WEX Pharmaceuticals Inc.
TSX : WXI

WEX Pharmaceuticals Inc.

November 12, 2009 17:08 ET

WEX Reports Second Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 12, 2009) - WEX Pharmaceuticals Inc. ("WEX" or the "Company") (TSX:WXI) reported events and financial results for the three-month and six-month periods ended September 30, 2009. All amounts, unless specified otherwise, are in Canadian dollars.

Second Quarter and Subsequent Events

  • During the quarter, we continued to focus our efforts and resources on our Canadian pivotal trials for TTX in cancer-related pain, TEC-006 and TEC-006OL, enrolling more patients. As of November 12, 2009, the Company has 11 active sites and has enrolled 50 patients in the TEC-006 trial. About 64% of the patients who completed the TEC-006 trial chose to enrol in TEC-006OL.
  • Based on current enrolment rates, the Company now anticipates enrolling the 60 patients required for the planned interim analysis by the first quarter of 2010. The interim analysis will be conducted by an independent data monitoring committee, which will make a recommendation on continuing the trial based on a review of the safety and efficacy assessments. This recommendation is expected to be received within three months of enrolling 60 patients. Assuming that the data monitoring committee recommends that WEX continue the trial to the planned 120 patients, the Company anticipates that the trial will be completed by the end of 2010.
  • As reported on October 18, 2009, Pharmagesic (Holdings) Inc., a wholly-owned subsidiary of CK Life Sciences Int'l., (Holdings) Inc. converted the full principal amount of $15.6 million convertible debenture and all accrued but unpaid interest into restricted voting shares to bring its holdings to 75.25% of the total outstanding restricted voting shares.

Financial Results – Unaudited

For the three months ended September 30, 2009, the Company recorded a loss from continuing operations of $2.05 million ($0.03 per share) compared to a loss of $1.75 million ($0.03 per share) in the same period in the preceding year. The increase in loss from continuing operations of $0.30 million for the three months ended September 30, 2009, when compared to the same period in the preceding year, is largely attributable to the increase in research and development expenses in the pivotal Phase III clinical trial for TEC-006 and TEC-006OL.

For the six months ended September 30, 2009, the Company recorded a loss from continuing operations of $4.13 million ($0.07 per share) compared to a loss of $2.98 million ($0.05 per share) in the same period in the preceding year. The increase in loss from continuing operations of $1.15 million for the six months ended September 30, 2009, when compared to the same period in the preceding year, is attributable to the increase in research and development expenses in TEC-006 and TEC-006OL clinical trials and the increase in interest expense due to higher average principal balance of the convertible debenture.

The Company had cash and short-term investments of $6.83 million as at September 30, 2009 compared to $9.13 million as at March 31, 2009.

For further details, please refer to the unaudited Interim Consolidated Financial Statements and Management's Discussions and Analysis for the three and six month periods ended September 30, 2009 on www.sedar.com.

About WEX Pharmaceuticals Inc.

WEX Pharmaceuticals Inc. is dedicated to the discovery, development, manufacture and commercialization of innovative drug products to treat pain. The Company's principal business strategy is to derive drugs from naturally occurring toxins and develop proprietary products for the global market.

Forward Looking Statements and Information

Certain statements herein may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Forward-looking statements or information appear in a number of places and can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements and information are subject to such risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. See our annual information form and our quarterly and annual management's discussion and analysis for additional information on risks and uncertainties relating to the forward-looking statements and information. There can be no assurance that forward-looking statements or information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond the control of the Company. Accordingly, readers should not place undue reliance on forward-looking statements or information. All forward-looking statements and information made herein, are qualified by this cautionary statement.

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