Adherex Technologies Inc.
TSX : AHX
AMEX : ADH

Adherex Technologies Inc.

March 26, 2007 08:30 ET

Adherex Reports 2006 Fiscal Results

RESEARCH TRIANGLE PARK, NORTH CAROLINA--(CCNMatthews - March 26, 2007) - Adherex Technologies Inc. (TSX:AHX)(AMEX:ADH), a biopharmaceutical company with a broad portfolio of oncology products under development, today reported its financial results for the twelve-month fiscal period ended December 31, 2006. All amounts are in U.S. dollars unless otherwise indicated.

The net loss for the twelve-month fiscal period ended December 31, 2006 was $19.1 million, or $0.40 loss per share, compared to a net loss of $19.2 million, or $0.49 loss per share, for the twelve-month fiscal period ended December 31, 2005. Operating expenses totaled $19.1 million for the twelve-month fiscal period ended December 31, 2006 as compared to $18.3 million for the twelve-month fiscal period ended December 31, 2005. The increased operational expenses primarily reflect the advancement of our product portfolio including increased clinical activity for eniluracil and ADH-1.

Cash and cash equivalents totaled $5.7 million as of December 31, 2006 compared to $13.1 million as of December 31, 2005, with a corresponding decrease in working capital of $9.5 million. The decreased cash balance reflects spending to fund operations. Subsequent to the year end, the Company received approximately $23.3 million in net proceeds from a public offering.

The selected consolidated financial data presented below are derived from our consolidated financial statements prepared under Canadian generally accepted accounting principles and are not complete. Specifically, they exclude the accompanying footnotes, which are an integral part of the consolidated financial statements, including the reconciliation between U.S. and Canadian GAAP. The complete audited consolidated financial statements for the year ended December 31, 2006 and management's discussion and analysis of financial condition and results of operations are available on our website at www.adherex.com.



Adherex Technologies Inc.
Selected Financial Data
(U.S. dollars and shares in thousands except per share amounts)


Condensed Consolidated Balance Sheets:

December 31, December 31,
2006 2005
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Assets:
Cash, cash equivalents and short-term
investments $5,718 $13,144
Other current and long-term assets 910 1,147
Acquired intellectual property rights 9,956 14,154
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Total Assets $16,584 $28,445
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Liabilities and shareholders' equity:
Accounts payable and accrued liabilities $4,695 $2,664
Other current and long-term liabilities 665 550
Future income taxes 3,639 5,174
Total shareholders' equity 7,585 20,057
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Total liabilities and shareholders' equity $16,584 $28,445
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Condensed Consolidated Statements of Operations:

Six Months
Year Ended Year Ended Ended Year Ended
December 31, December 31, December 31, June 30,
2006 2005 2004 2004
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Revenue $- $- $- $-

Operating expenses:
Research and
development 14,003 12,441 3,443 3,561
General and
administration 2,883 3,182 2,727 3,481
Amortization of
acquired intellectual
property rights 2,177 2,723 1,234 2,323
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(Loss from
operations) (19,063) (18,346) (7,404) (9,365)

Other income (expense):
Loss on impairment of
intellectual property (2,021) (3,539) - -
Settlement of
Cadherin Biomedical
Inc. litigation - - (1,283) -
Interest expense (3) (11) - (331)
Interest income 449 361 171 162
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Total other income
and (expense) (1,575) (3,189) (1,112) (169)
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Loss before
income taxes (20,638) (21,535) (8,516) (9,534)

Recovery of future
income taxes 1,535 2,290 451 849
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Net loss $(19,103) $(19,245) $(8,065) $(8,685)
----------------------------------------------------------------------
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Net loss per share
of common stock,
basic and diluted $(0.40) $(0.49) $(0.22) $(0.36)
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Weighted-average number
of shares of common
stock outstanding,
basic and diluted 47,663 39,276 35,989 24,233
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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 eniluracil, ADH-1 and sodium thiosulfate (STS). Eniluracil, an oral dihydropyrimidine dehydrogenase (DPD) inhibitor, was previously under development by GlaxoSmithKline for oncology indications. 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. 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.

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