<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
For the month of September 30, 2000
Nymox Pharmaceutical Corporation
9900 Cavendish Blvd., St. Laurent, QC, Canada, H4M 2V2
(Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20F or Form 40F)
Form 20 F [X] Form 40 F [ ]
(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934)
Yes [ ] No [X]
Indicate the number of outstanding shares of each of the issuer's classes of
capital or common stock as of the close of the period covered: 21,141,372 shares
as of September 30, 2000.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
NYMOX PHARMACEUTICAL CORPORATION
-----------------------------------
(Registrant)
Date: November 15, 2000 /s/ Paul Averback
-----------------------------------
Paul Averback, MD - President
<PAGE> 2
MESSAGE TO SHAREHOLDERS
-----------------------
Nymox is pleased to present its results for the third quarter of 2000.
In the United States, September was proclaimed as Health in Aging Month, 2000 to
recognize the extraordinary challenges to health and social systems posed by the
increasingly aging population in the United States and, in particular, by such
chronic conditions of the aged as osteoporosis, heart and lung disease, dementia
and stroke. Nymox's product portfolio is well-positioned to provide diagnostic
testing for aging baby boomers.
Nymox Corporation, Nymox's Delaware subsidiary, is currently offering its
urinary AD7C(TM) clinical laboratory service to physicians across the United
States and throughout the world as an aid to the diagnosis of Alzheimer's
disease, the most common cause of dementia in the elderly. The AD7C(TM) test
detects elevated levels of a brain protein, neural thread protein or NTP, in the
urine of patients suspected of having Alzheimer's disease. Nymox's
AlzheimAlert(TM) test offers a more technically advanced means to detect
elevated levels of NTP in urine either through a clinical reference laboratory
service or, subject to regulatory approvals where necessary, in a point of care
format usable in a general medical laboratory or appropriately equipped doctor's
office.
Serex, Inc., Nymox's majority owned New Jersey subsidiary, currently is
marketing its NicAlert(TM) dipstick assay which can sensitively provide a
measurement of the level of exposure to tobacco and nicotine products. The
NicAlert(TM) is available in versions that use either urine or saliva samples.
The FDA has identified tobacco consumption as the single leading cause of
preventable death in the United States from such tobacco-related illnesses as
heart and lung disease and cancer.
In Serex's product pipeline are tests employing its proprietary technology to
detect a variety of markers for such diseases as osteoporosis and conditions
such as high blood cholesterol levels. Serex's OsteoAlert(TM) test under
development can detect a marker for bone mass loss, an indicator of
osteoporosis. Osteoporosis is the most prevalent of bone diseases that affect
Americans. The National Institute of Arthritis and Musculoskeletal and Skin
Diseases estimates that one out of every two women and one in eight men over 50
will have an osteoporosis-related fracture in his or her lifetime. Serex's
LipidAlert(TM) test under development provides a sensitive measurement in saliva
that correlates with cholesterol levels and the associated risk of heart disease
and stroke.
In July, Nymox announced that a new study in the most recent issue of
"Alzheimer's Reports" (Volume 3, number 3), a peer-reviewed medical journal,
showed that Nymox's 7C Gold urinary test could distinguish with a high degree of
accuracy patients with Alzheimer's disease from normal controls. The study was a
joint collaboration, with samples independently provided by several U.S.
institutions.
<PAGE> 3
Fourteen peer-reviewed published medical journal studies have already documented
the usefulness and relevance of NTP, including a recent confirmatory independent
study from researchers at Stanford University published in Neurology
(54:1498-1504,2000), the official journal of the American Academy of Neurology.
In the recent paper published in Alzheimer's Reports (2000), the authors
reported favorably on tests of Nymox's new 7C Gold urinary test for the presence
of AD7C-NTP. Urine samples from 58 patients with Alzheimer's disease and 31
normal healthy controls were analyzed. The findings were that "AD7C-NTP in urine
as measured by the 7C Gold test is significantly elevated in the case of
patients with Alzheimer's disease compared to aged matched healthy controls,
with a sensitivity of 91% and a specificity of 96.8%. The study found: `AD7C-NTP
is further validated as a biochemical marker for Alzheimer's disease.' The 7C
Gold test in urine is an accurate method to determine AD7C-NTP levels in
Alzheimer's disease."
