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Living Cell Technologies: Preliminary Final Report for the Year Ended 30 June, 2008

Posted on: Monday, 1 September 2008, 00:10 CDT

Living Cell Technologies Limited (ASX: LCT) (PINKSHEETS: LVCLY) today announced the Preliminary Final report (Appendix 4E) on the results for the year ended 30 June, 2008, in accordance with ASX Listing Rule 4.3A.

This financial year has been one of significant progress for LCT, having raised substantial capital and making remarkable inroads with the development of its lead cell therapy product DiabeCell(R) in clinical trials for the treatment of Type 1 diabetes. Early stage results received from the trial have already indicated clinical benefit at the lowest dose, helping to raise investor confidence.

Over the last 12 months, the company has focused on developing a global presence. Listing on the International OTCQX in New York, working with the Barbara Davis Centre for Diabetes in Denver, Colorado and appointing a US-based CEO, Dr. Robert Caspari, have enabled the company to establish a stronger international position.

Financial Results

The net loss for the financial year to 30 June 2008 was $6,974,037 compared to $5,987,322 in the prior year, a 16.5% increase in the annual loss. The net operating cash flows for the company during the year to 30 June 2008 totalled ($5,794,875) a 4.7% increase on the ($5,536,560) last financial year.

The end of year cash balance increased by 340%, up from $2,449,768 last year to $10,767,335 as at 30 June 2008. Cash from shares issued generated $14,998,445 during the year, prior to transaction costs of $699,642. The convertible note that was on the balance sheet in the prior year was converted to equity by the noteholders during the year, in accordance with the terms of the convertible note. The combined effect of now having a significantly higher cash balance and the convertible note no longer on the balance sheet results in a significantly improved working capital position for the company. This year's working capital was $10,306,026 compared to $151,639 last year, an increase of $10,154,387.

Revenue for the year was $1,354,904, an increase of $410,120 or 43.4%. Most of this increase was from a $181,659 improvement in Interest Income (from funds on deposit amounting to $292,031) as well as an increase of $194,824 in Government Grants, which totalled $1,010,521 for the year.

Key Announcements & Milestones Achieved

Since last year LCT has issued a number of significant announcements, including:

 --  Receipt of a total of approx AU$15.5m in capital placements; --  Confirmation of positive preliminary and six month interim results in     the Phase I/IIa DiabeCell(R) clinical trial; --  Receipt of approval to expand DiabeCell(R) clinical trial following     positive preliminary data; --  Presentation of LCT's encapsulation technology at international     conferences; --  Issued fourth US patent for lead product, DiabeCell(R); --  Hosted diabetes seminar for world leaders in cell therapy; --  Gained further international support from US-based Children with     Diabetes Foundation (CWDF) --  Began working with the Barbara Davis Centre for Diabetes in Denver; --  Increased US investment support through listing on the International     OTCQX; --  Strengthened US presence through appointment of US-based CEO, Robert     Caspari      

About Living Cell Technologies: www.lctglobal.com

Living Cell is developing cell-based products to treat life threatening human diseases. The Company owns a bio-certified pig herd that it uses as a source of cells for treating diabetes and neurological disorders. For patients having type 1 diabetes, the Company implants micro-encapsulated islet cells so that near-normal blood glucose levels may be achieved without the need for administration of insulin or at significantly reduced levels. The company entered clinical trials for its diabetes product in 2007. The Company is developing treatments for Huntington's disease and other neurological disorders that involve implantation of micro-encapsulated choroid plexus cells to deliver beneficial proteins and neurotrophic factors to the brain. Living Cell's technology has the potential for allowing healthy living cells to be injected into patients to replace or repair damaged tissue without requiring the use of immunosuppressive drugs to prevent rejection. Living Cell also is developing medical-grade porcine-derived products for the repair and replacement of damaged tissues, as well as for research and other purposes.

LCT Disclaimer

This document contains certain forward-looking statements, relating to LCT's business, which can be identified by the use of forward-looking terminology such as "promising,""plans,""anticipated,""will,""project,""believe,""forecast,""expected,""estimated,""targeting,""aiming,""set to,""potential,""seeking to,""goal,""could provide,""intends,""is being developed,""could be,""on track," or similar expressions, or by express or implied discussions regarding potential filings or marketing approvals, or potential future sales of product candidates. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no assurance that any existing or future regulatory filings will satisfy the FDA's and other health authorities' requirements regarding any one or more product candidates nor can there be any assurance that such product candidates will be approved by any health authorities for sale in any market or that they will reach any particular level of sales. In particular, management's expectations regarding the approval and commercialization of the product candidates could be affected by, among other things, unexpected clinical trial results, including additional analysis of existing clinical data, and new clinical data; unexpected regulatory actions or delays, or government regulation generally; our ability to obtain or maintain patent or other proprietary intellectual property protection; competition in general; government, industry, and general public pricing pressures; and additional factors that involve significant risks and uncertainties about our products, product candidates, financial results and business prospects. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. LCT is providing this information as of August 29, 2008, and does not assume any obligation to update any forward-looking statements contained in this document as a result of new information, future events or developments or otherwise.

SOURCE: Living Cell Technologies

Source: MARKET WIRE

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