Full Press Release Details
ADHEREX REPORTS FIRST QUARTER 2006 FINANCIAL RESULTS
Research Triangle Park, NC, May 15, 2006 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, 2006. 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, 2006 was $3.5 million, or $0.08 loss per share, compared to a net loss of $3.1 million, or $0.09 loss per
share, for the three-month period ended March 31, 2005. Operating expenses totaled $3.9 million, an increase of 13% over the same period last year. These operating expenses primarily reflect increased research and development expenditures
related to our expanding clinical trial program for ADH-1 and the initiation of two clinical studies for eniluracil.
Cash, cash equivalents and short-term
investments totaled $10.0 million as of March 31, 2006, compared to $13.1 million as of December 31, 2005, with a corresponding decrease in working capital of $3.0 million. The decreased cash balance reflects spending during the quarter to
fund operations. Subsequent to the quarter end, the Company received approximately $6.5 million in gross proceeds from a private placement offering of securities.
During and subsequent to the quarter ended March 31, 2006, Adherex s accomplishments of note included:
Adherex will host a conference call at 10:00 a.m. ET on Wednesday, May 17, 2006 to review the financial results for the three-month period ended
March 31, 2006 and provide a corporate update. This call will be webcast live via the Internet at www.adherex.com. The event will also be archived and available for telephone replay until midnight on Friday, May 19, 2006 and webcast replay
through May 17, 2007.
Live Participant Dial In (Toll Free, Canadian and US callers): 888-695-0609
Live Participant Dial In (International): (719) 457-2660
Conference Passcode: 4653841
Replay Number (Toll Free): 888-203-1112
Replay Number (International): 719-457-0820
Replay Passcode: 4653841
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 multiple products in the clinical stage of development, including ADH-1 (Exherin ), eniluracil 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. Eniluracil, an oral dihydropyrimidine dehydrogenase (DPD) inhibitor, was previously under
development by GlaxoSmithKline for oncology indications. 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, 2006 | December 31, 2005 | |||||||
| (unaudited) | ||||||||
| Condensed Consolidated Balance Sheets: | ||||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 9,953 | $ | 13,144 | ||||
| Other current and long-term assets | 1,105 | 1,147 | ||||||
| Acquired intellectual property rights | 13,610 | 14,154 | ||||||
| Total assets | $ | 24,668 | $ | 28,445 | ||||
| Liabilities and shareholders equity: | ||||||||
| Accounts payable and accrued liabilities | $ | 2,416 | $ | 2,664 | ||||
| Future income taxes | 4,975 | 5,174 | ||||||
| Other long-term liabilities | 599 | 550 | ||||||
| Total shareholders equity | 16,678 | 20,057 | ||||||
| Total liabilities and shareholders equity | $ | 24,668 | $ | 28,445 | ||||
| Three Months Ended March 31, | ||||||||
| 2006 | 2005 | |||||||
| (unaudited) | (unaudited) | |||||||
| Condensed Consolidated Statements of Operations: | ||||||||
| Operating expenses: | ||||||||
| Research and development | $ | 2,560 | $ | 2,018 | ||||
| General and administration | 747 | 718 | ||||||
| Amortization of acquired intellectual property rights | 544 | 681 | ||||||
| Loss from operations | (3,851 | ) | (3,417 | ) | ||||
| Net interest income | 130 | 49 | ||||||
| Recovery of future income taxes | 199 | 249 | ||||||
| Net loss | $ | (3,522 | ) | $ | (3,119 | ) | ||
| Net loss per share of common stock, basic and diluted | $ | (0.08 | ) | $ | (0.09 | ) |
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 development plans of the Company and the expected timing and results of such development. We can provide no assurance that such development will proceed as currently anticipated or that the expected timing or
results of such development will be realized. We are subject to various risks, including the uncertainties of clinical trials, drug development and regulatory review, other risks inherent in the biopharmaceutical industry, the early stage of our
product candidates, our reliance on collaborative partners, our need for additional capital to fund our operations, 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.