The 7C Gold version of the test consists of monoclonal antibody bound colloidal
gold particles and special membranes with coated antibodies and relands. It
measures gold particle migration after treatment with the patient's urine.
Individuals with Alzheimer's disease who have higher levels AD7C-NTP have
equally higher levels of gold migration. The unique and patented 7C Gold test is
easy to perform and produces visible results in less than half an hour.
Also in July, in a peer-reviewed research publication, an international group of
scientists reported important new evidence linking Spherons to Alzheimer's
disease. The researchers found that proteins in Spherons bear the same
distinctive and highly unusual hallmark as those in senile plaques -- the
characteristic lesion found abundantly in the brains of patients with
Alzheimer's disease and believed by many researchers to play a pivotal role in
the illness. This new finding reinforces the link between Spherons and
Alzheimer's disease in humans and adds major credence to the belief of Nymox
researchers that the bursting of Spherons in the human brain causes the illness.
The paper, "Spherons and Alzheimer's disease: biochemical, immunological and
cell biological studies," was jointly authored by Paul Averback of Nymox, Judith
Fitzpatrick of Serex, Inc., Leslie Iversen of King's College London, Darrell
Kaufman of Northern Arizona University and David Morse of the University of
Montreal and was published in England in the latest issue of Alzheimer's Reports
(Volume 3, Number 3, pages 177-184).
In the new studies, researchers used a panel of highly specific monoclonal
antibodies on digested Spherons in order to visualize through electron
microscopy molecular targets in the Spheron fragments. The results strongly
confirmed earlier studies that showed that Spherons contain key molecules that
are later found in the Alzheimer senile plaques.
Using sophisticated techniques to determine the age of protein, the researchers
found that proteins in Spherons are extremely old in terms of the human body's
metabolism, up to 80 years old in some cases, with an average age of 20 to 40
years. Earlier findings by other researchers had found similar evidence of age
in proteins found in senile plaques. Spherons and senile plaques are the only
known sources of these old proteins found to date in the brain.
<PAGE> 4
Spherons are tiny balls of densely packed protein found in brain cells scattered
throughout the brains of all humans from age one. Nymox researchers have found
that as humans age the Spherons grow until they become too large for the cells
that hold them. Once released from the cells, the Spherons burst, becoming
senile plaques. Nymox is the leader in Spheron research and has pioneered in
this area of drug discovery (see cover article in Drug News and Perspectives,
December 1998).
The new research confirmed earlier findings that Spherons, like senile plaques,
contain amyloid proteins and applied a technique used by forensic scientists to
date teeth and bones in order to date the Spheron proteins. The technique relies
on an earlier discovery that some of the constituent amino acids of proteins
slowly change over the years at a reasonably constant rate through a process
called racemization. By measuring these changes, scientists can determine the
age of such proteins. Highly racemized proteins are rare in the human body
because the body recycles almost all of its proteins in a matter of days and
weeks. Only proteins conserved in stable structures like bone and teeth last for
the years necessary to produce these signs of age. New proteins produced in the
brain are not significantly racemized. The only known sources of these highly
racemized proteins in the brain are Spherons and senile plaques.
On September 5th, Nymox presented new findings linking Spherons to Alzheimer's
disease at the XIVth International Congress of Neuropathology in Birmingham,
England.
Nymox is developing drug candidates to halt the transformation of Spherons into
senile plaques and targeted to slow or stop the progression of Alzheimer's
disease. The company also holds extensive patent rights both on specific unique
Spheron-based drug candidates and on the use of Spherons as a target for drug
therapy.
On September 14th, scientists from Nymox showed the first video footage ever
seen of individual human brain spherons bursting to form Alzheimer's disease
brain plaques. In a presentation given at the Second Manhattan Alzheimer's
Disease Conference at the Harvard Club in New York City, Nymox scientists showed
unique video footage of real spherons individually transforming into Alzheimer's
plaques - the characteristic brain abnormality in Alzheimer's disease. This
display represented the first time ever that a real human brain entity has been
witnessed in the act of forming the key Alzheimer brain abnormality.
Spherons progressively increase in size throughout life until they become so big
(many hundred times bigger by age 75 compared to age one) that they burst.
