Adherex Technologies Inc.
TSX : AHX

Adherex Technologies Inc.

May 14, 2009 17:42 ET

Adherex Reports First Quarter 2009 Financial Results

RESEARCH TRIANGLE PARK, NORTH CAROLINA--(Marketwire - May 14, 2009) - Adherex Technologies Inc. (TSX:AHX), a biopharmaceutical company dedicated to solving problems for patients with cancer, today reported its financial results for the first quarter ended March 31, 2009. All amounts are in U.S. dollars.

Financial Update

The net loss for the three month period ended March 31, 2009 was $2.2 million, or a loss of $0.02 per share, compared to a net loss of $4.3 million, or a loss of $0.03 per share, in the same period in 2008. Operating expenses for the three month period ended March 31, 2009 totaled $2.0 million as compared to $4.4 million in the same period in 2008.

Cash and cash equivalents totaled $3.0 million as of March 31, 2009, compared to $5.3 million at December 31, 2008. At March 31, 2009, the Company had working capital totaling $1.7 million. The decreased cash balance reflects expenditures used to fund operations. The Company believes that it has sufficient capital resources to fund operations into August 2009. However, if a strategic transaction or other source of further financial resources cannot be secured in the very near term, we might cease operations sooner.

The selected financial data presented below is derived from our interim consolidated financial statements which were prepared in accordance with U.S. generally accepted accounting principles. The complete consolidated financial statements for the quarter ended March 31, 2009 and management's discussion and analysis of financial condition and results of operations are included in our Quarterly Report on Form 10-Q, which will be available via our website at www.adherex.com and also at www.sec.gov.

Corporate Update

In November 2008, in response to the Company's diminishing cash reserves and the progressive deterioration of the capital markets, the Company realigned its development programs to focus on its most attractive, nearer term value-generating opportunities. The Company subsequently implemented significant cost reductions throughout its operations, including a 75% reduction in staff effective April 30, 2009. The Board of Directors continues to review its strategic alternatives, including potential partnership transactions, mergers, acquisitions and/or the monetizing of certain assets, but there can be no assurances that any strategic or financial transaction will be secured, on reasonable terms or at all. Discussions with various companies interested in potential strategic transactions are ongoing but as the timelines become increasingly short, the likelihood of completing any such strategic transaction diminishes. The Company does not plan to make future announcements regarding the status of the strategic alternatives review unless there are material developments to report.

"Despite our best efforts, we have not succeeded in attracting additional capital to support our ongoing operations," said Dr. William P. Peters, Chairman & CEO of Adherex. "At this time, we have re-focused and reduced expenses as much as reasonably possible and are attempting to complete a strategic transaction. We continue to believe in the therapeutic and financial potential of our product candidates but as a small public biotechnology company, we are facing unprecedented times."

About Adherex Technologies

Adherex Technologies Inc. is a biopharmaceutical company dedicated to the discovery and development of novel cancer therapeutics. We are in the business of solving problems for patients with cancer. We have multiple products in the clinical stage of development, including eniluracil, ADH-1 and sodium thiosulfate (STS). Eniluracil, an oral dihydropyrimidine dehydrogenase (DPD) inhibitor, is being developed to improve the tolerability and effectiveness of 5-fluorouracil (5-FU), one of the most widely used oncology drugs in the world. ADH-1 is a biotechnology compound which selectively targets N-cadherin, a protein present on certain tumor cells and the blood vessels of solid tumors. STS is a chemoprotectant being developed to reduce or prevent hearing loss that may result from treatment with platinum-based chemotherapy drugs. For more information, please visit our website at www.adherex.com.



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

March December
31, 2009 31, 2008
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Condensed Consolidated Balance Sheets:
Assets:
Cash and cash equivalents $ 3,047 $ 5,349
Other current assets 200 711
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Total assets $ 3,247 $ 6,060
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Liabilities and stockholders' equity:
Current liabilities $ 1,593 $ 2,430
Other long-term liabilities 546 577
Total stockholders' equity 1,108 3,053
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Total liabilities and stockholders' equity $ 3,247 $ 6,060
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Three Months Ended March 31,
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2009 2008
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Condensed Consolidated Statements of Operations:
Operating expenses:
Research and development $ 1,279 $ 3,375
General and administrative 673 1,061
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Loss from operations (1,952) (4,436)

Loss on impairment of assets held for sale
and leasehold inducements (340) -
Interest income 46 132
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Total other income (expense), net (294) 132
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Net loss and comprehensive loss $ (2,246) $ (4,304)
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Net loss per share of common stock, basic
and diluted $ (0.02) $ (0.03)
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This press release contains forward-looking statements that involve significant risks and uncertainties. The actual results, performance or achievements of the Company might differ materially from the results, performance or achievements of the Company expressed or implied by such forward-looking statements. Such forward-looking statements include, without limitation, those regarding our development plans and the expected funding, timing and results of our development as well as our efforts to pursue strategic alternatives. We can provide no assurance that development will proceed as currently anticipated, that previous results will be predictive of future outcomes, that the expected funding, timing or results of our development will be realized, or that we will be able to form strategic collaborations or partnerships with other companies. We are subject to various risks, including our near term need for additional capital to fund our operations, current and anticipated conditions in the economy and financial markets, our history of losses, our ability to continue to meet the listing requirements of the TSX, the uncertainties of clinical trials, drug development and regulatory review, the early stage of our product candidates, our reliance on collaborative partners, and other risks inherent to the biopharmaceutical industry. For a more detailed discussion of related risk factors, please refer to our public filings available at www.sedar.com and www.sec.gov.

Contact Information

  • Adherex Technologies Inc.
    D. Scott Murray
    Senior Vice President, Corporate Development
    919-484-8484
    info@adherex.com