PDF Version
(save file first before opening)

Stock exchange listing Toronto Stock Exchange (TSX)
Stock symbol NPC
Shares outstanding - fully diluted 75.5 M
Cash $13.1 M

(As of Dec 31, 2007)

2008 Milestones

Release data from Al-108 Alzheimer's program Phase II trial

Complete Pharmaceutical partnership

Release data from AL-108 Phase II schizophrenia trial

Release data from AL-208 Phase II MCI-CABG trial

Initiate AL-108 Phase IIb clinical trial

Advance compound to IND-ready

Initiate and release data from Phase I trial for AL-108 in CSF 
---(cerebrospinal fluid)

Highlights

Unmet medical need

Drugs to treat central nervous system (CNS) disorders represent
the second largest pharmaceutical market in the world, valued at
approximately $87 billion per year. Within the CNS category,
Allon is pursuing treatments for neurodegenerative diseases which
represented approximately $37 billion of sales in 2005.

Allon’s focus

Allon’s focus is developing drugs that treat the cause of neurodegeneration. In numerous animal studies, our unique class of drugs protect neurons, the nerve cells that are the basis of brain function, against neurodegeneration. Allon’s drug candidates are welltolerated, readily administered and suitable for drug development.

Clinical trials

Allon has two products in human clinical trials: AL-108 and AL-208. The Company’s clinical development strategy is to find a signal of human efficacy as quickly as possible, while exploiting the numerous market opportunities that exist, and continue building a strong clinical foundation with the FDA.

In Q1 2007, Allon initiated dosing for a Phase II trial evaluating AL-108 in amnestic Mild Cognitive Impairment (MCI), a pre cursor to Alzheimer’s disease. Approximately 15% of the elderly population suffers from MCI and 85% of these people will develop Alzheimer’s disease, according to the Alzheimer’s Society. The Phase II trial will be a multi-center, double-blind, randomized, placebo-controlled, multiple-dose study to evaluate the safety, tolerability and effect on cognitive function of AL-108 after 12 weeks of intranasal administration
in patients with amnestic MCI aged 55 to 85 years. As many as 15 clinical sites in the United States will participate. Results are expected in H1 ‘08.

Also in Q1 2007, the Company announced that its Investigational New Drug (IND) application with the Unites States Food and Drug Administration (FDA), filed on February 20th 2007, is now active and the Company expects to begin human clinical trials evaluating the Company’s product AL-108 as a treatment for schizophrenia-related cognitive impairment. Allon was selected by the United States National Institute of Mental Health-funded project TURNS (Treatment Units for Research on Neurocognition and Schizophrenia) for a Phase II clinical trial. Earlier in the quarter Allon announced it has also received funding from The Michael J. Fox Foundation for Parkinson’s Research (MJFF) to evaluate the effectiveness of Allon’s drug AL-108 in pre-clinical models of Parkinson’s disease.

In Q2 2006, Allon began a Phase II trial evaluating the safety and effectiveness of AL-208 as a treatment for Mild Cognitive Impairment - post Coronary Artery Bypass Graft Surgery (MCI-CABG). During the first stage of the Phase II trial, which was completed in Q1 ‘07, the safety of AL-208 was confirmed in CABG patients at increasing doses. The balance of the Phase II trial is a multi-center, placebo controlled, double blind, parallel-group evaluation of the effectiveness of a single dose of AL-208. The company anticipates enrolling 200 patients in
total and that up to 25 medical centers in the United States and Canada will participate in the trial. Results are expected in H2 ‘07.

Management track record and commitment

Allon’s founders have successfully built other biotechnology companies and its senior management team has an impressive track record developing and commercializing drugs.

The Company’s President and CEO is Gordon McCauley, a co-founder of Neuro Discovery Inc., now NDI Capital, who has led the growth of two Canadian healthcare companies. Allon’s Chairman is Dr. Jim Miller, the founding Chairman and former CEO of two of Canada’s leading biotech companies, QLT Inc. and Inex Pharmaceuticals Corporation. Two other Company directors are also current or former chairmen and CEOs of healthcare companies. The Management and Board hold approximately 20% of Allon’s outstanding common shares.

Allon’s drug research team is led by Professor Illana Gozes, an internationally acclaimed neuroscientist, who is the founder of the Company, its Chief Scientific Officer, and co-inventor of its proprietary technology.

Financial strength

In Q2 2007, the Company completed a $15.0 million bought deal
financing which provides Allon with the working capital to complete
all three Phase II clinical trials the Company currently has underway.

Market

Drugs to treat the symptoms and effects of neurodegenerative diseases represent a rapidly growing global pharma market, at approximately $37 billion in 2005 and are forecasted to reach $41.7 billion in 2009 with the growing number of baby boomers who will be affected by these diseases. Moreover, neuroprotective therapies like Allon’s that protect against the causes of these diseases are becoming a primary focus of both pharmaceutical and biotechnology industries.

Intellectual property protection

Allon is developing a unique class of compounds that protects the
neurons (or brain) against the many causes of neurodegenerative
diseases. Allon holds exclusive license to this broad and well-defined
intellectual property portfolio consisting of 10 different families
including issued composition of matter and use patents.