According to Nymox researchers, the bursting spheron then turns into the senile
amyloid plaques of Alzheimer's disease. To prove this, Nymox researchers first
showed that spherons and plaques were located in the exactly identical specific
locations in the brain, and that the number of plaques which appears in
Alzheimer's disease was correlated with the number of spherons which have
disappeared. Then they extracted and purified spherons from the brain and showed
that spherons contained the marker molecules found in plaques. The Nymox team
then showed that spherons can be turned into plaques when they are burst in the
test tube or when they are injected into experimental animals. In addition, the
Nymox researchers provided 20 highly specific criteria of validity linking
spherons to Alzheimer's. The Nymox drug candidates in development are capable of
blocking the transformation of human spherons into plaques in the test tube and
in the experimental animal. These Nymox compounds offer rational hope for
treatments that may eventually be capable of slowing the progression of
Alzheimer's disease.
<PAGE> 5
At the same conference, Nymox announced that new clinical studies of its NTP
test in Alzheimer's disease (AD) had shown very positive results. Data on the
new test were presented by Greg Golden Ph.D. of Thomas Jefferson University in
Philadelphia, Judith Fitzpatrick Ph.D. of Serex Inc., and Michael Munzar MD of
Nymox.
First morning urine samples from 40 cases of AD and 40 age-matched controls
showed that the Nymox NTP Test was over 90% accurate in these studies. These
findings now confirm earlier peer-reviewed published studies which have found
that urinary NTP is an accurate test to help physicians in the diagnosis of or
ruling out of Alzheimer's Disease.
NTP is the only proven non-invasive test of its kind, which has been shown in
independent studies and extensive peer-reviewed publications in the medical
literature to be highly useful as an aid to the diagnosis of dementia and
Alzheimer's disease. The Nymox NTP marker has been referred to as a "successful
in vitro diagnostic" by the official publication of the American Association for
Clinical Chemistry (1999, 25, 9).
On September 19th, Nymox announced that it signed a letter of intent for a
distribution and marketing agreement for the 7C Gold NTP test for use in
Alzheimer's disease with Pharmatech Business Services Inc. (IVP/PBS) of Dallas,
Texas. IVP/PBS is a national specialty pharmacy based in Carrollton, Texas. A
sampling of services offered by IVP care include: nationwide delivery, 24 hours
a day 7 days a week availability, educational consultation and confidential
clinical support.
On September 27th, Nymox announced that it began an extensive new marketing
initiative for the AlzheimAlert(TM) test, Nymox's unique urine test aid for the
diagnosis or exclusion of Alzheimer's disease. The Company appointed a new Sales
Executive with a new roster of 35 new sales representatives to promote the test
in the U.S. Charles Collins, based in Orlando, Florida, was appointed to the
post of U.S. National Sales Executive and will be in charge of the new sales
force. The 35 new representatives are mainly U.S. based, with 2 representatives
also in Canada.
On September 25th, Nymox announced that recent studies demonstrated that the
Nymox-Serex nicotine dipstick test is a highly useful adjunct to smoking
cessation regimes and for measurement of secondhand smoke exposure. The
Company's test is a proven product which has been used for many years by experts
in the field at institutions such as the University of Texas, Brown University,
MD Anderson, and by reference laboratories such as Smith Kline Beecham.
<PAGE> 6
The Company's test is also useful for monitoring the exposure of pregnant women
to smoke, for monitoring smoking cessation efforts in smokers, and for
assessments of cardiac and pulmonary patients. Measuring urinary nicotine is
useful for parental monitoring of adolescent smoking behavior. Nicotine
assessment is also of major importance to the insurance industry to screen for
smoking and smoke exposure. The Company's nicotine test has the distinct
advantage of being the only quantitative point-of-care nicotine test available
in the world.
APPOINTMENTS
------------
On August 16th, Nymox announced the appointment of Senator Larry Pressler as
Senior Consultant for the Company. Senator Pressler was Member of Congress for
22 years with 18 years in the U.S. Senate. He was Chairman of the Senate
Commerce, Science and Transportation Committee and was author of numerous
foreign policy, business and trade legislations during his time in Congress, and
authored the Telecommunications Act of 1996. Senator Pressler is a former Rhodes
Scholar and graduate of Oxford University and Harvard Law School. He is a
Vietnam veteran (U.S. Army). Senator Pressler was awarded Vietnam Service
Medals. Senator Pressler is a member of the Council on Foreign Relations, the
District of Columbia Bar, and the New York State Bar. He currently is a senior
partner in the Washington, D.C. law firm of O'Connor & Hannan, is chair of the
law firm's Telecommunications and Business Group. Senator Pressler serves on the
Boards of Directors and Boards of Advisers of several important companies in the
pharmaceutical, telecommunications, and financial sectors, and is very active in
numerous charitable organizations. He specializes in regulatory law, commercial
law and telecommunications law.
