Tikcro Technologies reports net loss of $1.8M for fourth-quarter 2009

Apr 17 2010

Tikcro Technologies Ltd. (OTC BB: TIKRF) today reported results for the fourth quarter and year ended December 31, 2009.

Net loss for the fourth quarter was $1.8 million or $(0.22) per diluted share. Results for the fourth quarter included financial expense of $1.7 million primarily from to the valuation of Tikcro's holdings in BioCancell Therapeutics, Inc., a clinical-stage biopharmaceutical company operating in the area of cancer treatment. Excluding this non cash financial expense, net loss for the fourth quarter was $95,000 or (0.01) per diluted share. Net income for the year ended December 31, 2009 was $2.9 million or $0.34 per diluted share. Results for the year ended December 31, 2009 included financial expense of $3.2 million primarily from to the valuation of Tikcro's holdings in BioCancell Therapeutics, Inc. Excluding this non cash financial income, net loss for the full year was $303,000 or (0.04) per diluted share.

Tikcro holds 30% of Biocancell, taking into account the conversion of a convertible note and exercise of warrants, and 22% on a fully diluted basis. Shares of Biocancell are traded on the Tel Aviv Stock Exchange (TASE). The valuation of the holding in Biocancell is influenced, among other factors, by the share price of Biocancell on TASE.

As of December 31, 2009, the Company had net cash and marketable securities totaling $7.4 million.

During the March 2010, BioCancell concluded an offering to Israeli investors in the amount of approximately $3.3 million. This amount will support the progress in three on-going clinical trials: Phase I/IIa trial for the treatment of pancreatic cancer, phase IIb clinical trial for the treatment of superficial bladder carcinoma cancer and a phase I/IIa clinical trial for the treatment of ovarian cancer. The leading drug, BC-819, used in these clinical trials is a double stranded DNA plasmid construct that incorporates the gene for diphtheria toxin (DTA) under the regulation of the promoter sequence for H19 gene. The net result of the mechanism of the drug is a selective tumor cell destruction.