Aquinox Pharmaceuticals, Inc
5/13/14

Aquinox Pharmaceuticals Announces First Quarter 2014 Financial Results

VANCOUVER, British Columbia, May 13, 2014 (GLOBE NEWSWIRE) -- Aquinox Pharmaceuticals, Inc. ("Aquinox") (Nasdaq:AQXP), a clinical-stage pharmaceutical company discovering and developing targeted therapeutics for inflammatory disease and cancer, today provided a corporate update and reported financial results for the first quarter ending March 31, 2014.

"The first quarter marked an important milestone in Aquinox's history, with the successful completion of our initial public offering," said Mr. David Main, President and CEO of Aquinox. "The proceeds allow us to advance the clinical development program for AQX-1125 in chronic obstructive pulmonary disease (COPD) exacerbations and bladder pain syndrome/interstitial cystitis (BPS/IC). Over the next 12 months, we expect to report top line data from our randomized, placebo-controlled Phase 2 studies in both of these indications."

Business Highlights

Summary of Financial Results

Going forward, Aquinox intends to host biannual conference calls and webcasts in conjunction with the reporting of financial results. These calls will correspond with the reporting of second quarter and year-end financial results.

About Aquinox Pharmaceuticals

Aquinox Pharmaceuticals, Inc. is a clinical-stage pharmaceutical company discovering and developing novel, small molecule therapeutics targeting SH2-containing inositol-5'-phosphatase 1 ("SHIP1") for the treatment of inflammatory disease and cancer. For more information, please visit www.aqxpharma.com.

Cautionary Note on Forward-looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our management. All statements other than statements of historical facts are "forward-looking statements" for purposes of these provisions, including those relating to future events or our future financial performance and financial guidance. In some cases, you can identify forward-looking statements by terminology such as "may," "might," "will," "should," "expect," "plan," "anticipate," "project," "believe," "estimate," "predict," "potential," "intend" or "continue," the negative of terms like these or other comparable terminology, and other words or terms of similar meaning in connection with any discussion of future operating or financial performance. These statements are only predictions. All forward-looking statements included in this press release are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements. Any or all of our forward-looking statements in this document may turn out to be wrong. Actual events or results may differ materially. Our forward-looking statements can be affected by inaccurate assumptions we might make or by known or unknown risks, uncertainties and other factors. In evaluating these statements, you should specifically consider various factors, including the risks outlined under the caption "Risk Factors" set forth in our final prospectus for our initial public offering, which was filed with the Securities and Exchange Commission (the "SEC") on March 7, 2014, and is available on the SEC's website at www.sec.gov. Additional information will also be set forth in our Annual Report on Form 10-Q for the quarter ended March 31, 2014, which we expect to file with the SEC in the near future and other reports and filings we will make with the SEC from time to time. We caution investors that our business and financial performance are subject to substantial risks and uncertainties.

AQUINOX PHARMACEUTICALS, INC.
(a development stage company)
Condensed consolidated and combined balance sheets
(Unaudited) (Expressed in U.S. dollars)
 
     
 MARCH 31,DECEMBER 31,
 20142013
     
Assets    
Cash and investments $55,632,427 $13,856,992
Other current assets 614,338 1,469,359
Other assets 202,723 352,755
Total assets $56,449,488 $15,649,106
     
Liabilities    
Current liabilities $1,237,602 $2,620,105
Non-current liabilities 114,644 4,863,987
Total liabilities $1,352,246 $7,484,092
     
Redeemable convertible preferred stock -- 73,858,722
     
Stockholders' equity 55,097,242 (65,693,708)
Total liabilities and stockholders' equity $56,449,488 $15,649,106
 
AQUINOX PHARMACEUTICALS, INC.
(a development stage company)
Condensed consolidated and combined statements of operations and comprehensive loss
(Unaudited) (Expressed in U.S. dollars)
 
       
 THREE MONTHS ENDEDTHREE MONTHS ENDEDDECEMBER 26, 2003 (INCEPTION) TO
 MARCH 31, 2014MARCH 31, 2013MARCH 31, 2014
Operating expenses      
Research and development  $ 1,879,514  $ 572,967  $ 43,789,126
General and administrative 734,824 423,865 10,241,412
Total operating expenses 2,614,338 996,832 54,030,538
Other income (expenses)      
Bank charges and financing costs (453,808) (1,834) (590,023)
Interest income 2,835 1,446 365,881
Sale of equipment -- 29,396 134,553
Change in fair value of derivative liabilities 913,929 -- 2,102,193
Amortization and extinguishment of remaining discount on preferred shares upon conversion of preferred shares (1,884,233) (25,438) (2,395,575)
Foreign exchange loss (192,063) (17,005) (239,484)
  (1,613,340) (13,435) (622,455)
Net loss before income taxes (4,227,678) (1,010,267) (54,652,993)
Income tax recovery -- -- 3,150,406
Net loss and comprehensive loss incurred in the development stage  $ (4,227,678)  $ (1,010,267)  $ (51,502,587)
CONTACT: Brendan Payne,

         Senior Manager, Investor Relations

         604-629-9223

         bpayne@aqxpharma.com

         

         Bianca Nery

         MacDougall Biomedical Communications

         650-339-7533

         aquinox@macbiocom.com