On September 21st, Nymox announced the appointment of Suzanne Levy Ph.D. as new
Clinical Chemistry Laboratory Scientific-Director for the Nymox Clinical
Reference Laboratory in Maywood, New Jersey. Nymox's Clinical Reference
Laboratory is a CLIA federally certified facility that performs testing of urine
samples submitted by physicians for measurements of 7C Gold NTP, Nymox's
diagnostic aid to help rule in or rule out Alzheimer's disease.
Suzanna Levy Ph.D. joins Nymox as Clinical Laboratory Scientific Director. Dr.
Levy is Associate Professor at Mount Sinai School of Medicine. She is a Director
of Clinical Chemistry, Toxicology, and Endocrinology licensed by the Departments
of Health of New York City and the State of New York, and is a Charter Member of
the National Academy of Clinical Biochemistry. Dr. Levy has been Chief of
Clinical Chemistry at St. Barnabas Hospital in the Bronx, and at Mount Sinai
Services at Elmhurst Hospital, and is currently Regional Chief of Clinical
Chemistry of the Queens Health Network. She is an Executive Committee member of
the American Association for Clinical Chemistry and is a consultant and advisor
to many of the top diagnostic development laboratories in the U.S. Dr. Levy has
long experience and expertise in technical development, validation, and
regulatory matters for automated testing.
<PAGE> 7
We wish to thank our over 4,000 shareholders for their valuable continued
support. Nymox welcomes the challenges ahead and is confident that it will
continue to meet or surpass its important milestones.
Paul Averback MD - President & C.E.O.
November 15, 2000
This message contains certain "forward-looking statements" as defined in
the United States Private Securities Litigation Reform Act of 1995, that
involve a number of risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and the actual results and future
events could differ materially from management's current expectations. Such
factors are detailed from time to time in Nymox's filings with the
Securities and Exchange Commission and other regulatory authorities.
<PAGE> 8
MANAGEMENT'S DISCUSSION AND ANALYSIS
(IN US DOLLARS)
REVENUES
Total revenues amounted to $177,443 for the nine months ended September 30,
2000, compared with $153,060 for the same period in 1999. Sales revenues
amounted to $123,584 for the nine months ended September 30, 2000, compared with
$123,672 for the same period last year. All of the sales revenue was derived in
the United States from our various products and services.
RESEARCH AND DEVELOPMENT
Research and development expenditures were $1,152,662 for the nine month period
ended September 30, 2000, compared with $859,843 for the same period in 1999.
Expenses in this area were budgeted to increase in 2000 with the new financing
secured by the Company.
MARKETING EXPENSES
Marketing expenses were $734,965 for the first nine months of 2000 compared to
$732,727 for the same period in 1999.
ADMINISTRATIVE EXPENSES AND COST OF SALES
General, administrative and cost of sales expenses were $1,128,899 for the
period ended September 30, 2000, compared with $904,345 for the same period in
1999. The increase is principally attributable to professional fees.
LONG-TERM COMMITMENTS
Nymox has no financial obligations of significance other than long-term lease
commitments for its premises in the United States and Canada of $17,103 per
month and ongoing research funding payments to a U.S. medical facility totaling
$172,000 for 2000.
RESULTS OF OPERATIONS
Net losses for the nine months ended September 30, 2000 were $3,014,470, or
$0.15 per share, compared to $2,410,489, or $0.12 per share, for the same period
in 1999.
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 2000, cash totaled $883,400. In November 1999, the
Corporation signed a common stock purchase agreement whereby the investor is
committed to purchase up to $11 million of the Corporation's common shares over
a thirty-month period commencing March 2000, when our F-1 registration statement
was declared effective. The Company also completed a private placement in March
2000 comprising 666,667 common shares at $6.00 per share, for total proceeds of
$4,000,000. A total of 93,334 warrants were issued as well, exercisable at a
price of $9.375 per share (66,667) and $7.8125 per share (26,667). These
warrants expire on March 6, 2004. An additional 75,688 common shares were issued
in July pursuant to the repricing terms of the private placement agreement.
