Full Press Release Details
ADHEREX REPORTS FIRST QUARTER 2005 FINANCIAL RESULTS
Research Triangle Park, NC, May 10, 2005 Adherex Technologies Inc. (AMEX:ADH,
TSX: AHX), a biopharmaceutical company with a broad portfolio of oncology products under development, today reported its financial results for the first quarter ended March 31, 2005.
As the majority of the Company s operations are now denominated in United States ( U.S. ) dollars, effective January 1, 2005,
Adherex has changed its functional and reporting currency to the U.S. dollar. Unless otherwise indicated, the amounts included in this press release are in U.S. dollars.
The net loss for the three-month period ended March 31, 2005 was $3.1 million, or $0.02 loss per share, compared to a net loss of $2.4
million, or $0.02 loss per share, for the three-month period ended March 31, 2004. Operating expenses totaled $3.4 million, an increase of 27% over the same period last year. These operating expenses primarily reflect increased research and
development expenditures related to the expanding clinical trial program for ADH-1 (ExherinTM), including the
commencement of a Phase Ib/II trial in Europe and costs related to the manufacture of drug substance in preparation for the Phase Ib/II trial in the U.S. and the Phase II trial in Canada.
Cash, cash equivalents and short-term investments totaled $14.7 million as of March 31, 2005, compared to $17.5 million as of December 31,
2004, with a corresponding decrease in working capital of $2.6 million. The decreased cash balance reflects spending during the quarter to fund operations.
During and subsequent to the quarter ended March 31, 2005, Adherex s accomplishments of note included:
I believe Adherex is in a stronger position now than it has ever been, said William P. Peters, MD, PhD, Adherex Chairman and CEO. We have a well
tolerated drug which is displaying encouraging anti-tumor activity and a company with a solid, experienced management team.
Moving forward, our corporate initiatives will include the continued aggressive development of ADH-1, the exploration of potential partnerships or collaborations
with other pharmaceutical and biotechnology companies, the strategic consideration of any promising in-licensing opportunities, and the development of potential opportunities to monetize aspects of our intellectual property estate as a method of
bringing non-dilutive revenue to the company.
Adherex will host a conference call at 10:00 a.m. ET on Thursday, May 19,
2005 to review the financial results for the three-month period ended March 31, 2005. 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 May 24, 2005 and
webcast replay through August 19, 2005.
Live Participant Dial In (Toll Free,
Canadian and US callers): 800-500-0311
Live Participant Dial In (International): 719-457-2698
Conference Passcode: 1748009
Replay Number (Toll Free): 888-203-1112
Replay Number (International): 719-457-0820
Replay Passcode: 1748009
About Adherex Technologies
Adherex Technologies Inc. is a biopharmaceutical company dedicated to the discovery and
development of novel cancer therapeutics. We aim to be a leader in developing innovative treatments that address important unmet medical needs in cancer. We currently have four products in the clinical stage of development, including ADH-1
(Exherin ) and sodium thiosulfate (STS). ADH-1,
our lead biotechnology compound, selectively targets N-cadherin, a protein present on certain tumor cells and established blood vessels that feed solid tumors. STS, a drug from our specialty pharmaceuticals pipeline, protects against the disabling
hearing loss that can often 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 is emerging as a pioneering oncology company. For more information, please visit our website at www.adherex.com.
FINANCIAL CHARTS FOLLOW
Adherex Technologies Inc.
Selected Financial Data
(U.S. dollars in thousands except per share amounts)
| March 31, 2005 | December 31, 2004 | |||||||
| (unaudited) | ||||||||
| Condensed Consolidated Balance Sheets: | ||||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 14,703 | $ | 17,473 | ||||
| Other current and long-term assets | 1,010 | 1,101 | ||||||
| Acquired intellectual property rights | 19,735 | 20,415 | ||||||
| Total assets | $ | 35,448 | $ | 38,989 | ||||
| Liabilities and shareholders equity: | ||||||||
| Accounts payable and accrued liabilities | $ | 1,581 | $ | 1,779 | ||||
| Future income taxes | 7,214 | 7,463 | ||||||
| Other long-term liabilities | 122 | 140 | ||||||
| Total shareholders equity | 26,531 | 29,607 | ||||||
| Total liabilities and shareholders equity | $ | 35,448 | $ | 38,989 | ||||
| Three Months Ended March 31, | ||||||||
| 2005 | 2004 | |||||||
| (unaudited) | (unaudited) | |||||||
| Condensed Consolidated Statements of Operations: | ||||||||
| Operating expenses: | ||||||||
| Research and development | $ | 2,018 | $ | 1,179 | ||||
| General and administration | 718 | 924 | ||||||
| Amortization of acquired intellectual property rights | 681 | 592 | ||||||
| Loss from operations | (3,417 | ) | (2,695 | ) | ||||
| Net interest income | 49 | 88 | ||||||
| Recovery of future income taxes | 249 | 216 | ||||||
| Net loss | $ | (3,119 | ) | $ | (2,391 | ) | ||
| Net loss per share of common stock, basic and diluted | $ | (0.02 | ) | $ | (0.02 | ) |
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 the clinical and preclinical development plans of the Company, both alone and through collaborations, as well as the corporate initiatives we currently have planned. We can provide no assurance that the preclinical or
clinical development plans will proceed as currently anticipated or that our current corporate initiatives will be realized. We are subject to risks inherent in the biopharmaceutical industry, including the early stage of our product candidates, the
uncertainties of clinical trials and regulatory reviews, our reliance on collaborations and our history of losses. For a more detailed discussion of related risk factors, please refer to our public filings available at www.sedar.com and www.sec.gov.
For further information, please contact:
Director, Corporate Communications
Adherex Technologies Inc.