About Citius Pharmaceuticals, Inc.Citius is a specialty pharmaceutical company dedicated to the development and commercialization of critical care products, with a focus on anti-infectives, cancer care and unique prescription products that use innovative, patented or proprietary formulations of previously-approved active pharmaceutical ingredients. We seek to achieve leading market positions by providing therapeutic products that address unmet medical needs; by using previously approved drugs with substantial safety and efficacy data, we seek to reduce the risks associated with pharmaceutical product development and regulatory requirements. Citius develops products that have intellectual property protection and competitive advantages to existing therapeutic approaches. For more information, please visit www.citiuspharma.com.


Citius Pharmaceuticals' Mino-Lok® Highly Efficacious in Rapidly Eradicating Candida auris

Source:  Citius Pharmaceuticals,  Inc. 5/13/2019

In Vitro Study at MD Anderson Cancer Center Labs Shows Mino-Lok Components to be Effective in Completely Eradicating All 10 Strains of Candida Auris Tested

Citius Pharmaceuticals, Inc. ("Citius") (Nasdaq: CTXR), a specialty pharmaceutical company focused on adjunctive cancer care and critical care drug products, provided a report today on the in vitro efficacy of Mino-Lok against various strains of Candida auris
Candida auris ("C. auris") is a fungus that causes serious infections. C. auris can cause bloodstream infections and even death, particularly in hospital and nursing home patients with serious medical problems. More than 1 in 3 patients with invasive C. auris infection die. It's often resistant to most antifungal agents commonly used to treat Candida infections. Although C. auris was just discovered in 2009, it has spread quickly and caused infections in more than a dozen countries. Patients who have been hospitalized in a healthcare facility a long time, have a central venous catheter, or other lines or tubes entering their body, or have previously received antibiotics or antifungal medications, appear to be at highest risk of infection with this yeast.
Mr. Myron Holubiak, CEO of Citius, said, "We are very enthused Mino-Lok has shown strong activity against a significant number of C. aurisstrains and that complete eradication occurred within an hour of exposure. Fortunately, our patients have not encountered any C. aurisCLABSIs to date in our clinical trials.  While these data for Mino-Lok are highly encouraging as they relate to Candida, in vitro data do not necessarily correlate with clinical results; and, we recognize more work needs to be done. The company is currently studying Mino-Lok in a phase 3 trial in over 40 participating institutions, all located in the U.S."
Blood stream infections due to Candida auris are an emerging public health concern due to high prevalence of antifungal resistance and significant rates of patient mortality.  C. auris is typically highly resistant; and, several strains have been identified with elevated MICs to all major classes of antifungals.  Previously Citius reported that Mino-Lok was highly effective in clinical trials that evaluated salvage of catheters in patients with highly virulent bacterial infections.  In this laboratory study, Mino-Lok was evaluated in its ability to eradicate C. aurisin mature biofilms in vitrowithin an hour of exposure*.  
* Data on file.
Mino-Lok®
Mino-Lok is an antibiotic lock solution used to treat patients with CLABSIs/CRBSIs. CLABSIs/CRBSIs are very serious, especially in cancer patients receiving therapy through central venous catheters (CVCs), and in hemodialysis patients for whom venous access presents a challenge.  There are currently no approved therapies to salvage infected central venous catheters (CVCs). 
About Citius Pharmaceuticals, Inc.
Citius is a specialty pharmaceutical company dedicated to the development and commercialization of critical care products, with a focus on anti-infectives, cancer care and unique prescription products that use innovative, patented or proprietary formulations of previously approved active pharmaceutical ingredients. We seek to achieve leading market positions by providing therapeutic products that address unmet medical needs. By using previously approved drugs with substantial safety and efficacy data, we seek to reduce the risks associated with pharmaceutical product development and regulatory requirements. Citius develops products that have intellectual property protection and competitive advantages to existing therapeutic approaches. For more information, please visit www.citiuspharma.com.

Citius Pharmaceuticals Presents Data on Mino-Lok® Showing 98% Clinical Efficacy

Source: Citius Pharmaceutical,  Inc. 8/30/2019

The Data Provides Proof of Salvaging Central Venous Catheters Colonized with Highly Virulent Pathogens in Patients with CLABSI/CRBSI


Citius Pharmaceuticals, Inc. ("Citius") (Nasdaq: CTXR), a specialty pharmaceutical company focused on adjunctive cancer care and critical care drug products, provided a report today on the clinical efficacy of Mino-Lok against various pathogens that are encountered in colonized catheters that cause bacteremia, either central line associated bloodstream infection ("CLABSI") or catheter related bloodstream infection ("CRBSI"). In a meta-analysis of two separate studies conducted in four institutions in four different countries (see table), it was shown that Mino-Lok was 98% effective (49/50) in salvaging catheters that caused bacteremia. These data included Staph. aureus, and a number of gram negative, highly virulent pathogens. 
Mino-Lok Therapy (MLT): Analysis of CVC Salvage by Pathogen
(meta-analysis of four centers*)
Bacteria causing bacteremia
MDA MLT 
Treated1
(n)
Ex-U.S. MLT 
Treated2
(n)
All MLT
Treated
(n)
Catheters 
Salvaged
(n/N) (%)
Gram +
16
10
26
26/26 (100%)
Coagulase negative staphylococci (CNS)
5
7
12
12
Streptococcus  
5
1
6
6
Staphylococcus aureus3
4
1
5
5
Enterococcus4   
2
1
3
3





Gram -
14
10
24
23/24 (96%)
E. coli5  
7
2
9
9
Pseudomonas  
3
1
4
4
Klebsiella   
1
4
5
5
Enterobacter  
3
1
4
4
Burkholderia cepacia 
0
1
1
0
Rhizobium radiobacter  
0
1
1
1





Total subjects treated
30
20
50
49/50 (98%)
*30 patients treated at MD Anderson Cancer Center in U.S.; nine patients treated at American University of Beirut Medical Center in Beirut, Lebanon; nine patients treated at Hospital Israelita Albert Einstein in Sao Paulo, Brazil; and two patients treated at St. Luke's International Hospital in Tokyo, Japan.

1.  Raad I, et al. Antimicrob Agents Chemother. 2016; 60(6): 3426-3432.
2.  Hachem R, et al. Expert Rev Med Devices. 2018; 15(6):461-466.
3.  One subject in the MDA study was also positive for Corynebacterium.
4.  One subject in the MDA study was also positive for Corynebacterium.
5.  One subject in the Ex-US study was also positive for Streptococcus.
Mr. Myron Holubiak, CEO of Citius, said, "The changing microbiology of catheter associated bacteremia in cancer patients is a very important development. Gram negative organisms and fungi such as Candida have increased substantially since the 1990s and present difficult treatment challenges. Furthermore, the low salvage rates with antibiotic locks for CLABSI/CRBSI caused by S. aureus are also a significant concern. The current evidence for antibiotic locks is mainly based on treatment for coagulase-negative staphylococci. IDSA guidelines do not support antibiotic locks for CLABSI/CRBSI with S. aureusor yeast, or resistant gram-negative pathogens. We have now demonstrated that Mino-Lok may be very effective clinically in salvaging catheters that have been colonized with a wide range of pathogens including the most virulent.  While the clinical data for Mino-Lok are highly encouraging as they relate to these highly virulent pathogens, we recognize more work needs to be done. The company is currently studying Mino-Lok in a phase 3 trial in participating institutions, all located in the U.S."
Mino-Lok®
Mino-Lok is an antibiotic lock solution used to treat patients with CLABSIs/CRBSIs. CLABSIs/CRBSIs are very serious, especially in cancer patients receiving therapy through central venous catheters (CVCs), and in hemodialysis patients for whom venous access presents a challenge.  There are currently no approved therapies to salvage infected central venous catheters (CVCs). 
About Citius Pharmaceuticals, Inc.
Citius is a specialty pharmaceutical company dedicated to the development and commercialization of critical care products, with a focus on anti-infectives, cancer care and unique prescription products that use innovative, patented or proprietary formulations of previously approved active pharmaceutical ingredients. We seek to achieve leading market positions by providing therapeutic products that address unmet medical needs. By using previously approved drugs with substantial safety and efficacy data, we seek to reduce the risks associated with pharmaceutical product development and regulatory requirements. Citius develops products that have intellectual property protection and competitive advantages to existing therapeutic approaches. For more information, please visit www.citiuspharma.com.

Friday, August 2, 2019

Zomedica Announces Initiation of a Digital Data Platform Enhancing its Diagnostic Pipeline

Source:  Zomedia Pharmaceuticals, Inc. 7/17/19

Zomedica Pharmaceuticals Corp. (NYSE American: ZOM) (TSX-V: ZOM), a veterinary diagnostic and pharmaceutical company, announced it has initiated the development of a digital customer data platform to enhance customer experience and its diagnostic pipeline.

Development efforts are focused on providing veterinarians access to diagnostic test result data and insights into patterns of disease across animal populations. The platform is also intended to support veterinary teams with clinically relevant business services, including inventory management and key performance metrics reporting. Zomedica believes that the data provided through the platform will enable it to provide valuable insights from its entire pipeline of diagnostic testing assays to veterinary care teams, with the potential to improve the standard of care and patient outcomes.

The digital platform is being designed to seamlessly integrate with all of its platforms beginning with TRUFORMA™, Zomedica’s first to market, point-of-care biosensor platform. Zomedica believes that the combination of rapid, accurate adrenal (cortisol and endogenous ACTH) and thyroid (total T4, free T4, and TSH) test result data with advanced analysis should improve clinical care and hospital efficiency.

“We believe that the ability to quickly and thoroughly analyze patient test results with a tool that personalizes the analysis to your patient will significantly enhance patient care,” said Dr. Stephanie Morley, Chief Operations Officer and Vice President of Product Development. “As a clinician, confidence in your diagnosis is key to assisting the veterinary care team in making treatment recommendations faster, resulting in more positive outcomes for patients, and pet owners.”

Zomedica believes that access to clinically relevant data has the potential to improve the standard of care, pet owner experience, and patient care. Zomedica intends to seek potential partnerships within the animal health and technology sectors to develop integrated solutions to elevate veterinary medicine and enhance the capabilities of its digital platform.

Zomedica anticipates launching its digital platform in Q1 2020 upon its product launch.

About Zomedica
Based in Ann Arbor, Michigan, Zomedica (NYSE American: ZOM) (TSX-V: ZOM) is a veterinary diagnostic and pharmaceutical company creating products for companion animals (canine, feline and equine) by focusing on the unmet needs of clinical veterinarians. Zomedica’s product portfolio will include novel diagnostics and innovative therapeutics that emphasize patient health and practice health. With a team that includes clinical veterinary professionals, it is Zomedica’s mission to give veterinarians the opportunity to lower costs, increase productivity, and grow revenue while better serving the animals in their care. For more information, visit www.ZOMEDICA.com.

Zomedica Announces Completion of Initial Development of a Lymphoma Assay for its Canine Cancer Liquid Biopsy Platform

Source:  Zomedica Pharmaceuticals, Inc. 6/13/19

Zomedica Pharmaceuticals Corp. (NYSE American: ZOM) (TSX-V: ZOM), a veterinary diagnostic and pharmaceutical company, today announced that it has completed initial development work on a blood-borne lymphoma cancer assay intended for use with its canine cancer liquid biopsy platform.

According to the American Veterinary Medical Association, one in four dogs will develop cancer during their lifetime. Lymphomas represent approximately 10-25% of all cancers diagnosed in dogs.

The lymphoma assay, designated ZM-022, is designed to identify specific genetic abnormalities using fluorescence in situ hybridization (FISH). FISH tests are regularly used for cancers in human medicine, such as the HER2 breast cancer test. The assay is being developed for use on Zomedica’s liquid biopsy platform, which is expected to be available for sale in 2020.

As previously announced, Zomedica is also developing assays for the detection of hemangiosarcoma and osteosarcoma for use with its liquid biopsy platform, designated ZM-017. Lymphoma, osteosarcoma, and hemangiosarcoma are three of the top five most commonly diagnosed malignant canine cancers.

Zomedica expects that the out-of-pocket cost incurred by pet owners for these assays will be a fraction of the cost of current testing methods, which can be thousands of dollars depending on the presentation.