<PAGE> 9
Consolidated Financial Statements of
(Unaudited)
NYMOX PHARMACEUTICAL
CORPORATION
Periods ended September 30, 2000, 1999 and 1998
<PAGE> 10
NYMOX PHARMACEUTICAL CORPORATION
Consolidated Financial Statements
(Unaudited)
Periods ended September 30, 2000, 1999 and 1998
FINANCIAL STATEMENTS
<TABLE>
<S> <C>
Consolidated Balance Sheets............................................ 1
Consolidated Statements of Operations.................................. 2
Consolidated Statements of Deficit..................................... 3
Consolidated Statements of Cash Flows.................................. 4
Notes to Consolidated Financial Statements............................. 5
</TABLE>
<PAGE> 11
NYMOX PHARMACEUTICAL CORPORATION
Consolidated Balance Sheets
(Unaudited)
September 30, 2000 and 1999, with comparative figures as at December 31, 1999
(in US dollars)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
September 30, September 30, December 31,
2000 1999 1999
---------------------------------------------------------------------------------------------------------------
(Unaudited) (Unaudited) (Audited)
<S> <C> <C> <C>
ASSETS
Current assets:
Cash $ 883,400 $ 459,651 $ 449,363
Short-term investments - 181,771 -
Accounts receivable 40,120 341,899 24,611
Research tax credits receivable 10,457 17,268 3,180
Notes receivable - 183,659 181,280
Other receivables 76,019 - 18,390
Prepaid expenses 117,500 101,670 100,000
---------------------------------------------------------------------------------------------------------------
1,127,496 1,285,918 776,824
Capital assets 1,352,411 1,116,034 1,168,316
Deferred share issuance costs 232,618 - 195,351
Intellectual property rights acquired (note 2) 877,505 - -
---------------------------------------------------------------------------------------------------------------
$ 3,590,030 $ 2,401,952 $ 2,140,491
---------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $ 276,364 $ 190,998 $ 486,916
Note payable - - 346,428
---------------------------------------------------------------------------------------------------------------
276,364 190,998 833,344
Shareholders' equity:
Share capital 22,262,050 16,912,963 16,912,963
Deficit (18,948,384) (14,702,009) (15,605,816)
---------------------------------------------------------------------------------------------------------------
3,313,666 2,210,954 1,307,147
Subsequent event (note 5)
---------------------------------------------------------------------------------------------------------------
$ 3,590,030 $ 2,401,952 $ 2,140,491
---------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
<PAGE> 12
NYMOX PHARMACEUTICAL CORPORATION
Consolidated Statements of Operations
(Unaudited)
Periods ended September 30, 2000, 1999 and 1998
(in US dollars)
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
Three months ended September 30, Nine months ended September 30,
--------------------------------------- -----------------------------------------
2000 1999 1998 2000 1999 1998
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Revenue:
Service fees $ 50,096 $ 18,710 $ 18,542 $ 123,584 $ 123,672 $ 41,665
Interest 19,627 11,449 61,552 53,859 29,388 129,886
--------------------------------------------------------------------------------------------------------------------------
69,723 30,159 80,094 177,443 153,060 171,551
Expenses:
Research and development 347,643 270,001 640,644 1,152,662 859,843 1,523,469
Less investment tax credits (299) (11,972) (9,225) (7,952) (13,265) (12,930)
--------------------------------------------------------------------------------------------------------------------------
347,344 258,029 631,419 1,144,710 846,578 1,510,539
Marketing 280,102 203,233 625,370 734,965 732,727 1,781,053
General, administrative
and costs of sales 278,790 367,001 92,834 1,128,899 904,345 421,876
Depreciation and amortization 77,818 49,202 28,864 170,946 116,496 88,845
Interest and bank charges 9,543 7,865 12,522 12,393 10,087 15,693
--------------------------------------------------------------------------------------------------------------------------
993,597 885,330 1,391,009 3,191,913 2,610,233 3,818,006
Gain on disposal of capital assets - - - - (46,684) -
--------------------------------------------------------------------------------------------------------------------------
Net loss $ (923,874) $ (855,171) $(1,310,915) $(3,014,470) $(2,410,489) $(3,646,455)
--------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------
Loss per share $ (0.04) $ (0.04) $ (0.07) $ (0.15) $ (0.12) $ (0.19)
--------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------
Weighted average
number of common
shares outstanding 21,028,767 19,932,804 19,592,274 20,732,514 19,847,612 19,239,411
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
