Antisense reports reduced loss, good cash reserves

Antisense Therapeutics (ASX: ANP) has ended the financial year in great shape, as it plans to move forward on Phase IIa clinical trials following the completion of Phase I safety studies.

The company reported a reduced loss after tax of AUD$4.6 million compared with last year's loss of $6.1 million, saying that R&D Start Grant payments of nearly $700,000 and tax concessions awarded through the R&D tax concession contributed toward the improved figure. Revenues of $1.3 million, a 199 per cent improvement over last year, were recorded.

"Obviously we're very pleased with the results -- we're in a very healthy cash position and are on track to achieve our goals," said CEO Mark Diamond.

Over the course of the year Antisense raised $10.4 million in private placements to sophisticated and institutional investors and through a share placement plan to existing shareholders, giving it a healthy bank balance of $13.2 million at the end of August.

"We've got sufficient cash reserves to fund us for at least 12 months, and move our compounds aggressively into patient trials," Diamond said.

With a successful Phase I clinical trial for multiple sclerosis therapeutic ATL1102 behind it, the company has turned its attentions to a Phase IIa study, which is expected to commence by the end of the year. The company has not yet released details of the study design , but the trial is likely to take place in Europe.

Diamond said the company is also waiting to see whether Biogen Idec/Elan's multiple sclerosis drug Antegren, which targets the same molecule -- VLA-4 -- as ATL1102, is approved by the FDA.

The company's topical psoriasis formulation, based on antisense compound ATL1101, is also moving forward, and a clinical proof of concept study is expected to commence by the end of the year, once preclinical toxicology studies have been completed.

A third antisense compound against the growth hormone receptor with applications in growth and sight disorders is also moving into preclinical development, and Antisense is evaluating a number of additional projects for potential.

Key events for the 2003-2004 financial year included:

• Successful completion of the Phase I human clinical trial for ATL1102 for multiple sclerosis;
• Announced plans in July 2003 to undertake a 'proof-of concept' study of ATL1101 in patients with psoriasis. Since that time the manufacture of injectable and cream formulations of ATL1101 has been completed and the pre-clinical animal toxicology studies to support this study have commenced;
• successful testing in animals of ATL1103, a new antisense compound designed to block Growth Hormone receptor (GHr) expression, confirmed its potential as a treatment for growth and sight disorders;
• successfully raised $10.4 million in a private placement of shares to Australian institutions and professional investors and through the issue of shares to eligible shareholders pursuant to the company's Share Purchase Plan;
• opened laboratory in Murdoch Children's Research Institute.