Adherex Technologies Inc. (TSX: AHX), a biopharmaceutical company
dedicated to solving problems for patients with cancer, today
reported its financial results for the fiscal year ended December
31, 2008. All amounts are in U.S. dollars.
Financial Update
The net loss for the fiscal year ended December 31, 2008 was
$13.6 million, or $0.11 loss per share, compared to a net loss of
$13.4 million, or $0.11 loss per share, for the fiscal year ended
December 31, 2007. Operating expenses totaled $13.9 million for the
fiscal year ended December 31, 2008 as compared to $14.2 million
for the fiscal year ended December 31, 2007.
Cash and cash equivalents totaled $5.3 million as of December
31, 2008 compared to $16.2 million as of December 31, 2007, with a
corresponding decrease in working capital of approximately $10.9
million. The decreased cash balance reflects expenditures used to
fund operations. With the implementation of the restructuring
described below, the Company believes that it has sufficient
capital resources to carry out currently planned development and
operational activities into September 2009. However, if a strategic
transaction or other source of further financial resources cannot
be secured in the very near term, the Company might cease
operations sooner than September 2009.
The selected consolidated financial data presented below are
derived from our consolidated financial statements, which were
prepared in accordance with U.S. generally accepted accounting
principles. The complete audited consolidated financial statements
for the year ended December 31, 2008 and management's discussion
and analysis of financial condition and results of operations are
included in our Annual Report filed on Form 10-K, which is
available via our website at www.adherex.com and also at
www.sec.gov.
Corporate Update
In addition to the measures implemented as part of our
prioritization initiative announced on November 12, 2008, the
Company today announced a restructuring to further conserve its
remaining limited financial resources. Given the difficult market
conditions, the Company does not believe that it will be able to
access additional equity capital in the near term on reasonable
terms or at all. This restructuring is intended to further reduce
ongoing expenditures while the Board of Directors reviews its
strategic alternatives, including potential partnership
transactions, mergers, acquisitions and/or the monetizing of
certain assets. At this time, discussions with various companies
interested in potential strategic transactions are ongoing but
because the timeline and likelihood for completion of any potential
strategic alternative is unknown, the Board of Directors believed
it was both prudent and necessary to take these additional
measures. There can be no assurances that any strategic or
financial transaction will be secured, on reasonable terms or at
all. The Company does not plan to make future announcements
regarding the status of the strategic alternatives review unless
there are material developments to report.
The restructuring plan calls for a 75% reduction in headcount
effective April 30, 2009, representing all 13 of the current
non-executive positions at the Company. The four executives of the
Company, namely Dr. William Peters, Chairman & CEO, Mr. James
Klein, Jr., CFO, Dr. Robin Norris, President & COO, and Mr.
Scott Murray, SVP, General Counsel & Secretary, will remain to
assist the Board as necessary in their ongoing search, assessment,
negotiation and implementation of any potential strategic
alternatives. Effective immediately, in addition to the several
other cost containment measures that have been or will be
implemented company-wide, the Company's Board of Directors has
agreed to continue their work for the benefit of shareholders
without further compensation.
"While we have focused the large majority of our recent efforts
on collecting and analyzing recently completed clinical trial data,
reducing costs and attaining additional financial resources, we
have also been able to identify creative, non-dilutive ways to fund
parts of our drug development during these very challenging times,"
said Dr. Peters. "We believe the scientific community is
increasingly appreciating the potential therapeutic impact of our
product candidates. STS is in Phase III trials. ADH-1 was recently
the subject of a plenary session presentation at the Society of
Surgical Oncology meeting in Phoenix, AZ and new data will be
presented at ASCO. The National Cancer Institute, or NCI, has
recently confirmed their intention to support further clinical
trials with ADH-1 in multiple cancer indications and we are working
with the NCI to launch the first of these trials as quickly as
possible. Finally, we continue to explore a number of
investigator-initiated approaches for the continued scientific and
clinical advancement of our products."
The Company's development programs currently consist of:
- The ongoing investigator-initiated Phase I randomized trial of
topical eniluracil intended to prevent hand-foot syndrome in
patients taking Xeloda�, and
- The ongoing Phase III trials of sodium thiosulfate (STS) with
the International Childhood Liver Tumour Strategy Group, also known
as SIOPEL, and the Children's Oncology Group, or COG. Both the
SIOPEL and COG studies are exploring the safety and efficacy of STS
as a hearing protectant in children during platinum-based
chemotherapy.
We expect to have early proof-of-concept data from the topical
eniluracil program by approximately mid-2009. The Company has also
completed the initial 3-month follow-up on all 51 patients enrolled
in the Phase I/IIB ADH-1 trial in combination with regional
melphalan for the treatment of in-transit melanoma. Analysis of the
data is ongoing and complete results are expected to be presented
at the ASCO annual meeting in June 2009.
Annual General Meeting of Shareholders
Adherex also announced that it will hold its Annual General
Meeting of Shareholders on Tuesday, May 19, 2009 at 3 p.m. ET at
the Toronto Board of Trade, Ketchum Osgoode Room, 3rd Floor, 1
First Canadian Place, Toronto, Ontario.
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. For more information, please
visit our website at www.adherex.com.
Adherex Technologies Inc.
Selected Financial Data
(U.S. dollars and shares in thousands except per share amounts)
December 31, December 31,
2008 2007
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Condensed Consolidated Balance Sheets:
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Assets:
Cash and cash equivalents $5,349 $16,162
Other current and long-term assets 711 1,047
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Total Assets $6,060 $17,209
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Liabilities and stockholders' equity:
Accounts payable and accrued liabilities $2,430 $2,362
Other current and long-term liabilities 577 699
Total stockholders' equity 3,053 14,148
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Total liabilities and stockholders' equity $6,060 $17,209
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Condensed Consolidated Statements Year Ended Year Ended Year Ended
of Operations: December December December
31, 31, 31,
2008 2007 2006
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Revenue $- $- $-
Operating expenses:
Research and development 10,366 10,912 14,003
General and administration 3,520 3,278 2,883
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(Loss from operations) (13,886) (14,190) (16,886)
Other income (expense):
Interest expense - - (3)
Interest income 286 833 449
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Total other income 286 833 446
Loss before income taxes (13,600) (13,357) (16,440)
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Net loss and total comprehensive
income $(13,600) $(13,357) $(16,440)
--------------------------------------------------------------------------
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Net loss per share of common stock,
basic and diluted $(0.11) $(0.11) $(0.34)
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Weighted-average number of shares of
common stock outstanding, basic
and diluted 128,227 116,571 47,663
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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 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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