Intellipharmaceutics Announces First Quarter 2010 Results
TORONTO, April 13, 2010 (GLOBE NEWSWIRE) -- Intellipharmaceutics International Inc. (Nasdaq:IPCI)
(TSX:I), a pharmaceutical company specializing in the research, development and manufacture of controlled and
targeted novel oral solid drugs, today reported the results of operations for the three month period ended
February 28, 2010. All comparative information is that of the predecessor company Intellipharmaceutics Ltd.
("IPC Ltd"). All dollar amounts referenced herein are in United States dollars unless otherwise noted.
The loss for the three month period ended February 28, 2010 was $1.4 million, or $0.13 per common share,
compared with a loss of $0.6 million, or $0.06 per common share for the three month period ended March 31,
2009. The increased period-over-period loss is mainly due to increases in both research and development
expenses and increases in selling, general and administrative expenses.
The Company increased research and development expenditures as a result of a stronger financial position during
the three month period ended February 28, 2010 in comparison to the three month period ended March 31,
2009. This stronger financial position is allowing Intellipharmaceutics to pursue its strategy of advancing its
products from the formulation stage through product development, regulatory approval and manufacturing before
out-licensing marketing and sales rights to established organizations.
The increase in selling, general and administrative expenses is due to an increase in expenses related to legal fees,
wages, and marketing cost and due to certain expenditures which were not incurred in the comparable period as
Intellipharmaceutics was not a publicly traded company during that time.
At February 28, 2010, Intellipharmaceutics' cash totaled $5.0 million, compared with $8.0 million at November
30, 2009. The decrease is a result of cash used in operating activities, the payment of C$0.7 million in costs
associated with the O