CHAPEL HILL, NORTH CAROLINA--(Marketwire - March 30, 2010) - Adherex Technologies Inc. (TSX: AHX) today reported its financial results for the fiscal year ended December 31, 2009. All amounts are in U.S. dollars.
Financial Update
The net loss for the fiscal year ended December 31, 2009 was $3.0 million, or a loss of $0.02 per share, compared to a net loss of $13.6 million, or a loss of $0.11 per share, in the same period in 2008. Operating expenses totaled $3.3 million, as compared to $13.9 million in the same period in 2008.
Cash and cash equivalents totaled $0.7 million at December 31, 2009, compared to $5.3 million at December 31, 2008. At December 31, 2009, the Company had working capital totaling approximately $0.4 million. The decreased cash balance reflects expenditures used to fund operations and resolve contingent liabilities. The Company believes that it has sufficient capital resources to fund operations into the second quarter of 2010. However, if a strategic transaction or other source of further financial resources cannot be secured in the very near term, we might cease operations sooner.
The selected financial data presented below is derived from our unaudited interim consolidated financial statements which were prepared in accordance with U.S. generally accepted accounting principles. The complete consolidated financial statements for the year ended December 31, 2009 and management's discussion and analysis of financial condition and results of operations will be available via www.sec.gov and www.sedar.com.gov.
Corporate Update
Management continues to evaluate all potential capital raising opportunities for the future development of eniluracil/5-FU. "As a result of our cost cutting measures and elimination of legacy liabilities, we have finally put ourselves in a position to pursue additional capital. We are excited about the new team that we have in place and their passion to move eniluracil/5-FU treatment into the clinic, provided that we are successful in raising the required funds" said Mr. Rosty Raykov, Chief Executive Officer of Adherex.
About Adherex Technologies
Adherex Technologies Inc. is a biopharmaceutical company focused on the development of eniluracil and 5-fluorouaricil.
FINANCIAL CHARTS FOLLOW
Adherex Technologies Inc.
Selected Financial Data
(U.S. dollars in thousands except per share amounts)
Interim Consolidated Balance Sheets: December 31, 2009 December 31, 2008
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Assets:
Cash and cash equivalents $ 685 $ 5,349
Other current assets 148 711
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Total assets $ 833 $ 6,060
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Liabilities and stockholders' equity:
Current liabilities $ 427 $ 2,430
Other long-term liabilities 7 577
Total stockholders' equity 406 3,053
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Total liabilities and stockholders'
equity $ 833 $ 6,060
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Interim Consolidated Statements of
Operations: Year Ended
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December December December
31, 2009 31, 2008 31, 2007
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Revenue $ - $ - $ -
Operating expenses:
Research and development 2,113 10,366 10,912
Impairment of Capital Assets 386 --- ---
Gain on Deferred Lease Inducements (497) --- ---
General and administrative 1,214 3,520 3,278
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Loss from operations (3,216) (13,886) (14,190)
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Other income (expense) 157 - -
Interest income 47 286 833
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Net loss and comprehensive loss $ (3,012) $ (13,600) $ (13,357)
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Basic and diluted net loss per common
share $ (0.02) $ (0.11) $ (0.11)
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This press release contains forward-looking statements that involve significant risks and uncertainties. The actual results, performance or achievements of the Company might differ materially from the results, performance or achievements of the Company expressed or implied by such forward-looking statements. Such forward-looking statements include, without limitation, those regarding our development plans and the expected funding, timing and results of our development as well as our efforts to pursue strategic alternatives. We can provide no assurance that development will proceed as currently anticipated, that previous results will be predictive of future outcomes, that the expected funding, timing or results of our development will be realized, or that we will be able to form strategic collaborations or partnerships with other companies. We are subject to various risks, including our near term need for additional capital to fund our operations, current and anticipated conditions in the economy and financial markets, our history of losses, our ability to continue to meet the listing requirements of the TSX, the uncertainties of clinical trials, drug development and regulatory review, the early stage of our product candidates, our reliance on collaborative partners, and other risks inherent to the biopharmaceutical industry. For a more detailed discussion of related risk factors, please refer to our public filings available at www.sec.gov and www.sedar.com.
Contacts:
Adherex Technologies Inc.
Rosty Raykov
Chief Executive Officer
919-636-5144
