SOURCE: Adeona Pharmaceuticals, Inc.

Adeona Pharmaceuticals, Inc.

August 14, 2009 11:59 ET

Adeona Pharmaceuticals Announces Second Quarter 2009 Results and Achievements

ANN ARBOR, MI--(Marketwire - August 14, 2009) - Adeona Pharmaceuticals, Inc. (NYSE Amex: AEN), a specialty pharmaceutical company dedicated to the awareness, diagnosis, prevention and treatment of zinc deficiency and chronic copper toxicity in the mature population, today announced its results for its second quarter ended June 30, 2009 and recent achievements.

A conference call has been scheduled for 2:00pm EDT on August 14, 2009. In order to listen to the conference call, please call toll free: 800-390-5696 and international dial-in: 719-325-2282 passcode 3885495. A replay of the conference call will be archived for at least 15 days on Adeona's website at www.adeonapharma.com.

Second quarter and recent highlights included:

--  Appointment of Max Lyon as Chief Executive Officer and President;
--  Presented results of the CopperProof Study, an Adeona-sponsored 90
    subject prospective, blinded, observational clinical study evaluating
    copper and zinc status in Alzheimer's disease, Parkinson's disease and
    normal subjects, at the 2009 International Conference on Alzheimer's
    Disease (ICAD) in Vienna, Austria;
--  Completed the acquisition of Hartlab LLC, an independent Chicago-area
    CLIA-certified clinical reference laboratory;
--  Exhibited and introduced Hartlab to the 4,000+ Alzheimer's disease
    clinician and researcher attendees of ICAD;
--  Appointment of David A. Newsome, M.D., President of Adeona's health
    information and education subsidiary, HealthMine, Inc.
    

Max Lyon, President & Chief Executive Officer of Adeona, commented, "We are pleased with our progress in the second quarter, particularly the acquisition on Hartlab which now gives us the near term opportunity to enter the market with the only comprehensive diagnostic test panel available for determining the copper and zinc status of patients with neurodegenerative diseases such as Alzheimer's disease, dementia and mild cognitive impairment. Based on the new data we presented at the ICAD conference, combined with the existing peer reviewed data available, we believe that the comprehensive determining of copper and zinc status combined with the appropriate follow on therapeutic actions could have a significant impact on the progression of these diseases."

Financial Results for Second Quarter of 2009

The net loss for the quarter ended June 30, 2009 was $879,550 or $0.04 per share compared to a net loss of $1,113,275 or $0.05 per share for the previous quarter ended March 31, 2009, a reduction of 21%. The net loss for the quarter ended June 30, 2009 excluding depreciation and stock-based compensation and stock-based consulting was $659,299 compared to $758,221 for the previous quarter ended March 31, 2009, a reduction of 23%. The net loss for the quarter ended June 30, 2009 included a one-time cash expense of $75,000 related to the cancelled acquisition of Colwell Clinical Laboratories.

Of the net loss for the quarter ended June 30, 2009, $405,645 was attributable to research and development expenses and $473,961was attributable to general and administrative expenses. The net loss for the six months ended June 30, 2009 was $1, 992,825, or $0.09 per share, compared to a net loss of $4,861,169, or $0.24 per share, for the comparable period in 2008. This decrease of $2,864,334 in net loss was due to the significant downsizing and cost saving measures initiated at the end of the first quarter of 2008. Research and development expenses decreased by $2,391,344 for the six months ended June 30, 2009 as compared to the same period last year. The decrease primarily relates to a decrease of approximately $1,067,000 associated with the reduced development expenses associated with our licensed clinical drug candidates, a decrease of approximately $839,000 in stock based compensation charges and a decrease in salaries and related taxes of approximately $398,000. General and administrative expenses decreased by $542,306 for the six months ended June 30, 2009 as compared to the same period in 2008, which is primarily due to a decrease in salaries and related payroll taxes of approximately $260,000, a decrease in stock based compensation charges of approximately $164,000, a decrease in allocated overhead of approximately $60,000 and a decrease in professional fees of approximately $52,000.

At June 30, 2009, Adeona had cash of approximately $4.42 million and working capital of approximately $4.06 million. Excluding the one-time cash expenditure of $75,000 related to the cancelled acquisition of Colwell Clinical Laboratories, Adeona's net decrease in working capital, or "burn rate", for the quarter ended June 30, 2009 was $572,373 which compares to Adeona's burn rate of $596,288 for the previous quarter ended March 31, 2009. Adeona currently believes that it has sufficient working capital to fund operations for the next 16 months. As a result of Adeona's acquisition on July 9, 2009 of Hartlab LLC, a Chicago-area CLIA-certified clinical reference laboratory, Adeona has begun generating revenues in the current quarter and plans to launch a suite of assays intended to diagnose and quantify potential copper toxicity and other metal-implicated neurodegenerative conditions.

About Adeona Pharmaceuticals, Inc.

Adeona Pharmaceuticals, Inc. (NYSE Amex: AEN) is a specialty pharmaceutical company dedicated to the awareness, diagnosis, prevention and treatment of zinc deficiency and chronic copper toxicity in the mature population. Adeona believes that such conditions may contribute to the progression of debilitating 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.

This 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 its oral zinc therapies, dnaJP1, Zinthionein, flupirtine, or Trimesta. Adeona is at an early stage of development and may not ever have any products that generate significant revenue. Adeona's Hartlab subsidiary is generating modest revenues and its future success will likely depend upon its ability to successfully introduce and market new specialty diagnostic assays to generate additional revenues. 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 to promote or commercialize its products for awareness, prevention, diagnosis or treatment of zinc deficiency and chronic copper toxicity, a lack of acceptance of Adeona's product candidates in the marketplace, a failure of the company to become or remain profitable, that we will continue to meet the continued listing requirements of the American Stock Exchange (which, unlike other exchanges, does not require us to maintain any minimum bid price with respect our stock but does require us to maintain a minimum of $4 million in stockholders' equity during the current year, for example), our inability to obtain the capital necessary to fund the company's research and development activities, a loss of any of the company's key scientists or management personnel, and other factors described in Adeona's report on Form 10-K for the year ended December 31, 2008, Forms 10-Q for quarters ending in 2009 and any other filings with the SEC. No forward-looking statements can be guaranteed and actual results may differ materially from such statements. The information in this release is provided only as of the date of this release, and Adeona undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.

Contact Information

  • For Further Information Contact:

    Max Lyon
    Chief Executive Officer and President
    (734) 332-7800 x36