Adherex Technologies Inc. (TSX: AHX)(AMEX: ADH), a
biopharmaceutical company dedicated to solving problems for
patients with cancer, today reported its financial results for the
third quarter ended September 30, 2008. All amounts are in U.S.
dollars.
Financial Update
The net loss for the three month period ended September 30, 2008
was $3.2 million, or a loss of $0.03 per share, compared to a net
loss of $3.2 million, or a loss of $0.02 per share, in the same
period in 2007. Operating expenses for the three month period ended
September 30, 2008 totaled $3.3 million as compared to $3.5 million
in the same period in 2007.
The net loss for the nine-month period ended September 30, 2008
was $11.0 million, or a loss of $0.09 per share, compared to a net
loss of $10.3 million, or a loss of $0.09 per share, for the same
period in 2007.
Cash and cash equivalents totaled $7.9 million as of September
30, 2008, compared to $16.2 million at December 31, 2007, with a
corresponding decrease in working capital of $8.9 million. The
decreased cash balance reflects expenditures used to fund
operations. With the implementation of the prioritization
initiative as outlined below, the Company believes that it has
sufficient capital resources to carry out currently planned
development and operational activities through September 30,
2009.
Corporate Update
Adherex also announced that it has implemented a prioritization
initiative to focus its clinical development activities on the most
attractive, nearer term value-generating opportunities.
Accordingly, the Company has begun a process of postponing or, in
certain cases, terminating some of its ongoing or previously
planned clinical development programs. This process included the
closure of enrollment in the Phase 1/2 trial for eniluracil in
liver cancer in Asia. This trial had enrolled a total of nine
patients. Further, patient enrollment in the ongoing U.S. Phase I
trial of eniluracil intended to determine the maximum tolerated
dose (MTD) of oral 5-fluorouracil (5-FU) in combination with
eniluracil will be temporarily suspended. A total of 41 patients
have been enrolled in this trial to date. Finally, plans to start a
Phase 2 trial with eniluracil in breast cancer, a Phase 3 trial
with ADH-1 in combination with melphalan in melanoma and a Phase 3
trial with sodium thiosulfate (STS) in adult head and neck cancer
in the United States have all been indefinitely postponed pending
the establishment of a partnership for these products or other
sufficient funding activity.
"While our drug development has been proceeding well and we
believe that there is substantial opportunity for each of the
products, the current market conditions dictate that we focus and
align our development strategy with the financial resources that we
currently have available. By streamlining our activities and
utilizing creative development approaches, we expect to extend our
current cash resources and maximize our opportunity to create
nearer term value-enhancing data while continuing to seek
partnerships or other funding opportunities for our products," said
Dr. William P. Peters, Chairman and CEO of Adherex.
"Although we have had to make some logical and prudent decisions
to slow down or stop some of our development programs, the addition
of a number of investigator-initiated trials will help ensure the
continued advancement of our products and may even provide for a
nearer term product opportunity. For example, the
investigator-initiated approach using a topical eniluracil
formulation has already produced preclinical data demonstrating the
feasibility of such a strategy," said Dr. Peters. "If successful,
this topical approach would address a significant clinical need in
oncology and represents a novel and substantially abbreviated
development path."
The current development plans thus now include:
- Continuation of the ongoing Phase 3 trials of STS with COG and
SIOPEL which we believe will provide efficacy data necessary for
potential early approval strategies.
- Completion of the ongoing Phase 2b trial of ADH-1 in
combination with melphalan for melanoma. This trial has accrued 47
patients to date and will complete patient accrual at the end of
November. Patients will then be followed for the required three
months for response assessment. This information will provide an
expanded Phase 2b clinical data set to further potential partnering
opportunities.
- The addition of an investigator-initiated clinical trial where
eniluracil is being studied topically for the prevention of
hand-foot syndrome (HFS) induced by capecitabine (Xeloda�). This
approach provides a relatively cost-effect and rapid development
strategy with near-term efficacy data possible.
- The addition of investigator-initiated clinical trials with
ADH-1 in lung and pancreatic cancer in combination with
chemotherapy and other biologic therapies, further expanding the
potential applications for this drug.
The selected financial data presented below are derived from the
Company's interim unaudited consolidated financial statements for
the period ended September 30, 2008 included in its Quarterly
Report on Form 10-Q, which is available on the Company's website at
www.adherex.com and also at www.sec.gov.
About Adherex Technologies
Adherex Technologies Inc. is a biopharmaceutical company
dedicated to the discovery and development of novel cancer
therapeutics. We are in the business of solving problems for
patients with cancer. We have multiple products in the clinical
stage of development, including eniluracil, ADH-1 and sodium
thiosulfate (STS). Eniluracil, an oral dihydropyrimidine
dehydrogenase (DPD) inhibitor, is being developed to improve the
tolerability and effectiveness of 5-fluorouracil (5-FU), one of the
most widely used oncology drugs in the world. ADH-1 is a
biotechnology compound which selectively targets N-cadherin, a
protein present on certain tumor cells and the blood vessels of
solid tumors. STS is a chemoprotectant being developed to reduce or
prevent hearing loss that may result from treatment with
platinum-based chemotherapy drugs. With a diversified portfolio of
unique preclinical and clinical-stage cancer compounds and a
management team with expertise in identifying, developing and
commercializing novel cancer therapeutics, Adherex aims to become a
leader in developing innovative treatments that address important
unmet medical needs in cancer. For more information, please visit
our website at www.adherex.com.
FINANCIAL CHARTS FOLLOW
Adherex Technologies Inc.
Unaudited Selected Financial Data
(U.S. dollars in thousands except per share amounts)
September 30, December 31,
Condensed Consolidated Balance Sheets: 2008 2007
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Assets:
Cash and cash equivalents $7,937 $16,217
Other current assets 264 344
Long-term assets 457 648
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Total assets $8,658 $17,209
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Liabilities and stockholders' equity:
Accounts payable and accrued liabilities $2,904 $2,402
Other long-term liabilities 600 659
Total stockholders' equity 5,154 14,148
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Total liabilities and stockholders' equity $8,658 $17,209
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Condensed Consolidated Statements of Operations:
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
2008 2007 2008 2007
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Revenue $- $- $- $-
Operating expenses:
Research and
development 2,821 2,490 8,768 8,293
General and
administrative 478 966 2,478 2,717
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Loss from operations (3,299) (3,456) (11,246) (11,010)
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Interest income 55 254 256 661
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Net loss $(3,244) $(3,202) $(10,990) $(10,349)
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Basic and diluted
net loss per common
share $(0.03) $(0.02) $(0.09) $(0.09)
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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
collaborations or partnerships. 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 collaborations or partnerships with
other companies. We are subject to various risks, including our
need for additional capital to fund our operations, our history of
losses, current and anticipated conditions in the economy and
financial markets, our ability to continue to meet the listing
requirements of either the AMEX or 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 and
www.sec.gov.
Contacts: Adherex Technologies Inc. D. Scott Murray Senior Vice
President, Corporate Development 919-484-8484 info@adherex.com
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