Lymphoma often presents with swollen lymph nodes, allowing for fine needle aspiration of the tumor for initial diagnosis. Zomedica’s biomarker study design included samples from B-cell and T-cell tumors as well as peripheral blood samples from lymphoma patients and healthy patients. Zomedica was able to identify these genetic abnormalities consistently to differentiate between cancerous and non-cancerous B-cells and T-cells on a peripheral blood draw. Additional prognostic tests involve the removal of a lymph node and can take at least a week or longer to obtain, delaying treatment and allowing for progression of this aggressive form of cancer.

Zomedica has submitted patent applications for its lymphoma assay.

“We are excited to add this important assay to the development work we are doing on our liquid biopsy platform,” said Dr. Stephanie Morley, Chief Operations Officer and Vice President of Product Development. “We expect that if we successfully complete the development of these assays, our liquid biopsy platform will offer veterinarians and their teams the opportunity to make better treatment decisions more quickly and at a lower cost compared to existing technologies, creating better outcomes for their patients and pet owners. The development of multiple assays for our liquid biopsy platform demonstrates the versatility of the platform.”

Zomedica anticipates beginning verification and branding efforts for its lymphoma assay by the fourth quarter of 2019 with validation to commence in 2020. Assuming successful completion of validation, Zomedica expects to commence commercialization of this platform and its initial assays in 2020.

About Zomedica
Based in Ann Arbor, Michigan, Zomedica (NYSE American: ZOM) (TSX-V: ZOM) is a veterinary diagnostic and pharmaceutical company creating products for companion animals (canine, feline and equine) by focusing on the unmet needs of clinical veterinarians. Zomedica’s product portfolio will include novel diagnostics and innovative therapeutics that emphasize patient health and practice health. With a team that includes clinical veterinary professionals, it is Zomedica’s mission to give veterinarians the opportunity to lower costs, increase productivity, and grow revenue while better serving the animals in their care. For more information, visit www.ZOMEDICA.com.

Zomedica Announces $7 Million Second Tranche Closing of Preferred Shares

Source:  Zomedica Pharmaceuticals, Inc. 6/10/19

Zomedica Pharmaceuticals Corp. (NYSE American: ZOM) (TSX-V: ZOM) (“Zomedica” or “Company”), a veterinary diagnostic and pharmaceutical company, today announced that it has completed its second tranche closing of Series 1 Preferred Shares with the issuance of 7 Series 1 Preferred Shares to an accredited investor under a private placement at a purchase price of $1,000,000 per Series 1 Preferred Share for a total purchase price of $7,000,000.  The Company previously issued 5 Series 1 Preferred Shares to the same subscriber at a purchase price of $5,000,000 (for further details, see the Company's press release dated May 10, 2019). 

Zomedica intends to use the net proceeds from this offering for the continued development of its diagnostic platforms and therapeutic candidates, including the payment of milestone payments under the Company’s existing license and collaboration agreements, and other general corporate and working capital purposes.

The Company is authorized to issue up to 20 Series 1 Preferred Shares.  The Company may conduct one or more additional closings of the offering for total aggregate proceeds of up to $20 million.  Each Series 1 Preferred Share has a stated value of $1,000,000. The Series 1 Preferred Shares do not have voting rights except to the extent required by applicable law and are not convertible into the Company’s common shares. Holders of the Series 1 Preferred Shares will not be entitled to dividends but, in lieu thereof, will receive annual payments (the “Net Sales Payments”) equal to nine percent of the net sales (as defined in the Series 1 Preferred Shares Terms and Conditions), if any, of the Company and its affiliates until such time as the holders have received total payments equal to nine times the aggregate stated value of the Series 1 Preferred Shares. The Company has the right to redeem the outstanding Series 1 Preferred Shares at any time at a redemption price equal to nine times the aggregate stated value of the Series 1 Preferred Shares outstanding less the aggregate amount of the Net Sales Payments paid (the “Redemption Amount”). In the event of a fundamental transaction (as defined in the Series 1 Preferred Shares Terms and Conditions) the holders of the Series 1 Preferred Shares will be entitled to receive consideration for their Series 1 Preferred Shares equal to a multiple of the stated value of the Series 1 Preferred Shares ranging from 5.0 to 9.0 depending on the timing of the fundamental transaction, subject to a cap equal to the Redemption Amount.