<PAGE> 13
NYMOX PHARMACEUTICAL CORPORATION
Consolidated Statements of Deficit
(Unaudited)
Periods ended September 30, 2000, 1999 and 1998
(in US dollars)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Three months ended September 30, Six months ended September 30,
------------------------------------------ --------------------------------------------
2000 1999 1998 2000 1999 1998
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Deficit, beginning of
period $(17,999,396) $(13,846,838) $ (9,808,806) $ (15,605,816) $(12,256,479) $ (7,415,759)
Net loss (923,874) (855,171) (1,310,915) (3,014,470) (2,410,489) (3,646,455)
Share issue costs (25,114) - - (328,098) (35,041) (57,507)
------------------------------------------------------------------------------------------------------------------------------------
Deficit, end of period $(18,948,384) $(14,702,009) $(11,119,721) $ (18,948,384) $(14,702,009) $(11,119,721)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
<PAGE> 14
NYMOX PHARMACEUTICAL CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
Periods ended September 30, 2000, 1999 and 1998
(in US dollars)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
Three months ended September 30, Nine months ended September 30,
----------------------------------------- --------------------------------------
2000 1999 1998 2000 1999 1998
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (923,874) $ (855,171) $ (1,310,915) $ (3,014,470) $ (2,410,489) $ (3,646,455)
Adjustments for:
Depreciation and
amortization 77,818 49,202 28,864 170,946 116,496 88,845
Gain on disposal
of capital assets - - - - (46,684) -
Change in operating
assets and liabilities (207,094) (137,174) (108,354) (245,810) (5,501) (309,894)
----------------------------------------------------------------------------------------------------------------------------------
(1,053,150) (943,143) (1,390,405) (3,089,334) (2,346,178) (3,867,504)
Cash flows from financing activities:
Proceeds from issuance
of share capital 500,000 445,160 - 4,500,000 969,254 5,178,737
Share issue costs (15,000) - - (365,365) (35,041) (57,507)
Repayment of note
payable - - - (346,428) - -
----------------------------------------------------------------------------------------------------------------------------------
485,000 445,160 - 3,788,207 934,213 5,121,230
Cash flows from investing activities:
Additions to capital
assets (99,524) (60,471) (62,605) (264,836) (95,238) (219,651)
Proceeds on disposal
of capital assets - - - - 189,084 -
Net proceeds on
maturity of (purchases
of) short-term
investments - - (31,626) - 1,282,864 (805,436)
----------------------------------------------------------------------------------------------------------------------------------
(99,524) (60,471) (94,231) (264,836) 1,376,710 (1,025,087)
----------------------------------------------------------------------------------------------------------------------------------
(Decrease) increase in
cash (667,674) (558,454) (1,484,636) 434,037 (35,255) 228,639
Cash, beginning of period 1,551,074 1,018,105 2,064,733 449,363 494,906 351,458
---------------------------------------------------------------------------------------------------------------------------------
Cash, end of period $ 883,400 $ 459,651 $ 580,097 $ 883,400 $ 459,651 $ 580,097
---------------------------------------------------------------------------------------------------------------------------------
Supplemental disclosure to statements of cash flows:
(a) Interest paid $ 9,543 $ 7,865 $ 12,522 $ 12,393 $ 10,087 $ 15,693
(b) Non-cash
transactions:
- Acquisition of
Serex, Inc. by
issuance of
common shares 191,261 - - 849,086 - -
- Amortization of
deferred share
issue costs 10,114 - - 10,114 - -
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
<PAGE> 15
NYMOX PHARMACEUTICAL CORPORATION
Notes to Consolidated Financial Statements
(Unaudited)
Periods ended September 30, 2000, 1999 and 1998
(in US dollars)
--------------------------------------------------------------------------------
Nymox Pharmaceutical Corporation (the "Corporation"), incorporated under the
Canada Business Corporations Act, is a development stage biopharmaceutical
corporation which specializes in the research and development of neurological
therapeutics and diagnostics for the aging population, with an emphasis on
Alzheimer's disease.
Since inception, the Corporation's activities have been primarily focused on
developing certain pharmaceutical technologies and obtaining outside funding to
support the continued development of its technologies. The Corporation is
subject to a number of risks, including the successful development and marketing
of its technologies. In order to achieve its business plan, the Corporation
anticipates the need to raise additional capital.
