Pivotal Therapeutics reports reduced revenue in first quarter 2014

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May 31 2014

Pivotal Therapeutics Inc. (OTCQX:PVTTF) (CSE:PVO), ("Pivotal" or the "Company"), a specialty pharmaceutical company with a focus on Omega-3 therapies for cardiovascular disease (CVD) and overall health, announced its operational highlights and financial results for the three months ended March 31, 2014. All dollar amounts referenced herein are in Canadian dollars unless otherwise stated.

Financial Results

For the three months ended March 31, 2014, the Company reported a loss of $1,613,667, or $0.02 per common share. This included $508,952 in non-cash expenses related to the awarding of stock options in the period. In last year's first quarter, the loss was $783,436, or $0.01 per common share.

The Company ended the 2014 first quarter in a significantly improved financial position. At March 31, 2014, Pivotal's cash totaled $4,617,305 compared with $487,199 at December 31, 2013.

"Going into 2014, we mapped out an aggressive agenda which included the expansion of our sales, marketing, reimbursement support and R&D activities to help increase our commercial footprint and reach a much larger doctor and patient population," commented Mr. Eugene Bortoluzzi, Pivotal's CEO and CFO. "However, until late in the first quarter, a lack of available financial resources delayed our ability to execute those plans. While still somewhat constrained in that respect, we are now in a position to start implementing our growth strategy. We look forward to updating our stakeholders as we progress throughout the rest of the year."

The audited consolidated financial statements, accompanying notes thereto and Management's Discussion and Analysis for the three months ended March 31, 2014, will be accessible on SEDAR www.sedar.com, CSE www.cnsx.ca under the symbol "PVO" and OTCQX www.otcqx.com under the symbol "PVTTF".

Operational Highlights Since December 2013:

January 29, 2014 - The Company announced a Notice of Allowance for the patent entitled "Formulations Comprising Omega-3 Fatty Acids and Anti-Obesity Agent for the Reduction of Body Weight in Cardiovascular Disease Patients (CVD) and Diabetics";
March 4, 2014 - The Company closed the debt financing and receives over CDN $7.7 million to further Vascazen^® commercialization;
March 14, 2014 and April 8, 2014 - The Company awarded stock options that were granted previously to certain of its directors, officers, employees and consultants in recognition of their contributions made in 2012 and 2013 and were awaiting the conclusion of the aforementioned debt financing;
April 23, 2014 – The Company announces the resignation of two directors, Dr. John P. Nicholson Jr. and Mr. James Connolly, both nominees of Crossover Healthcare Fund, LLC.;
May 1 and May 6 2014 – the Company announced the presentation of two posters at the American Heart Association's Arteriosclerosis, Thrombosis and Vascular Biology (ATVB) 2014 Scientific Sessions in Toronto, Ontario, Canada, May 1-3, 2014;
May 7, 2014 – the Company announced the issuance of U.S. Patent 8,715,648 for its Unique 6:1 EPA:DHA formulation;
May 13, 2014 – the Company engaged Brandkarma LLC., an award winning, US-based, healthcare marketing and brand specialist with global expertise to support the Company's commercialization strategy for Vascazen^®;
May 14, 2014 – the Company announced changes to its Board designed to increase its independence and enhance Pivotal's corporate governance at this stage of the Company's development.