The description of the Series 1 Preferred Shares above is a summary only, it is not intended to be complete, and is qualified in its entirety by reference to the Articles of Amendment to the Company’s Article of Incorporation containing the Terms and Conditions of the Series 1 Preferred Shares, a copy of which has been filed under the Company's corporate profile on SEDAR and  has been filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, which has been filed with the Securities and Exchange Commission. The Series 1 Preferred Shares being sold in the offering have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and are being sold pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D promulgated thereunder. Such securities are therefore restricted in accordance with Rule 144 under the Securities Act.

This Press Release does not constitute an offer to sell or the solicitation of an offer to buy any security. The securities described herein have not been registered under the Securities Act or applicable state securities laws and may not be offered or sold in the United States or any state thereof absent registration under the Securities Act and applicable state securities laws or an applicable exemption from registration requirements.

About Zomedica
Based in Ann Arbor, Michigan, Zomedica (NYSE American: ZOM) (TSX-V: ZOM) is a veterinary diagnostic and pharmaceutical company creating products for companion animals (canine, feline and equine) by focusing on the unmet needs of clinical veterinarians. Zomedica’s product portfolio will include novel diagnostics and innovative therapeutics that emphasize patient health and practice health. With a team that includes clinical veterinary professionals, it is Zomedica’s mission to give veterinarians the opportunity to lower costs, increase productivity, and grow revenue while better serving the animals in their care. For more information, visit www.ZOMEDICA.com.

Zomedica Announces Achievement of Product Development Milestones on its TRUFORMA™ Point-of-Care Diagnostic Platform

Source:  Zomedia Pharmaceuticals, Inc. 5/21/19

Zomedica Pharmaceuticals Corp. (NYSE American: ZOM) (TSX-V: ZOM), a veterinary diagnostic and pharmaceutical company, today announced that TRUFORMA™, its point-of-care biosensor platform, recently achieved two important product development milestones.

The TRUFORMA™ platform, formerly designated ZM-024, is a table-top instrument that will use disposable assay cartridges to test a range of samples including whole blood, serum, and plasma. The platform uses differentiated Bulk Acoustic Wave (BAW) sensor technology to provide a non-optical and fluorescence-free detection system for use at the point-of-care.

The milestones achieved are beta finalization of the instrument design and the completion of feasibility testing of the TRUFORMA™ platform’s first assays. Completion of the beta design milestone allows a transition to commercial production for the instrument.

The TRUFORMA™ initial assay cartridge candidates include total thyroxine (total T4), free thyroxine (fT4), thyroid stimulating hormone (TSH), cortisol, and endogenous adrenocorticotropic hormone (ACTH) for canine and feline patients.

The standard of care for total T4, fT4, TSH, and cortisol is reference lab immunoassays generally run on expensive laboratory equipment. Utilizing the FDA Center for Veterinary Medicine recommendations for Bioanalytical Method Validation, Zomedica has demonstrated that the initial TRUFORMA™ assays attained acceptable ranges for precision and accuracy.

Feasibility results for the initial TRUFORMA™ assays achieved statistically significant correlation with corresponding standard of care reference lab tests. These results demonstrate these initial assays are satisfying Zomedica’s target product specification for correlation greater than 0.95 and for dynamic range, which depending on the assay, are as low as 9 pg/mL and greater than 500 ng/mL. Time to result during this feasibility testing averaged less than 15 minutes utilizing canine and feline serum samples.

“We believe these feasibility results demonstrate that we will be able to develop TRUFORMA™ assays that will meet or exceed the performance capabilities of existing reference laboratory tests, which may result in equivalent or better diagnostic sensitivity and specificity,” Stephanie Morley, DVM, Chief Operating Officer and Vice President of Product Development, Zomedica. “We are excited by these early results and look forward to continuing our development of the TRUFORMA™ platform to enable the testing of these assays, of which fT4, feline TSH and ACTH are novel to the point-of-care.”

“Based on the results obtained in our feasibility testing, we believe TRUFORMA™ assays have the potential to help clinicians make informed decisions about thyroid and adrenal issues during a patient’s visit to the clinic, which we believe will result in earlier treatment and enhanced treatment compliance,” said Bruk Herbst, Chief Commercial Officer, Zomedica.