The Corporation is listed on the NASDAQ Stock Market.
1. BASIS OF PRESENTATION:
(a) Consolidation and change in measurement currency:
The consolidated financial statements of the Corporation have been
prepared under Canadian generally accepted accounting principles and
include the accounts of its wholly-owned US subsidiaries. Significant
intercompany balances and transactions have been eliminated on
consolidation.
Effective January 1, 2000, the Corporation adopted the United States
dollar as its measurement currency as a result of the significance of
business activities conducted in the United States and the increasing
proportion of operating, financing and investing transactions in the
Canadian operations that are denominated in U.S. dollars. In
accordance with Canadian GAAP, comparative figures for 1999 and 1998
included in these consolidated financial statements have been
presented in US dollars using the convenience translation method
whereby all Canadian dollar amounts were converted into US dollars at
the closing exchange rate at December 31, 1999, which was $1.4433
Canadian dollar per US dollar.
(b) Interim financial statements:
The unaudited consolidated balance sheets as at September 30, 2000 and
1999 and the unaudited consolidated statements of operations, deficit
and cash flows for the periods ended September 30, 2000, 1999 and 1998
reflect all adjustments which are, in the opinion of management,
necessary to a fair statement of the results of the interim periods
presented. There are no adjustments in these interim financial
statements other than normal recurring adjustments.
<PAGE> 16
NYMOX PHARMACEUTICAL CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended September 30, 2000, 1999 and 1998
(in US dollars)
--------------------------------------------------------------------------------
2. BUSINESS ACQUISITION:
On January 8, 2000, the Corporation entered into a share purchase agreement
to acquire a controlling interest in Serex, Inc. ("Serex"), a
privately-held development stage corporation based in New Jersey. The
Corporation acquired 72.3% of the issued and outstanding common stock of
Serex in exchange for 187,951 common shares of the Corporation having a
value of approximately $657,825, and a warrant to purchase 115,662 of the
Corporation's common shares at a price of $3.70 per share exercisable on
the following dates: (i) January 8, 2001 - 35,783 shares, (ii) January 8,
2002 - 30,000 shares, (iii) January 8, 2003 - 30,000 shares, (iv) January
8, 2004 - 19,879 shares. In connection with this acquisition, the
Corporation also issued 40,000 options to the selling shareholder to
purchase the Corporation's shares. The options are exercisable at a price
of $3.70/share over a four-year period.
Details of the acquisition are as follows:
<TABLE>
---------------------------------------------------------------------------
<S> <C>
Assets acquired:
Current assets $ 98,746
Capital assets 19,056
Current liabilities (217,369)
--------------------------------------------------------------------------
(99,567)
Patents, technological platform and know-how acquired
("intellectual property rights") 757,392
--------------------------------------------------------------------------
Value of assets acquired $ 657,825
--------------------------------------------------------------------------
Consideration:
Common shares $ 657,825
--------------------------------------------------------------------------
</TABLE>
On August 1, 2000, the Corporation acquired an additional 293,138 shares of
Serex for a consideration consisting of 54,646 common shares of the
Corporation having a value of $191,261 and warrants to purchase 33,627 of
the Corporation's common shares at a price of $3.70 per share. After this
transaction, the Corporation held approximately 93% of the outstanding
shares of Serex.
