Lorus narrows loss for 3 months to Nov 2006

Lorus Therapeutics, a Canadian biopharmaceutical firm specializing in products and technologies for the management of cancer, says that, for the three month ended November 30, 2006, cash used in operating activities before changes in non-cash working capital was C$2.1 million ($1.8 million) compared to C$3.8 million in the same period last year. According to the Toronto-based firm, the decrease in cash used in operating activities, before changes in non-cash working capital, is due to lower R&D and general and administrative expenditures.

During the period, net loss also narrowed to C$3.1 million, or C$0.01 per share, from C$5.1 million, or $0.03 per share, as a result of reductions in R&D costs and a stock-based compensation expense of $264,000.

R&D expenditure dropped 57.4% to $1.1 million due to a reduction in toxicity study, clinical trial, compliance, manufacturing and regulatory costs associated with the Phase III development program for the immunotherapeutic, Virulizin (virulizin), which was ongoing during the first two quarters of 2006 and is now complete. In addition, due to headcount reductions implemented in November 2005, Lorus has fewer employees in R&D.