Adherex Technologies Reports Third Quarter Results.Business Editors/Health/Medical Writers RESEARCH TRIANGLE PARK Research Triangle Park, research, business, medical, and educational complex situated in central North Carolina. It has an area of 6,900 acres (2,795 hectares) and is 8 × 2 mi (13 × 3 km) in size. Named for the triangle formed by Duke Univ. , N.C. & OTTAWA--(BUSINESS WIRE)--May 26, 2004 Adherex Technologies Inc. (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 products under development, today reported its fiscal year 2004 third quarter and nine-month results for the period ending March 31, 2004. Corporate Update "This was an important quarter for the Company as we continued our evolution to an enterprise focusing on the development of important and innovative approaches to the treatment of cancer," said William Peters, MD, PhD, MBA MBA abbr. Master of Business Administration Noun 1. MBA - a master's degree in business Master in Business, Master in Business Administration , Chairman and Chief Executive Officer of Adherex. "With the completion of the $23.5 million financing in December and the recent $12.4 million "bought deal" and concurrent private placement, we have been able to devote even more energy to drug development." The Company has expanded its corporate operation in Research Triangle Park in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , substantially completing the relocation of its clinical development to its U.S. base. The addition of highly qualified local staff, and a leased office and laboratory space have helped the Company better adapt to its long-term needs. The Company plans to fully occupy its space in North Carolina by August 2004. In March, the U.S. Food and Drug Administration (FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. ) granted Adherex orphan drug orphan drug, drug developed under the U.S. Orphan Drug Act (1983) to treat a disease that affects fewer than 200,000 people in the United States. The orphan drug law offers tax breaks and a seven-year monopoly on drug sales to induce companies to undertake the designation for the use of 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). ) as a chemoprotectant for the prevention of hearing loss in specific cancer indications. "Orphan drug designation was a milestone in our commercialization strategy for STS," Dr. Peters said. "Upon FDA approval of STS for this indication, Adherex would receive seven years of government approved market exclusivity in the US. Also, we believe the receipt of orphan drug designation in the US will provide the launching pad for similar coverage in Europe and potentially for other important cancer indications." Adherex was granted four new US patents, which extended and solidified the Company's scientific leadership in the cadherin area. The Company's refocused Phase I clinical study of Exherin(TM) at the Ottawa Regional Cancer Centre The Regional Cancer Centre(RCC), was established in 1981 by the Government of Kerala and Government of India at Thiruvananthapuram(Trivandrum), the capital of Kerala. The RCC deals with the treatment of Cancer in the states of Kerala, Tamil Nadu and Karnataka. is proceeding well, with Adherex intending to present early results at the annual meeting of the American Society of Clinical Oncology American Society of Clinical Oncology, or ASCO, is an organization that represents all clinical oncologists. Every year, ASCO holds a large symposium where physicians and researchers meet to convey and discuss research and ideas. (ASCO ASCO American Society of Clinical Oncology ASCO Association of Schools and Colleges of Optometry (since 1941; Rockville, Maryland) ASCO Australian Standard Classification of Occupations ASCO Automatic Switch Company ) in New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded in early June. ASCO's annual meeting is the premier oncology educational and scientific event, with last year's conference attracting 26,400 attendees from around the world. Adherex also revised the structure of its Board, its committees, and the policies for corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. in order to better meet the requirements that are expected in the U.S. capital markets. The Company continues to evaluate listing its securities on a U.S. exchange and expects to proceed at a time and in a way that provides the most benefit to our shareholders. "We believe that our drugs have real potential to reduce the burden of cancer. Rapid, clinical development is the highest priority for the Company so that these potential benefits can be realized as soon as possible. Nonetheless, we should not forget that clinical research and development is inherently risky and uncertain, and only careful and well-conducted clinical research will provide the required data to establish the proper role for our drugs. It is our goal to pursue as directly and clearly as possible objective research results that will provide the foundation for regulatory approval, to conduct well-designed clinical trials that will provide evidence to cancer physicians of the new therapeutic opportunities for their patients from our medicines, and ultimately and most importantly, to improve the duration and quality of life for patients with cancer from our innovative approaches," Dr. Peters said. Financial Update The Company's cash and cash equivalents, as at March 31, 2004, was $18.9 million. This compares with cash and cash equivalents of $3.2 million as at June 30, 2003. The overall increase resulted primarily from cash raised in the December equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. . Subsequent to the end of the third quarter, the Company raised approximately $11.7 million in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). through additional equity offerings. Net loss for the quarter was $3.2 million, or $0.02 per share, up from $2.5 million, or $0.03 per share, in the same period last year. This increase was primarily due to an increase of $0.6 million, or 55%, in research and development expenses reflecting the accelerated pace of development activities after the December 2003 financings. Net loss for the nine months ending March 31, 2004 was $8.0 million, or $0.07 per share compared to $5.9 million, or $0.10 per share, during the same period the year before. This increase of $2.1 million reflected higher net amortization expenses for acquired intellectual property of $0.8 million, interest expense on the convertible notes of $0.4 million, and relocation expenses of $0.4 million. The complete financial results for the third quarter ending March 31, 2004 will be available on the Company's website. About Adherex Technologies Adherex Technologies Inc. is a biopharmaceutical company with a broad portfolio of products under development. Four products are in clinical development including Exherin(TM), Adherex's lead cadherin antagonist compound, and Sodium Thiosulfate (STS), a drug that protects against severe hearing loss that is often produced by platinum-based anticancer agents. Adherex's intellectual property includes broad, interlocking interlocking /in·ter·lock·ing/ (-lok´ing) closely joined, as by hooks or dovetails; locking into one another. interlocking Obstetrics A rare complication of vaginal delivery of twins; the 1st protection for cadherin-mediated adhesion and represents what the Company believes to be the world's broadest portfolio of vascular targeting and cell adhesion-inhibiting agents. The Company has offices in Research Triangle Park, North Carolina and Ottawa, Ontario. For more information, please visit Adherex's website at www.adherex.com Adherex Technologies will hold an investor conference call to discuss these results and provide a general corporate update:
Time: 10:30 am Eastern Daylight Time
Wednesday, May 26
Live Call In: 877-407-8035 (Canada and US)
201-689-8035 (International)
Web cast: www.adherex.com
Replay Number: 877-660-6853 (Canada and US)
201-612-7415 (International)
Replay Passcodes (both required for playback):
Account #: 1628
Conference ID #: 106296
Replay available until June 8, 2004 at 11:59 PM or on the Adherex website (www.adherex.com) until August 31, 2004. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Certain information contained in this news release is forward-looking and is 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. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion