Businessweek

Zalicus Inc. announced that preclinical data highlighting its novel, oral ion channel programs for the treatment of pain including Z160, an N-type calcium channel blocker and Z944, a T-type calcium channel blocker were presented at the 32nd Annual Scientific Meeting of the American Pain Society taking place May 8-11, 2013 in New Orleans, LA. In a poster presentation entitled "Z160: A potent and state-dependent, small molecule blocker of N-type calcium channels effective in nonclinical models of neuropathic pain," Margaret S. Lee, PhD, Vice President of Research & Translational Medicine at Zalicus, presented preclinical pharmacology data demonstrating that Z160: Potently and selectively blocked N-type channel activity; Provided greater potency at elevated stimulus frequencies, similar to those typical of neurons processing pain signals; Preferentially enhanced the inactivated state, a mechanism distinct from that of other neuropathic pain drugs or N-type blockers; Performed with robust activity across a wide range of preclinical pain models with efficacy similar to currently marketed neuropathic pain drugs and no sedative effects.

Zalicus Inc. reported consolidated unaudited earnings results for the first quarter ended March 31, 2013. For the quarter, total revenue was $3,674,000 against $2,320,000 a year ago. Loss from operations was $7,628,000 against $12,999,000 a year ago. Net loss was $8,047,000 or $0.06 per basic and diluted share against $13,542,000 or $0.13 per basic and diluted share a year ago.

On May 1, 2009, Zalicus Inc. entered into a Research Collaboration and License Agreement with the Novartis Institutes for BioMedical Research, Inc. focused on the discovery of novel anti-cancer combinations using the Zalicus combination high throughput screening, or cHTS, technology platform. The research program under the Collaboration Agreement had an initial two-year term that could be extended by Novartis for three additional one-year periods, and in January 2011, Novartis extended the research program for an additional year, into May 2012. In April 2012, Novartis and Zalicus entered into an Amendment to the Collaboration Agreement, to extend the funded research program under the Collaboration Agreement for an additional year until May 1, 2013 and to modify the basis for up to $3.0 million in funded research payments under the Collaboration Agreement from the funding of Zalicus full-time equivalents to payments based on Zalicus combination screening deliverables. On May 1, 2009, Zalicus and Novartis also entered into a Software License Agreement providing Novartis with a non-exclusive license to use the Zalicus Chalice analyzer software until June 12, 2014. The term of the Software License could be extended by Novartis at its option for three additional five-year periods exercisable upon the payment of additional software licensing fees. On April 30, 2013, Novartis and Zalicus entered into a second amendment to the Collaboration Agreement, to extend the funded research program under the Collaboration Agreement until October 31, 2014 and to continue up to $3.0 million in funded research payments under the Collaboration Agreement based on Zalicus combination screening deliverables. On April 30, 2013, Novartis and Zalicus entered into an amendment to the Software License, to extend the term of the license to the Zalicus Chalice analyzer software until October 31, 2014, and to amend Novartis' option to extend the term of the Software License to a single, one-year option, exercisable upon the payment of amended additional software licensing fees.

The notice of 2013 Annual Meeting of Stockholders of Zalicus Inc. will be held on June 6, 2013, to authorize an amendment to Zalicus’s sixth amended and restated certificate of incorporation to effect a reverse stock split of Zalicus’s issued and outstanding shares of common stock that may be implemented by the Company’s Board of Directors at any time prior to the 2014 annual meeting of stockholders, at its discretion, pursuant to which any whole number of outstanding shares between and including 5 and 10 would be combined and reclassified into one share of Zalicus common stock (such exact amount to be determined by the Zalicus board of directors); and to authorize an amendment to Sixth Amended and Restated Certificate of Incorporation to increase the number of authorized shares of common stock from 200,000,000 to 300,000,000 and authorize Board of Directors to implement the increase in the number of authorized shares at any time prior to the 2014 annual meeting of stockholders by filing an amendment to Sixth Amended and Restated Certificate of Incorporation if Proposal No. 2 (Reverse Stock Split) is not approved by the stockholders or Board of Directors does not implement the reverse stock split described in Proposal No. 2.

On April 18, 2013, Zalicus Inc. received notification from the NASDAQ Listing Qualifications Department of the NASDAQ Stock Market ("NASDAQ") that the Company's application to list its common stock on The NASDAQ Capital Market has been approved, and that the Company's securities will be transferred from The NASDAQ Global Market to The NASDAQ Capital Market at the opening of trading on The NASDAQ Capital Market on April 23, 2013. The NASDAQ Capital Market is a continuous trading market that operates in substantially the same manner as The NASDAQ Global Market. All companies whose securities are listed on The NASDAQ Capital Market must meet certain financial requirements and adhere to NASDAQ's corporate governance standards. The Company's common stock will continue to trade under the symbol "ZLCS". As previously announced, on October 22, 2012, the Company received a deficiency notice from NASDAQ advising the Company that the closing bid price of its common stock had been less than $1.00 per share for more than 30 consecutive business days. Under NASDAQ rules, the Company had 180 days, or until April 22, 2013, to regain compliance by maintaining a minimum closing bid price of at least $1.00 for at least ten consecutive business days. Since the Company would not be able to maintain the minimum closing bid price for at least ten consecutive business days by April 22, 2013, the Company voluntarily applied to transfer the listing of its common stock from the NASDAQ Global Market to the NASDAQ Capital Market. In connection with the transfer of the listing of the Company's common stock to the NASDAQ Capital Market, the Company expects to be granted an additional 180 days, or until October 21, 2013 (the "Compliance Date"), to regain compliance with the minimum bid price rule by maintaining a minimum closing bid price of at least $1.00 for ten consecutive business days.