Full Press Release Details
Pharmaceuticals Announces Fourth Quarter and
Reduction in Cash Used in Operations
Arbor, Michigan, March 31, 2009 -- Adeona Pharmaceuticals, Inc. (AMEX: AEN), a
specialty pharmaceutical company dedicated to the awareness, prevention and
treatment of subclinical zinc deficiency and chronic copper toxicity in the
mature population, today announced its results for its fourth quarter and year
ended December 31, 2008.
conference call has been scheduled for 12:00noon EST on Wednesday April 1,
2009. In order to participate in the conference call, please call
toll free: (888) 487-0354 and
international dial-in: (719) 457-2694 passcode 8404742. A replay of
the conference call will be archived for at least 15 days on Adeona's website at
quarter and recent highlights included:
29, 2009, Mr. Stergis, a resident of Coral Gables, FL resigned the position as
Chief Executive Officer and remains the Company's Vice Chairman of the
Board. Mr. Kanzer, a resident of Ann Arbor, MI and Chairman of the
Board, has assumed the additional role of Chief Executive Officer and President
Kanzer, CPA, JD, Chairman of the Board, President & Chief Executive Officer
of Adeona, commented, "During the fourth quarter, the company continued to
reduce expenses permitting us the opportunity to now pursue our near-term
product opportunities," said Mr. Kanzer. "Having ended the year with
approximately $5.8 million in cash and a substantially
burn rate, the board of directors is extremely grateful for the efforts of
Nicholas Stergis and recognize the significant personal sacrifices he made to be
away from his family while working on behalf of the company here in Ann
Stergis, co-founder & Vice Chairman of the Board commented, "During my ten
month tenure, I am proud of my many accomplishments as CEO for which I led the
restructuring of our operations including a 70% reduction in operating expenses,
resulting in a preservation of working capital during a critical time of the
Company's development. I leave our management team with a strong
balance sheet, extremely low burn rate and many late stage development programs
with non-dilutive grant funding totaling over $5 million."
Results for Fourth Quarter and Year End 2008
loss applicable to common shareholders for the quarter ended December 31, 2008
was $915,150, or $0.04 per share as compared to a net loss applicable to common
shareholders of $3,159,553 or $0.23 per share for the quarter ending December
31, 2007. Of the net loss applicable to common stockholders for the fourth
quarter of 2008, $487,315 was attributable to research and development expenses
and $432,781 was attributable to general and administrative
loss applicable to common shareholders for the year ended December 31, 2008 was
$7,205,158, or $0.35 per share, compared to a net loss applicable to common
shareholders of $22,302,155, or $1.27 per share, for the comparable period in
2007, representing a decrease of $15,096,997. The decrease is
primarily attributable to a non-cash charge of $12,409,722 taken during the
first quarter of 2007 related to the acquisition of Effective Pharmaceuticals,
Inc. The total of the non-cash charge was reflected through equal and
offsetting adjustments to additional paid-in-capital with no net impact on
stockholders' equity. Research and development expenses decreased by
$1,684,156 for the year ended December 31, 2008 as compared to the same period
last year. The decrease relates to a decrease in salaries and payroll taxes of
approximately $739,000, a decrease of approximately $684,000 associated with
payments related to further the development of our licensed clinical drug
candidates and a decrease in stock based compensation charges of approximately
$214,000. General and administrative expenses decreased by $1,134,949 for the
year ended December 31, 2008 as compared to the same period in 2007 which is
primarily due to a decrease in stock-based compensation expense of approximately
$952,000 and a decrease in salaries and payroll taxes of approximately
December 31, 2008, Adeona had cash of approximately $5.9 million, compared to
approximately $11.5 million at December 31, 2007. The decrease of approximately
$5.6 million during 2008 is attributable to net cash used in operations of
approximately $4.9 million, and $900,000 that Adeona elected to use to repay its
outstanding equipment notes payable in full. Cash utilized in operations for the
quarter ended December 31, 2008 was approximately $770,000, which was
attributable to net cash used in operations.
Company implemented significant downsizing and cost saving measures announced
March 11, 2008 in order to preserve our capital. The Company
is able to realize the effects of the cost
measures through a decrease in operating expense of $2.2 million or 71% and a
decrease in cash used in operations of approximately $1.1 million or 61% as
compared to the first quarter of 2008 when the cost reductions were
Adeona Pharmaceuticals, Inc.
Pharmaceuticals, Inc. (AMEX: AEN) is a specialty pharmaceutical company
dedicated to the awareness, prevention and treatment of subclinical zinc
deficiency and chronic copper toxicity in the mature population. Adeona believes
that such conditions may contribute to the progression of important degenerative
diseases, including, dry age-related macular degeneration (dry AMD), Alzheimer's
disease (AD) and mild cognitive impairment (MCI) in susceptible
persons. Adeona is also developing a number of late-stage clinical
drug candidates for the treatment of rheumatoid arthritis and multiple
sclerosis. For further information, please visit, www.adeonapharma.com.
release includes forward-looking statements on Adeona's current expectations and
projections about future events. In some cases forward-looking
statements can be identified by terminology such as "may," "should,"
"potential," "continue," "expects," "anticipates," "intends," "plans,"
"believes," "estimates," and similar expressions. These statements are based
upon current beliefs, expectations and assumptions and are subject to a number
of risks and uncertainties, many of which are difficult to predict and include
statements regarding designing additional clinical trials for oral dnaJP1,
Zinthionein, flupirtine, or Trimesta. Adeona is at an early stage of development
and may not ever have any products that generate significant revenue. Important
factors that could cause actual results to differ materially from those
reflected in Adeona's forward-looking statements include, among others, a
failure of Adeona's product candidates to be demonstrably safe and effective, a
failure to obtain regulatory approval for the company's products or to comply
with ongoing regulatory requirements, regulatory limitations relating to the
company's ability promote or commercialize its products for awareness,
prevention, diagnosis or treatment of subclinical zinc deficiency and chronic
copper toxicity, to a lack of acceptance of Adeona's product candidates in the
marketplace, a failure of the company to become or remain profitable, Adeona's