VOQP VioQuest Pharmaceuticals Inc (CE)

VioQuest Pharmaceuticals (OTCBB: VOQP) today reported its financial results for the first quarter ended March 31, 2008. For the first quarter of 2008, operating expenses decreased to $1.7 million as compared to $2.3 million for the same period of 2007. The Company�s net loss was $3.1 million for the first quarter of 2008, or $0.63 per basic and diluted share, versus a net loss of $2.5 million, or $0.55 per basic and diluted share, for the same period of 2007. Recent corporate highlights Presentation of preclinical abstracts involving the Company�s novel AKT inhibitor VQD-002 (triciribine phosphate monohydrate, or TCN-P) at the Annual Meeting of the American Association for Cancer Research (AACR) held April 12-16, 2008 in San Diego. Completion of a private placement raising an aggregate of approximately $3 million in gross proceeds through the sale of units consisting of shares of the Company�s Series A Convertible Preferred Stock and warrants to purchase shares of its Common Stock, pursuant to a series of subscription agreements with selected accredited investors. Appointment of Vernon L. Alvarez, Ph.D. as Vice President, Research & Development, bringing to VioQuest Pharmaceuticals over 18 years of biotechnology and R&D experience in signal transduction, antibodies, peptides, immunotherapeutics, radiopharmaceuticals, and novel drug delivery technologies. Issuance of U.S. Patent No. 7,368,456 for the Company�s investigational product candidate Xyfid� (1% topical uracil) entitled �Methods, compositions, and kits for organ protection during systemic anticancer therapy,� which includes pharmaceutical compositions, methods of treatment, and combination kits. �We began 2008 with an essential staff restructuring and raising capital through the successful closing of our private placement. These events together with our progress in research and product development have provided us with a solid platform to achieve several key regulatory and development milestones in the months ahead,'' stated Michael D. Becker, President and Chief Executive Officer of VioQuest Pharmaceuticals. �As a result, we are also well positioned to consider opportunities for partnership or collaboration to support the commercialization strategy for our lead supportive care oncology product candidate, Xyfid, and to pursue a range of business development opportunities to advance VQD-002 and the other promising compounds in our pipeline.� Financial results General and administrative expenses For the first quarter of 2008, general and administrative expenses decreased to $690,339 compared to $913,651 for the same period in 2007. The decrease in G&A expenses was primarily attributable to headcount reductions. Research and development expenses For the first quarter of 2008, research and development expenses decreased to $979,094 compared to $1.4 million for the same period in 2007. The decrease in R&D expenses was primarily attributable to $300,000 in licensing fees incurred during the first quarter of 2007 to acquire the worldwide license to Xyfid. Interest expense, net Interest expense, net of interest income, for the first quarter of 2008 was $1.4 million compared to interest income, net of interest expense, for the same period of 2007 of $25,684. Interest expense for the first quarter of 2008 included expenses recorded upon the extinguishment of senior convertible promissory notes of $1.4 million and dividends payable on mandatorily redeemable convertible preferred stock of $14,947, which was offset by interest income of $2,923. Cash and cash equivalents During March 2008, the Company completed an initial closing of a private placement raising $765,000 in gross proceeds through the sale of units consisting of shares of its Series A Convertible Preferred Stock and warrants to purchase shares of its Common Stock, pursuant to a series of subscription agreements with selected accredited investors. As of March 31, 2008, VioQuest Pharmaceuticals� cash and cash equivalents were $305,561 compared to $694,556 as of December 31, 2007. In April 2008, the Company completed a second closing of the private placement, raising approximately $2.2 million in additional gross proceeds. About VioQuest Pharmaceuticals VioQuest Pharmaceuticals is a New Jersey-based biotechnology company dedicated to becoming a recognized leader in the successful development of novel drug therapies targeting both the molecular basis of cancer and side effects of treatment. VioQuest�s oncology portfolio includes: Xyfid� (1% uracil topical), for the treatment and prevention of Hand-Foot Syndrome, a common side effect from certain chemotherapy treatments, and to treat dry skin conditions and manage the burning and itching associated with various dermatoses; VQD-002 (triciribine phosphate monohydrate), a targeted inhibitor of Akt activation; and Lenocta� (sodium stibogluconate), an inhibitor of certain protein tyrosine phosphatases such as SHP-1, SHP-2, and PTP1B. Further information about VioQuest can be found at www.vioquestpharm.com. This press release contains forward-looking statements that involve risks and uncertainties that could cause VioQuest's actual results and experiences to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These forward-looking statements concern the timing, progress and results of the clinical development, regulatory processes, potential clinical trial initiations of VioQuest�s product candidates, as well as our ability to complete strategic transactions. These statements are often, but not always, made through the use of words or phrases such as anticipates, expects, plans, believes, intends, and similar words or phrases. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties, which could cause actual outcomes and results to differ materially from these statements. These statements are subject to various risks and uncertainties and include VioQuest�s immediate need for additional capital to cover its current obligations and future operating expenses and fund its clinical development programs, the possibility that the results of clinical trials will not support VioQuest's claims, the possibility that VioQuest's development efforts relating to its product candidates will not be successful, the inability to obtain regulatory approval of VioQuest's product candidates, VioQuest's reliance on third-party researchers to develop its product candidates, its lack of experience in developing and commercializing pharmaceutical products, and the possibility that its licenses to develop and commercialize its product candidates may be terminated. Additional risks are described in VioQuest's Annual Report on Form 10-KSB for the year ended December 31, 2007. VioQuest assumes no obligation and does not intend to update these forward-looking statements, except as required by law. VIOQUEST PHARMACEUTICALS CONDENSED STATEMENTS OF OPERATIONS (in thousands - except per share data) (Unaudited) � � Three Months Ended March 31, 2008 � 2007 Operating expenses: Research and development 979 1,369 General and administrative 690 914 Total operating expenses 1,669 2,282 � Loss from operations (1,669 ) (2,282 ) � Interest income (expense), net (1,412 ) 26 Loss from discontinued operations - (261 ) � Net loss $ (3,081 ) $ (2,518 ) � Basic and diluted net loss per share of common stock $ (0.63 ) $ (0.55 ) � Basic and diluted weighted average number of shares of common stock outstanding 4,905 4,606 � � VIOQUEST PHARMACEUTICALS CONDENSED BALANCE SHEETS (in thousands) � March 31, December 31, 2008 2007 ASSETS � Cash and cash equivalents $ 306 $ 695 Prepaid expenses 287 189 Deferred financing costs - 358 Other assets 105 116 Total assets $ 698 $ 1,358 � LIABILITIES, MANDATORILY REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIENCY � � Accounts payable $ 2,636 $ 1,874 Accrued liabilities 816 1,039 Convertible notes - 2,930 Total liabilities $ 3,452 $ 5,843 � Mandatorily redeemable convertible preferred stock 3,931 - � Stockholders' deficiency (6,685 ) (4,484 ) � Total liabilities, mandatorily redeemable convertible preferred stock and stockholders' deficiency $ 698 $ 1,358