Assuming the successful completion of the remaining development milestones, Zomedica intends to commence marketing the TRUFORMA™ platform with the initial assays in the first quarter of 2020. Zomedica expects to develop additional assays for the TRUFORMA™ platform, including a non-infectious gastrointestinal panel, following the completion of the initial assays.

TRUFORMA™ is an investigational device, not currently available for sale and limited to investigational use only.

About Zomedica
Based in Ann Arbor, Michigan, Zomedica (NYSE American: ZOM) (TSX-V: ZOM) is a veterinary diagnostic and pharmaceutical company creating products for companion animals (canine, feline and equine) by focusing on the unmet needs of clinical veterinarians. Zomedica’s product portfolio will include novel diagnostics and innovative therapeutics that emphasize patient health and practice health. With a team that includes clinical veterinary professionals, it is Zomedica’s mission to give veterinarians the opportunity to lower costs, increase productivity, and grow revenue while better serving the animals in their care. For more information, visit www.ZOMEDICA.com.

Zomedica Announces First Quarter 2019 Financial Results

Source:  Zomedica Pharmaceuticals, Inc. 5/10/19

Zomedica Pharmaceuticals Corp. (NYSE American:ZOM) (TSX-V:ZOM) (“Zomedica” or “Company”), a veterinary diagnostic and pharmaceutical company, today reported consolidated financial results for the first quarter ended March 31, 2019. Amounts, unless specified otherwise, are expressed in U.S. dollars and presented under accounting principles generally accepted in the United States of America (“U.S. GAAP”). 

“During the quarter, we continued to advance the development of our unique product pipeline of novel diagnostics and innovative therapeutics,” said Gerald Solensky Jr., Chairman and CEO of Zomedica.

Corporate Highlights
  • In January 2019, Zomedica announced the achievement of the product development milestone for ZM-017, our canine cancer liquid biopsy diagnostic platform, by Celsee, Inc. Celsee elected to receive its milestone payment in equity resulting in the issuance to Celsee of an aggregate of 657,894 common shares at an ascribed price of $1.52 (C$2.00).
     
  • In January 2019, the Company announced the appointment of Bonnie Bragdon, DVM, MS, as Vice President of Veterinary Affairs. Dr. Bragdon joins Zomedica with 20 years of combined animal health leadership experience from companies including Merck Animal Health, BonVet Animal Health and Abbott Animal Health.
     
  • In March 2019, Zomedica announced the initiation of enrollment in its pilot efficacy study for ZM-006, a transdermal methimazole formulation for the treatment of chronic hyperthyroidism in cats.  The study is being conducted to evaluate the Company’s formulation and provide data for a future FDA Center for Veterinary Medicine approved pivotal trial.
     
  • In March 2019, Zomedica closed an underwritten public offering of 6,521,740 common shares, at a price to the public of $0.46 per share.  The Company received gross proceeds of $3,000,000 from the offering. H.C. Wainwright acted as sole book-running manager for the offering.
     
  • In March 2019, Qorvo Biotechnologies, LLC achieved two milestones as part of our development and supply agreement of ZM-024, a point-of-care biosensor platform.
Summary First Quarter 2019 Results
Zomedica recorded net loss and comprehensive loss for the three months ended March 31, 2019 of $11,676,908 or $0.12 per share compared to a loss of $2,171,328 or $0.02 per share for the three months ended March 31, 2018.

