Akela Pharma reports financial results for the year ended 2011

Akela Pharma reports financial results for the year ended 2011

AUSTIN, TX, March 31, 2012 /PRNewswire/ - Akela Pharma, Inc. ("Akela"), (TSX: AKL), an industry leader in providing pharmaceutical contract dosage development and clinical and FDA commercial manufacturing, today announced its financial results for year ended December 31, 2011.

Total consolidated revenues for the year ended December 31, 2011 were $26.2 million, including $10.3 million in contract services, as compared to $13.3 million, including $10.2 million in contract services, for 2010.

Consolidated net income for the twelve months ended December 31, 2011 was $13.9 million or $0.43 per share, versus $1.4 million or $.05 per share, for the same respective period in 2010.

Excluding one-time items, Akela's consolidated net loss for the twelve months ended December 31, 2011 was ($0.5) million, versus a $2.1 million profit for the same period in 2010.

The Company had a cash balance of $0.1 million as of December 31, 2011 compared with $0.5 million as of December 31, 2010.

Further to the March 14, 2012 press release of Akela's CEO transition, Gregory McKee has resigned his position as member of the Board of Directors of Akela Pharma, Inc.

About Akela Pharma Inc.

Through PharmaForm, Akela's wholly owned subsidiary is a leading specialty contract service provider in the area of pharmaceutical dosage form development, preclinical, GMP clinical and FDA commercial manufacturing, specializing in controlled release and bioavailability enhancement technologies, such as hot melt extrusion, spray drying, and liquid filled capsules. Through its diverse offerings, PharmaForm solutions help pharmaceutical and biotechnology clients reach their development targets, reduce development costs and accelerate time-to-market.

Akela's common shares trade on The Toronto Stock Exchange ("TSX") under the symbol "AKL" with 32.4 million shares outstanding.

This press release contains statements which may constitute forward-looking information under applicable Canadian securities legislation. Such forward-looking statements or information may include financial and other projections as well as statements regarding the company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the company's underlying assumptions.

The words "may", "would", "could", "will", "likely", "expect", anticipate", "intend", "plan", "forecast", "project", "estimate" and "believe" or other similar words and phrases may identify forward-looking statements or information. Persons reading this press release are cautioned that such statements or information are only expectations, and that the company's actual future results or performance may be materially different. Such forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause our actual results, and other factors as described in detailed in a complete in our filings with Canadian securities regulatory authorities, filed on SEDAR at http://www.sedar.com.

All forward-looking statements and information made herein are based on our current expectations as of the date hereof and we disclaim any intention or obligation to revise or update such forward-looking statements and information to reflect subsequent events or circumstances, except as required by law.

AKELA PHARMA INC.
Consolidated Statements of Financial Position
as at December 31, 2011, December 31, 2010 and January 1, 2010
(In thousands of US dollars, except share and per share data)

				As at December 31, 2011			As at December 31, 2010			As at January 1, 2010
Assets
Current assets:
	Cash		$	57		$	474		$	107
	Restricted cash			-			-			938
	Accounts receivable			1,432			1,590			1,679
	Prepaid expenses and other current assets			279			302			417
	Total current assets:			1,768			2,366			3,141
Non-current assets:
	Property and equipment (Note 8)			2,249			3,085			4,165
	Intangible assets (Note 9)			30			74			52
	Other non-current assets			120			67			598
	Total non-current assets:			2,399			3,226			4,815
			$	4,167		$	5,592		$	7,956
Liabilities and Shareholders' Deficiency
Current liabilities:
	Accounts payable and accrued liabilities		$	6,250		$	5,709		$	7,961
	Deferred revenue (Note 13)			287			3,527			2,795
	Income tax payable (Note 14)			154			266			-
	Embedded derivatives (Note 7)			-			-			187
	Current portion of long-term debt (Note 11)			2,513			1,037			1,015
	Total current liabilities			9,204			10,539			11,958
Non-current liabilites
	Deferred revenue (Note 13)			-			12,979			14,630
	Long-term debt (Note 11)			5,322			6,443			6,615
	Deferred income tax liabilities (Note 14)			-			-			799
	Total non-current liabilities			5,322			19,422			22,044
Shareholders' deficiency:
	Common shares			67,739			67,739			67,544
	Additional paid-in capital			8,514			8,441			8,380
	Deficit			(86,612)			(100,549)			(101,970)
	Total shareholders' deficiency			(10,359)			(24,369)			(26,046)
Commitments, contingencies and guarantees
			$	4,167		$	5,592		$	7,956

The accompanying notes are an integral part of these consolidated financial statements.

Approved by the Board:

Robert Rieder (signed), Chairman of the Board

Gordon Busenbark, (signed), Chairman of the Audit Committee

AKELA PHARMA INC.
Consolidated Statements of Income and Comprehensive Income
For the years ended December 31, 2011 and 2010
(In thousands of US dollars, except share and per share data)

					Year Ended
					December 31,
					2011			2010
Revenues (Note 13, 2(p))				$	26,213		$	13,302
Expenses:
		Direct costs			5,575			5,446
		Selling, general and administrative			5,191			4,953
		Research and development			242			118
		Stock-based compensation (Note 12b)			73			61
		Amortization of property and equipment (Note 8)			883			1,437
		Amortization of intangible assets (Note 9)			44			58
		Interest on long-term debt (Note 11)			723			1,090
		Loss on securities held for trading			-			78
		Foreign exchange gain			(298)			(466)
		Decrease in fair value of embedded derivative liability			-			(187)
		Total expenses			12,433			12,588
Income before income taxes					13,780			714
Income Tax Provision					(157)			707
Total Income and Comprehensive Income					13,937			1,421
Earnings per share
Basic net income per share					0.43			0.05
	Diluted net income per share			$	0.42		$	0.04
Basic weighted average number of shares outstanding (Note 12d)					32,390,338			31,535,338
	Diluted weighted average number of shares outstanding (Note 12e)				33,108,453			31,589,088

The accompanying notes are an integral part of these consolidated financial statements.

AKELA PHARMA INC.
Consolidated Statements of Changes in Shareholders' Deficiency
For the years ended December 31, 2011 and 2010
(In thousands of US dollars, except share and per share data)

		Common Shares						Additional
		Number			Dollars			Paid in Capital			Deficit			Total
Balance, January 1, 2010		30,890,338		$	67,544		$	8,380		$	(101,970)		$	(26,046)
Contributions by and distribution to owners.
	Stock-based compensation (Note 12b)	-			-			61			-			61
	Lease termination (Note 6)	1,250,000			160			-			-			160
	Ingalls & Snyder line of credit	250,000			35			-			-			35
Total comprehensive income		-			-			-			1,421			1,421
Balance, December 31, 2010		32,390,338		$	67,739		$	8,441		$	(100,549)		$	(24,369)
Transactions with owners, recorded directly in the equity.
Contributions by and distribution to owners.
	Stock based compensation (Note 12b)	-			-			73			-			73
Total comprehensive income		-			-			-			13,937			13,937
Balance, December 31, 2011		32,390,338		$	67,739		$	8,514		$	(86,612)		$	(10,359)

The accompanying notes are an integral part of these consolidated financial statements

SOURCE AKELA PHARMA INC.

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