(TheNewswire)
Winnipeg – TheNewswire- May 30, 2024. Cytophage Technologies Ltd.( TSXV:CYTO ) (“ Cytophage ” or the “Company”), the only publicly traded phage companythat is focused on bacteriophage solutions for both animal health andhuman health, today announced that i t has filed its financial results for thefirst quarter (Q1) ended March 3 1 , 2024. The financial statements and theaccompanying Management Discussion andAnalysis Report are available under the Company’s profile at sedarplus.com . This is the first reporting of financial results since thecompletion of the reverse takeover transaction (the “RTO”) ofCuspis Capital III Ltd. (“Cuspis”) by the Company in February( see press release on February2 nd , 2024 ).
Q1 Business Highlights
-
Cytophage, the first phage company to go public inCanada, completed its reverse takeover of Cuspis and began trading onTSXV as of February 9, 2024.
-
Cytophage provided bacteriophage for the first phagetherapy in Canada for a prosthetic joint infection.
-
Cytophage held meetings with several large-scale,integrated poultry producers in Asia. Preliminary evaluation work onbacteria and corresponding phages is underway as prospective terms fora commercial collaboration agreement are being explored.
-
Construction continued on Cytophage’s new 20,000 sqft RD and production facility that will include state-of-the-art labsand GMP manufacturing. This new global headquarters for the Company isset to open in Q2 .
-
Cytophage strengthened its board of directors through the additionof two experienced executives: Michael Cochrane, who has a strongbackground in capital markets, and John Snisarenko, an experienced andsuccessful pharmaceutical/biotech commercialization executive. Cytophage has contracted former pharmaexecutive Dr. Ashley Wozniak, Founding Partner of Fosera Consulting,to develop funding proposals for phage projects focused on humanhealth and to assist in assessing product potential. Dr. Wozniak hassignificant experience in securing non-dilutive funding throughout hercareer ( over $500 million ), as well as in leading new product planning, late-stageproduct development, and product launches for commercial and medicalcountermeasure products.
Cytophage CEO Dr. Steven Theriault commented: “Q1 wasa busy period for Cytophage with lots of exciting developments withinthe commercialization and financial portfolios. This momentum hascarried into the second quarter where we continue to pursue commercialopportunities in the animal health sector, expand on our human healthefforts, and continue to engage with the investment community inCanada. ”
Animal Health Update
AviPhage
Cytophage’s current commercialization efforts inanimal health are primarily focused on Asia, a region with a highdemand for antibiotic alternatives and precedents in phage regulation,adoption, and awareness. Cytophage held targeted meetings in Marchwith some of the largest poultry producers and integrators in Asia whocollectively produce approximately 1.5 billion broiler chickensannually. Bacterial samples are being analyzed and assessed againstthe Company’s phages while, concurrently, prospective terms for acommercial collaboration agreement are being developed. Cytophageanticipates conducting large-scale commercial trials in this region in2024.
In Bangladesh, Cytophage continues to collaborate withits distribution partner. Cytophage has developed an innovative newproduct form: a lyophilized tablet designed to replace the traditionalliquid form commonly used in phage therapy. This lyophilized(freeze-dried/stabilized) product represents a significanttechnological breakthrough, offering increased flexibility, stability,and application versatility. Cytophage anticipates leveraging thisinnovation globally across all existing and pending product lines.This advancement allows for the delivery and storage of bacteriophagesby extending the shelf life of the product. Cytophage believes it iscurrently the only phage company worldwide capable of delivering alyophilized phage product at scale, without significantly increasingcosts for consumers.
OvaPhage
Cytophage has been evaluating its egg phage product,OvaPhage, for compatibility with current delivery systems within eggproducing barns. OvaPhage is a non-toxic, environmentally friendlydisinfectant product for egg production. Field trials are expected tobe completed by the end of 2024.
Summary
It is important to note that even among the samebacterial species (e.g. E.coli ), bacterial populations vary from region toregion, which can limit the efficacy/longevity of phage productsdeveloped for/from foreign bacterial populations. Cytophage CEO Dr. Theriault commented: “ In recognition of global variations in bacterial strains,Cytophage embraces the importance of regionalizing phage products toaddress local bacterial strains, believing that this approach willmaximize product adoption, attract suitable partners, and create asustainable long-term, defensible business model. The capability tomodify/regionalize phage products at scale appears to be unique toCytophage.”
