Adherex Reports First Quarter 2005 Financial Results.RESEARCH TRIANGLE, N.C. -- Adherex Technologies Inc. (AMEX AMEX See: American Stock Exchange :ADH ADH: see antidiuretic hormone. ) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :AHX AHX American History X (movie) AHX Abyss' Highest eXperience ), a biopharmaceutical company with a broad portfolio of oncology oncology /on·col·o·gy/ (ong-kol´ah-je) the sum of knowledge regarding tumors; the study of tumors. on·col·o·gy n. products under development, today reported its financial results for the quarter ended September 30, 2004. "This quarter, we continued to advance our clinical and preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. compounds through development, expanded our senior management team and laid the groundwork to increase our presence in the U.S.," said Dr. William Peters, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We have made solid progress with our listing on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. and the evidence of anti-tumor activity seen in our Phase I trial of Exherin(TM). It is our challenge to further this progress and continue to build shareholder value." Financial Update The net loss for the three-month period ended September 30, 2004 was $3.6 million, or $0.02 loss per share, compared to a net loss of $2.1 million, or $0.03 loss per share, for the same period in 2003. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. totaled $4.0 million, an increase of 80% over the same period last year. These operational expenses primarily reflect increased R&D expenditures related to the clinical development of Exherin(TM) and the hiring of R&D personnel to support increased product development activities, as well as increased G&A expenses related to the Company's relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of its executive offices to the U.S. Cash, cash equivalents and short-term investments totaled $24.8 million as of September 30, 2004 compared to $27.7 million as of June 30, 2004, with a corresponding decrease in working capital of $2.8 million. The decreased cash balance reflects spending during the quarter to fund operations. Corporate Update During and subsequent to the quarter ended September 30, 2004, Adherex achieved the following strategic, clinical and operational milestones: - The Company's Registration Statement on Form 20-F was declared effective by the U.S. Securities and Exchange Commission (SEC) and its application to list its shares on the American Stock Exchange (AMEX) was approved. The U.S. listing will provide Adherex with much broader access to the investment community and should better position the Company for future initiatives, including partnering discussions. - The Company reported updated clinical results for its Phase I trial of the molecularly targeted anti-cancer drug Exherin(TM), indicating that Exherin(TM) has been generally well tolerated and has shown evidence of anti-tumor activity in three patients, including one "partial response." These results underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. the therapeutic potential of Exherin(TM) and support our approach of developing the drug as a molecularly targeted therapy. - The Company further expanded its executive team, adding Dr. Brian Huber as Chief Scientific Officer. Dr. Huber brings more than 20 years of research and management experience in major pharmaceutical companies to Adherex. He was most recently Vice President of Biology/Pharmacology in Drug Discovery for GlaxoSmithKline. - Adherex further strengthened its patent portfolio with the issuance of three new U.S. patents, which included claims directed to the use of the Company's proprietary cancer therapeutic agents to improve drug delivery to tumors, to decrease the size of tumors, and for enhancing or inhibiting cadherin-mediated adhesion adhesion /ad·he·sion/ (ad-he´zhun) 1. the property of remaining in close proximity. 2. the stable joining of parts to one another, which may occur abnormally. 3. . Conference Call Adherex will host a conference call at 10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy on Tuesday, November 16, 2004 to review the financial results for the quarter ended September 30, 2004. This call will be webcast live via the Internet at www.adherex.com. The event will also be archived and available for telephone replay through November 20, 2004 and webcast replay through February 15, 2005. Live Participant Dial In (Toll Free, Canadian and US callers): 800-214-0694 Live Participant Dial In (International): 719-955-1425 Conference Passcode: 673386 Replay Number (Toll Free): 888-348-4629 Replay Number (International): 719-884-8882 Replay Passcode: 673386 About Adherex Technologies Adherex Technologies Inc. is a biopharmaceutical company dedicated to the discovery and development of novel cancer therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. . We aim to be a leader in developing innovative treatments that address important unmet un·met adj. Not satisfied or fulfilled: unmet demands. medical needs in cancer. We currently have four products in the clinical stage of development including Exherin(TM) and sodium thiosulfate sodium thiosulfate, Na2S2O3, colorless crystalline compound that is more familiar as the pentahydrate, Na2S2O3·5H2 (STS (Synchronous Transport Signal) The electrical equivalent of the SONET optical signal. In SDH, the European counterpart of SONET, STS is known as STM (Synchronous Transport Module). ). Exherin(TM), our lead biotechnology compound, is an angiolytic that selectively targets established blood vessels Blood vessels Tubular channels for blood transport, of which there are three principal types: arteries, capillaries, and veins. Only the larger arteries and veins in the body bear distinct names. that feed solid tumors. STS, a drug from our specialty pharmaceuticals pipeline, protects against the disabling dis·a·ble tr.v. dis·a·bled, dis·a·bling, dis·a·bles 1. To deprive of capability or effectiveness, especially to impair the physical abilities of. 2. Law To render legally disqualified. hearing loss that can often result from treatment with platinum-based chemotherapy drugs. With a diversified diversified (di·verˑ·s portfolio of unique preclinical and clinical-stage cancer compounds and a management team with expertise in identifying, developing and commercializing novel cancer therapeutics, Adherex is emerging as a pioneering oncology company. For more information, please visit Adherex' website at www.adherex.com.
Adherex Technologies Inc.
Selected Financial Data
(unaudited)
(Canadian dollars in thousands except per share amounts)
September 30, June 30,
2004 2004
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Condensed Consolidated Balance Sheets:
Assets:
Cash, cash equivalents and
short-term investments $ 24,814 $ 27,748
Other current and long-term assets 1,679 1,759
Acquired intellectual property rights 25,352 26,132
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Total assets $ 51,845 $ 55,639
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Liabilities and shareholders' equity:
Accounts payable and accrued liabilities $ 1,734 $ 1,966
Other current and long-term liabilities 107 124
Future income taxes 9,267 9,552
Common stock 48,343 48,343
Contributed surplus 32,112 29,639
Deficit accumulated during development stage (39,718) (33,985)
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Total liabilities and shareholders' equity $ 51,845 $ 55,639
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Three Months Ended September 30,
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2004 2003
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Condensed Consolidated Statements of Operations:
Operating expenses:
Research and development $ 1,620 $ 830
General and administration 1,579 602
Amortization of acquired intellectual
property rights 780 780
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Loss from operations (3,979) (2,212)
Interest income (expense) - net 92 (206)
Recovery of future income taxes 285 285
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Net loss $ (3,602) $ (2,133)
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Net loss per share, basic and diluted $ (0.02) $ (0.03)
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Certain statements contained in this press release are forward-looking and are subject to unknown risks and uncertainties. The actual results, performance or achievements of the Company may differ materially from the results, performance or achievements of the Company expressed or implied by such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Such forward looking statements include, without limitation, those regarding the therapeutic potential of Exherin(TM), our challenge to further our progress in the development of our product candidates and the advantages an AMEX listing may provide with respect to access to the investment community and our positioning for future initiatives, such as partnering opportunities. We can provide no assurance that we will achieve any such results on schedule, or at all, or that such a listing will provide anticipated advantages. |
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