Research and development expense for the three months ended March 31, 2019 was $7,531,375 compared to $600,341 for the three months ended March 31, 2018, an increase of $6,931,034 or 1,155%.  The increase was primarily due to two milestone payments of $3,000,000 and $2,000,000, accrued pursuant to the achievement of the milestones as part of our development of ZM-024 under our development and supply agreement with Qorvo Biotechnologies, LLC. Milestone payments of $736,841 accrued and paid in common stock pursuant the achievement of milestones as part of our development of ZM-017 under our license and supply agreement with Celsee, Inc., and expensed $150,000 in additional licensing fees from deposits pursuant to the achievement of milestone activities under our license and supply agreement with Celsee, Inc.  During the three months ended March 31, 2018 we expensed $25,000 in licensing fees from deposits pursuant to the achievement of milestone activities under our license and supply agreement with Celsee, Inc.  After adjusting for the licensing fees, research and development expenses increased $1,069,193. This increase is a result of a higher level of third-party expenses relating to the development of our product candidate developments and the addition of full-time employees.  As a result, period over period, contracted outsourced activities increased $985,324, salaries increased $64,489, and consulting expenses increased $22,670. The increase in contracted outsourced activities was largely due to the significant development activities of ZM-024, as evidenced by the achievement of the two milestones previously discussed. We expect that our R&D expenditures in 2019 will be significantly higher than in 2018, due to work related to verification and validation of  ZM-024, ZM-020 and ZM-017, the initiation of pilot and pivotal studies related to our four INADs, as well as  additional diagnostic developments and technologies.

General and administrative expense for the three months ended March 31, 2019 was $3,231,261, compared to $1,160,171 for the three months ended March 31, 2018, an increase of $2,071,090 or 179%. The increase was primarily due to the increase in salaries, bonus and benefits of $2,286,214, which included share-based compensation expense of $2,341,104 as a result of the granting of options to purchase an aggregate of 5,995,000 common shares in January 2019, all of which vested upon the date of grant.  After adjusting for the share-based compensation expense, general and administrative expense decreased $270,014. This decrease was due to the reclassification of rent expense to amortization of right-of-use asset of $127,345, a reduction in travel and accommodation for $64,140 and the net decrease in salaries, bonus and benefits of $54,890. We expect that general and administrative expense will increase in 2019 and future periods as we increase our level of activity.

Professional fees for the three months ended March 31, 2019 were $739,394 compared to $371,947 for the three months ended March 31, 2018, an increase of $367,447 or 99%. The increase was primarily due to increased expenses related to the filing of our S-3 resale registration statement and our S-8 registration statement.

Liquidity and Outstanding Share Capital
Zomedica had cash and cash equivalents of $2,296,731 as of March 31, 2019, compared to $1,940,265 as of December 31, 2018. The increase in cash during the three months ended March 31, 2019 is mainly a result of the cash flows from financing activities, partially offset by cashflows used in operating and investing activities as discussed below.

Net cash used in operating activities for the three months ended March 31, 2019 was $2,581,275, compared to $1,707,794 for the three months ended March 31, 2018, an increase of $873,481 or 51%. The largest uses of cash resulted primarily from an increase in salaries, bonus and benefits as we had 27 employees at March 31, 2019 compared to 21 employees at March 31, 2018. Other uses of cash include costs associated with regulatory costs, insurance and professional fees, and reporting costs associated with being subject to U.S. securities law reporting obligations.

Net cash from financing activities for the three months ended March 31, 2019 was $3,006,828, compared to net cash from financing activities of $1,407,786 for the three months ended March 31, 2018, an increase of $1,599,042 or 114%.  Cash from financing activities resulted primarily from the $3,000,000 public offering of our common shares, and proceeds of $600,000 from the exercise of stock options partially offset by stock issuance costs of $593,172.

Net cash used in investing activities for the three months ended March 31, 2019 was $69,087, compared to $13,219 for the three months ended March 31, 2018, an increase of $55,868 or 423%.  The increase resulted primarily from additional leasehold improvements in Ann Arbor.
  
As of March 31, 2019, Zomedica had an unlimited number of authorized common shares with 108,038,398 common shares issued and outstanding.

As of May 10, 2019, Zomedica had 108,038,398 common shares issued and outstanding.

As of March 31, 2019 and December 31, 2018, Zomedica had shareholders’ (deficiency) equity of ($1,879,872) and $3,657,000, respectively.

For complete financial results, please see Zomedica’s filings on EDGAR and SEDAR or visit the Zomedica website at www.ZOMEDICA.com.

About Zomedica
Based in Ann Arbor, Michigan, Zomedica (NYSE American:ZOM) (TSX-V:ZOM) is a veterinary diagnostic and pharmaceutical and company creating products for companion animals (canine, feline and equine) by focusing on the unmet needs of clinical veterinarians. Zomedica’s product portfolio includes novel diagnostics and innovative therapeutics that emphasize patient health and practice health. With a team that includes clinical veterinary professionals, it is Zomedica’s mission to give veterinarians the opportunity to lower costs, increase productivity, and grow revenue while better serving the animals in their care. For more information, visit www.ZOMEDICA.com.


