Alfacell says fiscal 2Q net loss increases to $2.29 million

By Angela McDaniels

Seattle, March 21 - Alfacell Corp.'s net loss increased by 17% to $2.29 million, or $0.06 per share, for the fiscal second quarter of 2006 ended Jan. 31 from $1.955 million, or $0.06 per share, for the same quarter of fiscal 2005, according to a company news release.

The net loss for the second quarter includes a non-cash charge of $436,000 related to accounting for share-based payment, the company said. The share-based compensation expense is expected to continue as a result of the adoption of SFAS 123(R), a Financial Standards Accounting Board practice that requires the company to charge a non-cash compensation expense for all employee stock options.

"We made significant progress during the second quarter of 2006," chief executive officer Kuslima Shogen said in the release.

"As a result, we continue to track on or ahead of schedule on key sections of the rolling New Drug Application [for Onconase]. We also remain confident that we will successfully complete all regulatory requirements necessary to gain marketing approval of Onconase in the United States, European Union and other markets."

Revenue decreased by 29% to $24,053 for the fiscal second quarter from $33,704 for the same quarter of last year. All revenue was derived from investment income.

Research and development expenses decreased 8% to $1.43 million for the second quarter from $1.55 million for the same period last year.

Alfacell said the spending decrease reflects the near-completion of key requirements for the chemistry, manufacturing and controls section of the Onconase New Drug Application for inoperable malignant mesothelioma, including toxicology studies, the registration batch stability program and a reduction in clinical trial costs as a result of reaching full patient enrollment.

The company said it ended the quarter with cash, cash equivalents and investments of $2.92 million.

Alfacell Corp. is a biopharmaceutical company based in Bloomfield, N.J., that discovers, develops and commercializes novel therapeutics for cancer and other diseases using its ribonuclease technology platform.

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