Human Health Update
Cytophage, for the first time in Canada, was able toprovide bacteriophage for treatment of a patient at The OttawaHospital with approval from Health Canada as a single subject clinicaltrial ( see press release March 1,2024 ). The patient, who was suffering froma severe hardware-associated bone and joint infection, had undergoneseveral surgeries, and numerous antibiotic therapies, none of whichhad successfully treated their infection. The patient saw improvementin terms of reduced pain and increased mobility related to the treatedjoint. This landmark treatment received considerable attention fromnational media, including CTV and CBC, highlighting the potential ofbacteriophages as an effective alternative to antibiotics. Cytophagehas identified a second patient for phage therapy. Bacteria and phageanalysis are currently underway.
Q1 2024 Financial Highlights
The financial results of the first quarter of 2024include the consolidation of the financial results of Cytophage Technologies Lts from theclosing date of the acquisition and the accounting impacts of the transaction, and the concurrent privateplacement.
-
Cash and cash equivalentsbalance, as of March 31, 2024, were$ 5.567 million, comparedto $ million as of December 31, 2023. The increase was primarily due to the closing of the concurrent financing and the cash and cashequivalents assumed upon the completion of the transaction. The Company is focused onclosely managing its expenditures and cash resources, while alsopursuing additional non-dilutive funding sources.
-
Operating expenses, as of the three-month ended March31, 2024 were approximately $1.634 million compared to $1.213 millionfor the period ended March 31, 2023. During the period ending March31, 2024, there were approximately $0.260 million of one-time expensesthat related to the RTO. These included one-time legal,professional and listing fees.
-
Net loss was $ 4.283 million for the first quarter of 2024, compared to$ 1.116 million for thefirst quarter of 2023. The increase is primarilydue to the $2.692 million listing expense, which is a non-cashaccounting expense associated with assuming the shares and dilutivesecurities of the former Cuspis Capital III Ltd., in addition to theaforementioned $0.260 million of one-time transaction expenses,relating to legal, professional and listing fees.
For further information pleasecontact:
Heather Medwick
Chief Operating Officer
heather@cytophage.com
431 388 8873
Cytophage Investor Alerts: https://cytophage.com/subscribe/
About Cytophage Technologies
Cytophage Technologies ( TSXV:CYTO ) is apioneering biotechnology company dedicated to bacteriophage research,product development and commercialization. Committed to addressing theglobal challenge of antibiotic resistance, Cytophage advancesinnovative products that harness the power of bacteriophages to combatbacterial infections affecting human health, animal health, and foodsecurity.
Cautionary Statement onForward-Looking Information
This news release contains “forward-lookinginformation” and “forward-looking statements” (collectively,“forward-looking statements”) within the meaning of the applicableCanadian securities legislation. All statements, other than statementsof historical fact, are forward-looking statements and are based onexpectations, estimates and projections as at the date of this newsrelease. Any statement that involves discussions with respect topredictions, expectations, beliefs, plans, projections, objectives,assumptions, future events or performance (often but not always usingphrases such as “expects”, or “does not expect”, “isexpected”, “anticipates” or “does not anticipate”,“plans”, “budget”, “scheduled”, “forecasts”,“estimates”, “believes” or “intends” or variations of suchwords and phrases or stating that certain actions, events or results“may” or “could”, “would”, “might” or “will” betaken to occur or be achieved) are not statements of historical factand may be forward-looking statements. Forward-looking statementsinvolve known and unknown risks, uncertainties and other factors whichmay cause the actual results, performance or achievements of Cytophageto be materially different from any future results, performance orachievements expressed or implied by the forward-looking statements.Factors that could cause actual results to differ materially fromthose anticipated in these forward-looking statements are described under the caption “Risk Factors” inCytophage’s Filing Statement dated January 30, 2024, which isavailable for view on SEDAR+ at www.sedarplus.ca. These risks includebut are not limited to, the risks associated with the bacteriophageindustry, such as operational risks in development or capitalexpenditures, the uncertainty of extensive regulatory approvalrequirements, government regulations, protection of intellectualproperty, product liability and rapid technological advancements.Forward-looking statements contained herein are made as of the date ofthis press release, and Cytophage disclaims, other than as required bylaw, any obligation to update any forward-looking statements whetheras a result of new information, results, future events, circumstances,or if management’s estimates or opinionsshould change, or otherwise. There can be no assurance thatforward-looking statements will prove to be accurate, as actualresults and future events could differ materially from thoseanticipated in such statements. Accordingly, the reader is cautionednot to place undue reliance on forward-looking statements.
Neither the TSXV nor its RegulationServices Provider (as that term is defined in the policies of theTSXV) accepts responsibility for the adequacy or accuracy of this newsrelease.
Copyright (c) 2024 TheNewswire - All rights reserved.