RESEARCH TRIANGLE PARK, NORTH CAROLINA--(Marketwire - August 14, 2009) - Adherex Technologies Inc. (TSX: AHX), a biopharmaceutical company dedicated to solving problems for patients with cancer, today reported its financial results for the second quarter ended June 30, 2009. All amounts are in U.S. dollars.
Financial Update
The net loss for the three month period ended June 30, 2009 was $0.9 million, or a loss of $0.01 per share, compared to a net loss of $3.4 million, or a loss of $0.03 per share, in the same period in 2008. Operating expenses for the three month period ended June 30, 2009 totaled $0.9 million, as compared to $3.5 million in the same period in 2008.
The net loss for the six month period ended June 30, 2009 was $3.2 million, or a loss of $0.02 per share, compared to a net loss of $7.7 million, or a loss of $0.06 per share, in the same period in 2008. Operating expenses for the six month period ended June 30, 2009 totaled $2.9 million, as compared to $7.9 million in the same period in 2008.
Cash and cash equivalents totaled $1.5 million at June 30, 2009, compared to $5.3 million at December 31, 2008. At June 30, 2009, the Company had working capital totaling approximately $1.0 million. The decreased cash balance reflects expenditures used to fund operations. The Company believes that it has sufficient capital resources to fund operations into December 2009. 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 quarter ended June 30, 2009 and management's discussion and analysis of financial condition and results of operations will be available via our website at www.adherex.com and also at www.sedar.com.gov.
Corporate Update
On July 17, 2009, the Company filed a From 15 with the Securities and Exchange Commission ("SEC") terminating its duty to file reports with the SEC. The Company will continue to file reports with the Canadian provincial securities authorities on the System for Electronic Document and Analysis and Retrieval ("SEDAR").
"I am encouraged with the progress that we have made in a relatively short period of time, as we continue to work toward one goal in mind: how to best maximize the value of our remaining assets, so that we are in a position to execute a revised eniluracil/5-FU study under the leadership of Dr. Spector," 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.
Unaudited Selected Financial Data
(U.S. dollars in thousands except per share amounts)
Interim Consolidated Balance Sheets:
June 30, December 31,
2009 2008
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Assets:
Cash and cash equivalents $1,540 $5,349
Other current assets 159 711
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Total assets $1,699 $6,060
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Liabilities and stockholders' equity:
Current liabilities $745 $2,430
Other long-term liabilities 552 577
Total stockholders' equity 402 3,053
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Total liabilities and stockholders' equity $1,699 $6,060
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Interim Consolidated Statements of Operations:
Three Months Ended Six Months Ended
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June 30, June 30, June 30, June 30,
2009 2008 2009 2008
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Revenue $- $- $- $-
Operating expenses:
Research and
development 650 2,572 1,929 5,947
General and
administrative 311 939 984 2,000
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Loss from operations (961) (3,511) (2,913) (7,947)
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Other income (expense) 22 - (318)
Interest income 1 69 47 201
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Net loss and
comprehensive loss $(938) $(3,442) $(3,184) $(7,746)
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Basic and diluted net
loss per common share $(0.01) $(0.03) $(0.02) $(0.06)
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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.sedar.com.
Contacts:
Adherex Technologies Inc.
Rosty Raykov
Chief Executive Officer
919-536-3105