At September 30, 2000, the balance of intellectual property rights
consisted of:
--------------------------------------------------------------------------
<TABLE>
<S> <C>
Intellectual property rights, at cost $ 948,653
Less amortization (71,148)
--------------------------------------------------------------------------
$ 877,505
--------------------------------------------------------------------------
</TABLE>
<PAGE> 17
NYMOX PHARMACEUTICAL CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended September 30, 2000, 1999 and 1998
(in US dollars)
--------------------------------------------------------------------------------
3. CANADIAN/US REPORTING DIFFERENCES:
(a) Consolidated statements of earnings:
The reconciliation of earnings reported in accordance with
Canadian GAAP with U.S. GAAP is as follows:
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Three months ended September 30, Nine months ended September 30,
----------------------------------------- --------------------------------------------
2000 1999 1998 2000 1999 1998
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net loss,
Canadian GAAP $ (923,874) $(855,171) $(1,310,915) $(3,014,470) $(2,410,489) $(3,646,455)
Adjustments:
Amortization of patents (i) (214) (22,803) (11,382) 4,178 (49,942) (32,161)
Change in reporting currency (iii) - 25,076 (1,000) - 70,682 (2,781)
Intellectual property rights (iv) (191,261) - - (948,653) - -
Amortization of intellectual
property rights (iv) 34,358 - - 71,148 - -
------------------------------------------------------------------------------------------------------------------------------------
(157,117) 2,273 (12,382) (873,327) 20,740 (34,942)
------------------------------------------------------------------------------------------------------------------------------------
Net loss, U.S. GAAP $(1,080,991) $(852,898) $(1,323,297) $(3,887,797) $(2,389,749) $(3,681,397)
------------------------------------------------------------------------------------------------------------------------------------
Loss per share, U.S. GAAP $ (0.05) $ (0.04) $ (0.07) $ (0.19) $ (0.12) $ (0.19)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(b) Consolidated shareholders' equity:
The reconciliation of shareholders' equity reported in accordance
with Canadian GAAP with U.S. GAAP is as follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
September 30,
------------------------------------------------
2000 1999 1998
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Shareholders' equity, Canadian GAAP $ 3,313,666 $2,210,955 $4,006,103
Adjustments:
Amortization of patents (i) (163,239) (216,391) (158,088)
Stock-based compensation - options granted to
non-employees (ii):
Cumulative compensation expense (1,000,416) (749,038) (518,700)
Additional paid-in capital 1,000,416 785,031 506,070
Change in reporting currency (iii) - (11,240) 65,274
Intellectual property rights (iv) (948,653) - -
Amortization of intellectual property rights (iv) 71,148 - -
------------------------------------------------------------------------------------------------------------------------------------
(1,040,744) (191,638) (105,444)
------------------------------------------------------------------------------------------------------------------------------------
Shareholders' equity, U.S. GAAP $ 2,272,922 $2,019,317 $3,900,659
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 18
NYMOX PHARMACEUTICAL CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended September 30, 2000, 1999 and 1998
(in US dollars)
--------------------------------------------------------------------------------
3. CANADIAN/US REPORTING DIFFERENCES (CONTINUED):
(i) In accordance with APB Opinion 17, Intangible Assets, the patents
are amortized using the straight-line method over the legal life
of the patents from the date the patent was secured. For
Canadian GAAP purposes, the patents are amortized commencing
in the year of commercial production of the developed products.
(ii) In accordance with FAS 123, Accounting for Stock-Based
Compensation, compensation related to the stock options granted to
non-employees has been recorded in the accounts based on the fair
value of the stock options at the grant date. There are no comparable
Canadian standards.
(iii) As explained in note 1 (a), the Company adopted the US dollar as its
reporting currency effective January 1, 2000. For Canadian
GAAP purposes, the financial Information for 1999 and 1998 has
been translated into US dollars at the December 31, 1999 exchange
rate. For United States GAAP reporting purposes, assets and
liabilities for all periods presented have been translated into US
dollars at the ending exchange rate for the respective period and
the statement of earnings at the average exchange rate for the
respective period.
(iv) Under U.S. GAAP, purchased research and development with no
alternative future uses is expensed in the year of acquisition.
In Canada, the acquisition of intellectual property rights and
know-how is capitalized and amortized using the straight-line basis
over the period of intended benefit, which was determined to be ten
years.
4. SEGMENT DISCLOSURES:
Geographic segment information was as follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
United
Canada States
--------------------------------------------------------------------------------
<S> <C> <C>
Revenues:
2000 $ 53,859 $ 123,584
1999 29,388 123,672
1998 129,886 41,665
Net loss:
2000 (1,879,670) (1,134,800)
1999 (1,799,785) (610,704)
1998 (1,357,111) (2,289,344)
Identifiable assets:
September 30, 2000 3,138,662 451,368
September 30, 1999 2,009,682 392,270
December 31, 1999 1,714,416 426,075
--------------------------------------------------------------------------------
</TABLE>
<PAGE> 19
NYMOX PHARMACEUTICAL CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended September 30, 2000, 1999 and 1998
(in US dollars)
--------------------------------------------------------------------------------
5. SUBSEQUENT EVENT:
In October 2000, the Corporation issued 137,889 common shares for proceeds
of $500,000 under its common stock purchase agreement with Jaspas
Investments Limited.
<PAGE> 20
