WEX Pharmaceuticals Inc.

WEX Pharmaceuticals Inc.

February 12, 2010 18:05 ET

WEX Reports Year End Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 12, 2010) - WEX Pharmaceuticals Inc. ("WEX" or the "Company") (TSX:WXI) reported major events and financial results for the nine-month period ended December 31, 2009. The Company filed a notice regarding its change of financial year-end from March 31 to December 31, effective from December 31, 2009. With the change occurring this year, the Company has filed audited consolidated financial statements and Management's Discussion and Analysis for the transitional nine-month period ending December 31, 2009. All amounts, unless specified otherwise, are in Canadian dollars.

Major Events

  • On October 18, 2009, after serving due notice, Pharmagesic (Holdings) Inc., an indirect wholly-owned subsidiary of CK Life Sciences Int'l (Holdings) Inc. ("CKLS") converted the full $15,600,000 convertible debenture. As a result of this conversion, CKLS beneficially acquired 110,696,865 restricted voting shares at a price of $0.1409 per share. In addition, CKLS also acquired 6,155,197 restricted voting shares at an average price of $0.2083 per share in lieu of $1,281,913 accrued but unpaid interest on the amount outstanding under the debenture from its original date of issue to the conversion date.
  • On January 26, 2010, WEX announced that it closed a fully-subscribed Rights Offering and that it will issue in total 265,483,177 restricted voting shares for gross proceeds of approximately $34.5 million. Pursuant to the Rights Offering, Pharmagesic (Holdings) Inc. acquired 259,241,700 restricted voting shares, bringing its total shareholdings to 392,421,034 restricted voting shares or 88.7% of the total issued and outstanding restricted voting shares.
  • During the nine-month period ended December 31, 2009, the Company continued to focus its efforts and resources on the Canadian pivotal trials for TTX, TEC-006 and TEC-006OL. As of February 12, 2010, the Company has 11 active sites and has enrolled 60 patients in the TEC-006 trial. About 62% 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 evaluable patients required for the planned interim analysis by the end of 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 during the third quarter of 2010. Assuming that the data monitoring committee recommends that WEX continue the trial to the planned 120 evaluable patients, the Company anticipates that patient enrolment will be completed in the first half of 2011.
  • On February 9, 2010 the Company's board of directors mandated management to assess the merits of potentially transferring its facilities involved in the production of TTX, which are located in Nanning, China, to a contract manufacturing outsourcer. Management expects to finalize the assessment of this possible transfer and its accounting implications for the Company during fiscal year 2010.

Financial Results

For the nine-month period ended December 31, 2009, the Company recorded a net loss of $5.83 million ($0.06 per share) compared to a net loss of $5.49 million ($0.09 per share) for the comparable nine-month period ended December 31, 2008. The increase in net loss is mainly due to increase in research and development expenditures and increase in interest expense on convertible debenture resulting from carrying higher average principal balance.

The Company had cash and short-term investments of $5.20 million as at December 31, 2009 compared to $9.13 million as at March 31, 2009. Considering the fully subscribed rights offering for approximately $34.5 million, the Company believes that it has adequate financial resources to continue its research and development activities and for general administrative purposes and working capital until the end of fiscal 2012.

For further details, please refer to the Consolidated Financial Statements and Management's Discussion and Analysis for the nine-month period ended December 31, 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 the Company's 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 the Company's annual information form and its 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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