Zomedica Announces Private Placement of Preferred Shares


Source:  Zomedica Pharmaceuticals, Inc. 5/10/19

Zomedica Pharmaceuticals Corp. (NYSE American: ZOM) (TSX-V: ZOM) (“Zomedica” or “Company”), a veterinary diagnostic and pharmaceutical company, today announced that it has entered into subscription agreements to sell $12,000,000 of its newly created Series 1 Preferred Shares to an accredited investor under a private placement at a purchase price of $1,000,000 per Series 1 Preferred Share. $5,000,000 of the purchase price was paid on May 9, 2019 and 5 Series 1 Preferred Shares have been issued to the subscriber. The remaining $7,000,000 is expected to be paid on or prior to June 7, 2019, at which time a further 7 Series 1 Preferred Shares will be issuable to the subscriber. The Company may conduct one or more additional closings of the offering at any time on or prior to June 7, 2019 for total aggregate proceeds of up to $20,000,000.

Zomedica intends to use the net proceeds from this offering for the continued development of its diagnostic platforms and therapeutic candidates, including the payment of milestone payments under the Company’s existing license and collaboration agreements, and other general corporate and working capital purposes

The Company is authorized to issue up to 20 Series 1 Preferred Shares. Each Series 1 Preferred Share has a stated value of $1,000,000. The Series 1 Preferred Shares do not have voting rights except to the extent required by applicable law and are not convertible into the Company’s common shares. Holders of the Series 1 Preferred Shares will not be entitled to dividends but, in lieu thereof, will receive annual payments (the “Net Sales Payments”) equal to nine percent of the net sales (as defined in the Series 1 Preferred Shares Terms and Conditions), if any, of the Company and its affiliates until such time as the holders have received total payments equal to nine times the aggregate stated value of the Series 1 Preferred Shares. The Company has the right to redeem the outstanding Series 1 Preferred Shares at any time at a redemption price equal to nine times the aggregate stated value of the Series 1 Preferred Shares outstanding less the aggregate amount of the Net Sales Payments paid (the “Redemption Amount”). In the event of a fundamental transaction (as defined in the Series 1 Preferred Shares Terms and Conditions) the holders of the Series 1 Preferred Shares will be entitled to receive consideration for their Series 1 Preferred Shares equal to a multiple of the stated value of the Series 1 Preferred Shares ranging from 5.0 to 9.0 depending on the timing of the fundamental transaction, subject to a cap equal to the Redemption Amount.

The description of the Series 1 Preferred Shares above is a summary only, it is not intended to be complete, and is qualified in its entirety by reference to the Articles of Amendment to the Company’s Article of Incorporation containing the Terms and Conditions of the Series 1 Preferred Shares, a copy of which will be filed under the Company's corporate profile on SEDAR and will be filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, which is to be filed with the Securities and Exchange Commission. The Series 1 Preferred Shares being sold in the offering have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and are being sold pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D promulgated thereunder. Such securities are therefore restricted in accordance with Rule 144 under the Securities Act.

This Press Release does not constitute an offer to sell or the solicitation of an offer to buy any security. The securities described herein have not been registered under the Securities Act or applicable state securities laws and may not be offered or solid in the United States or any state thereof absent registration under the Securities Act and applicable state securities laws or an applicable exemption from registration requirements.

About Zomedica
Based in Ann Arbor, Michigan, Zomedica (NYSE American: ZOM) (TSX-V: ZOM) is a veterinary diagnostic and pharmaceutical company creating products for companion animals (canine, feline and equine) by focusing on the unmet needs of clinical veterinarians. Zomedica’s product portfolio will include novel diagnostics and innovative therapeutics that emphasize patient health and practice health. With a team that includes clinical veterinary professionals, it is Zomedica’s mission to give veterinarians the opportunity to lower costs, increase productivity, and grow revenue while better serving the animals in their care. For more information, visit www.ZOMEDICA.com.