TSX: BMR
TORONTO, May 7 /PRNewswire-FirstCall/ - Bradmer Pharmaceuticals Inc. ("Bradmer" or the "Company") today announced its 2009 first quarter operational and financial results.
Operational Highlights
During the three months ended March 31, 2009, the Company commenced a strategic review of its operations, as more particularly described in news releases of the Company dated February 17, 2009, March 5, 2009, and March 31, 2009. Pursuant to the strategic review, the Company has closed its Phase III GLASS-ART Trial to further patient enrollment, as the completion of initial milestones was projected to fully exhaust the Company's cash resources, while capital market conditions restricted the ability to raise further capital at this time. Subsequent to March 31, 2009, the Company has executed on a cash conservation plan with a reduction of staff and clinical trial related expenses, while continuing to evaluate strategic options.
"Despite our pride in the progress made bringing Neuradiab from a single-site Phase II program to a multicenter Phase III registration trial, this is a time of considerable challenge for our sector," said Alan M. Ezrin, Ph.D., President and Chief Executive Officer of Bradmer. "We continue our strategic evaluation of the future of the Company and ways in which we can achieve our objectives while being extremely attentive to the care of our patients and optimizing downside protection for our shareholders. The Board and Management look forward to sharing this plan with our stakeholders in the immediate near future. Our conservation of capital is evident in our reduced burn in Q1 2009 and will be the central theme of our emerging strategy."
Financial Results
Amounts in US dollars, unless specified otherwise, and results expressed in accordance with Canadian Generally Accepted Accounting Principles (Canadian GAAP).
For the three months ended March 31, 2009, Bradmer recorded a net loss of $2,192,000 or $0.16 per common share, compared to a net loss of $3,157,000 or $0.23 per common share for the three months ended March 31, 2008. The decreased loss in 2009 was primarily related to reduced research and development spending with regard to the Corporation's lead clinical program, Neuradiab, as a result of the decision to close its Phase III GLASS ART Trial to further patient enrollment. As well, during the first quarter of 2009, the Corporation continued to focus on cost reduction opportunities in all areas of the business in response to the credit crisis and the downturn in the economy.
Research and development expenses for the three months ended March 31, 2009 were $1,422,000, compared to $2,268,000 in the same period of 2008. The decrease was primarily due to the absence of manufacturing activity in the period after management made the decision to close clinical trial enrollment. The expenses incurred in the first quarter of 2009 for drug manufacturing contracts and analytical support amounted to $106,000 compared with $1,382,000 in 2008, as we undertook no manufacturing runs in 2009. Amounts expensed to clinical research organizations and consultants were $707,000 in 2009, compared to $556,000 in 2008. Restructuring costs for the severance of six terminated employees were $173,000 in 2009. The Company incurred no severance in the quarter ended March 31, 2008.
General and administrative expenses were $764,000 in the first quarter of 2009 compared to $955,000 in the same quarter of 2008 as a result of the concentration on reducing expenses throughout all departments in the Company. The portion of stock-based compensation, a noncash item, included in general and administrative expenses was $31,000 for the quarter, as compared to $109,000 for the first quarter of 2008. Recruitment fees of $138,000 were incurred to retain a Chief Operating and Medical Officer as well as clinical and manufacturing staff in 2008, whereas no recruiting costs were incurred in 2009.
Interest income decreased to $21,000 from $91,000 in the same period of 2008, due to lower cash balances and significantly lower interest rates.
As at March 31, 2009, Bradmer had available cash of $5,982,000 as compared to cash and cash equivalents of $8,245,000 as at December 31, 2008. The decrease in cash was due primarily to the loss for the quarter. The Company expects that cash on hand at March 31, 2009 will be sufficient to fund the wind down of operations through 2009. We will be reducing funding to the minimum level consistent with our obligations to continue to monitor the progression and safety of the patients enrolled in the trial.
As at March 31, 2009, there were 13,488,215 common shares issued and outstanding.
Additional information about the Company, including the MD&A and financial results may be found on SEDAR at www.sedar.com.
About Bradmer Pharmaceuticals Inc. (www.bradmerpharma.com)
Bradmer Pharmaceuticals' lead clinical candidate, Neuradiab, was developed at Duke University Medical Center as a proprietary therapy for a particularly aggressive form of brain cancer, glioblastoma multiforme. Bradmer initiated enrollment of primary GBM patients in a Phase III multi-center clinical trial of Neuradiab. Neuradiab has been granted Orphan Drug Status by both the U.S. Food and Drug Administration and the European Medicines Agency.
Bradmer Pharmaceuticals Inc.'s common shares have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or any state regulatory agency in the United States. The resale or transfer by a U.S. investor of such common shares of Bradmer Pharmaceuticals Inc. is subject to the requirements of Rule 904 of Regulation S of the Securities Act or such other applicable exemption thereunder, and other applicable state securities laws.
Except for historical information, this press release may contain forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.
CONTACT: Bradmer Pharmaceuticals Inc., Brian Brohman, Chief Business
Officer, Phone: (888) 267-0707 x804, E-mail: bbrohman@bradmerpharma.com,
Internet: www.bradmerpharma.com; Investor Relations: Ross Marshall, The
Equicom Group Inc., Phone: (416) 815-0700 (Ext. 238), Fax: (416) 815-0080,
E-mail: rmarshall@equicomgroup.com
