BASKING RIDGE, N.J., May 19, 2006 (PRIMEZONE) -- VioQuest Pharmaceuticals (OTCBB:VQPH) a biopharmaceutical company focused on developing and eventually commercializing targeted therapeutics, reported a net loss of $1.9 million, or $0.05 per share for the quarter ended March 31, 2006, compared to a net loss of $1.3 million, or $0.07 per share in 2005. The net loss increase was attributed to spending on its clinical development programs, enhancements to its senior management team, in addition to other operational expenditures. Revenues remained consistent from the first quarter 2005, while gross margins increased over 30% as a result of the Company achieving manufacturing efficiencies in the production of its proprietary technologies. The Company believes its Chiral Quest subsidiary will achieve cash flow positive results by the end of the year. During the first quarter of 2006 VioQuest Pharmaceuticals made significant progress on its business strategy and achieved several important milestones. The Company's quarterly accomplishments include:
-- VioQuest appointed industry veteran, Pamela Harris, M.D. as
Chief Medical Officer. Dr. Harris brings to the Company
extensive pharmaceutical industry knowledge and experience in
clinical development and the regulatory approval process,
particularly in the area of oncology.
-- VioQuest's Investigational New Drug application was accepted for
VQD-002, triciribine-phosphate (TCN-P) by the U.S. Food and Drug
Administration. VQD-002 is a tricyclic nucleoside that targets
intracellular AKT, by inhibiting its phosphorylation and,
therefore, its ability to activate important cancer pathways.
-- The Company appointed two members to its Scientific Advisory
Board (SAB). Kenneth F. King, Ph.D., and Webster K. Cavenee,
Ph.D., bring a combined total of over 50 years of drug
development expertise to VioQuest.
"Our drug development achievements and financial results were significant accomplishments during the first quarter," commented Daniel Greenleaf, President and CEO of VioQuest. "We achieved many important milestones on the road to accelerating our two targeted anti-cancer compounds further along through their development process."
About VioQuest Pharmaceuticals, Inc.
VioQuest Pharmaceuticals, Inc. acquires, develops and commercializes targeted late preclinical and early clinical stage therapies with unique mechanisms of action for oncology, viral and autoimmune disorders. A leader in personalized therapeutics, VioQuest has two targeted therapeutics in clinical trials: VQD-001, an inhibitor of specific protein tyrosine phosphatases, as well as an immune potentiator, has shown compelling preclinical activity in both renal and melanoma cancers, and VQD-002, which has been shown to inhibit the phosphorylation of Akt which is overexpressed in many ovarian, colorectal, breast, pancreatic cancers and in leukemia.
VioQuest's subsidiary Chiral Quest, a pioneer in asymmetric chemocatalysis and custom synthesis, offers its proprietary technology products and services to well-known pharmaceutical and fine chemical companies worldwide to improve their production efficiencies and, in some instances, to increase the overall safety and efficacy of the underlying drug. For more information please visit www.vioquestpharm.com.
Forward-Looking Statements: 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 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. Among other things, there can be no assurances that any of VioQuest's research programs and compounds will be successfully commercialized. Other risks and uncertainties that affect forward-looking statements contained in this press release include the possibility that the market for the sale of certain products may not develop as expected; that development of our product candidates may not proceed as planned, the possibility of being unable to obtain regulatory approval of VioQuest's product candidates, the risk that the results of clinical trials may not support VioQuest's claims, and risks related to VioQuest's ability to protect its intellectual property and its reliance on third parties to develop its product candidates. Additional risks are described in VioQuest's Annual Report on Form 10-KSB for the year ended December 31, 2005. VioQuest assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
VIOQUEST PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2006 AND 2005
(UNAUDITED)
For the Three For the Three
Months Ended Months Ended
March 31, 2006 March 31, 2005
------------ ------------
REVENUE $ 598,876 $ 597,768
COST OF GOODS SOLD (Excluding
Depreciation and Amortization) 318,149 396,760
------------ ------------
GROSS PROFIT 280,727 201,008
------------ ------------
OPERATING EXPENSES
Management and consulting fees 52,088 117,348
Research and development 595,037 524,013
Selling, general and administrative 1,464,333 810,892
Depreciation and amortization 78,184 53,664
------------ ------------
Total Operating Expenses 2,189,642 1,505,917
------------ ------------
LOSS FROM OPERATIONS (1,908,915) 1,304,909)
INTEREST INCOME, NET 47,168 6,486
------------ ------------
NET LOSS $ (1,861,747) $ 1,298,423)
============ ============
NET LOSS PER COMMON SHARE --
BASIC AND DILUTED $ (.05) $ (.07)
============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING --
BASIC AND DILUTED 38,165,124 17,827,924
============ ============
VIOQUEST PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2006 (UNAUDITED) AND DECEMBER 31, 2005
March 31,
2006 December 31,
(Unaudited) 2005
------------ ------------
ASSETS
------
CURRENT ASSETS
Cash and cash equivalents $ 3,281,205 $ 6,021,399
Accounts receivable 553,879 227,695
Inventory 652,886 625,158
Other current assets 120,606 49,184
------------ ------------
Total Current Assets 4,608,576 6,923,436
PROPERTY AND EQUIPMENT, NET 699,066 757,151
SECURITY DEPOSITS 69,976 69,819
INTELLECTUAL PROPERTY RIGHTS, NET 623,215 628,897
OTHER ASSETS 37,075 --
------------ ------------
TOTAL ASSETS $ 6,037,908 $ 8,379,303
------------ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Accounts payable $ 698,823 $ 1,135,681
Accrued compensation 157,020 480,000
Accrued expenses 108,420 119,990
Note payable -- Paramount
BioCapital 264,623 264,623
Deferred revenue 51,000 40,000
------------ ------------
TOTAL LIABILITIES 1,279,886 2,040,294
----------------- ------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock; $0.001 par value:
10,000,000 shares authorized,
0 shares issued and outstanding at
March 31, 2006 and December 31,
2005 -- --
Common stock; $0.001 par value:
100,000,000 shares authorized at
March 31, 2006 and December 31,
2005, 46,729,519 shares issued
and outstanding at March 31, 2006
and December 31, 2005 46,729 46,729
Additional paid-in capital 26,842,432 26,561,672
Accumulated deficit (22,131,139) (20,269,392)
------------ ------------
Total Stockholders' Equity 4,758,022 6,339,009
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 6,037,908 $ 8,379,303
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