Adherex Technologies Inc.
TSX : AHX
PINK SHEETS : ADHXF

Adherex Technologies Inc.

March 31, 2011 21:25 ET

Adherex Reports Recent Developments and Fiscal Year Ended December 31, 2010 Financial Results

RESEARCH TRIANGLE PARK, NORTH CAROLINA--(Marketwire - March 31, 2011) - Adherex Technologies Inc. (TSX:AHX)(PINK SHEETS:ADHXF), a biopharmaceutical company focused on the development of eniluracil and 5-fluorouracil, today reported its financial results for the fiscal year ended December 31, 2010. All amounts are in U.S. dollars unless otherwise specified.

Recent Developments

  • Eniluracil Phase 2 Study Update - Adherex has received approval from the Ministry of Healthcare and Social Development in Russia to conduct the Company's Phase 2 Clinical Study with Eniluracil. The Company anticipates enrollment to commence shortly. Adherex is also in the process of opening several clinical sites in the United States. 

  • Rights Offering - The subscription period for the Company's previously announced rights offering expired 5:00pm New York City time, on March 29, 2011. The subscription agent has informed the Company that based on a preliminary tabulation the total gross proceeds anticipated to be received by the Company is approximately CAD$2.5 million. Based on the preliminary tabulation the Company sold approximately 85 million units which consist of 85 million shares of common stock and 85 million warrants underlying such units.

"The recently concluded rights offering provided our stockholders with an opportunity to invest in our Company on the same economic terms as the participants in the Company's April, 2010 private placement. We would like to thank our current investors for their continuing support. Now that we have received all of the regulatory approvals in Russia, we are in a position to shortly commence the Phase 2 Study comparing the efficacy and safety profile of Eniluracil/5-FU/Leucovorin versus Capecitabine in metastatic breast cancer patients. We are committed to driving shareholder value and look forward to updating you on our progress as we strive to produce important clinical results in the next 18 months," said Mr. Rosty Raykov, Chief Executive Officer of Adherex.

Financial Update

The Company reported a net loss for the fiscal year ended December 31, 2010 of $7.8 million, or a loss of $0.03 per share, compared to a net loss of $3.0 million, or a loss of $0.02 per share, in the same period in 2009. The increase in the reported net loss is primarily due to an unrealized loss on the Company's derivative warrant liability and an increase in stock based compensation. The Company reported an unrealized loss of $3.2 million on derivative warrants as compared to nil in the same period in 2009. The Company reported $2.5 million in stock based compensation for the fiscal year ended December 31, 2010 as compared to $0.4 million in the same period in 2009. Research and development expenses totaled $0.7 million, as compared to $2.1 million in the same period in 2009 as the Company focused its resources primarily on the development of eniluracil.

Cash and cash equivalents totaled $5.9 million at December 31, 2010, compared to $0.7 million at December 31, 2009. The increased cash balance is due to the April 30, 2010 closing of the private placement transaction for net proceeds of $7.2 million. At December 31, 2010, the Company had working capital totaling approximately $5.5 million compared to $0.4 million as of December 31, 2009. 

The selected financial data presented below is derived from our audited consolidated financial statements which were prepared in accordance with U.S. generally accepted accounting principles. The complete consolidated financial statements for the year ended December 31, 2010 and management's discussion and analysis of financial condition and results of operations will be available via www.sec.gov and www.sedar.com.

FINANCIAL CHARTS FOLLOW




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

Consolidated Balance Sheets:
December 31,
2010
  December 31,
2009
Assets:      
Cash and cash equivalents $ 5,947   $ 685
Other current assets 46   148
Total assets $ 5,993   $ 833
       
Liabilities and stockholders' equity:      
Current liabilities $ 467   $ 420
Derivative warrant liability 10,450   -
Other long-term liabilities -   7
Total stockholders' equity (4,924 ) 406
Total liabilities and stockholders' equity $ 5,993   $ 833


Consolidated Statements of Operations:
   
  December 31,
2010
  December 31,
2009
 
         
Revenue $ -   $ -  
             
Operating expenses:            
  Research and development   708     2,113  
  Impairment of Capital Assets   ---     386  
  (Gain) on Deferred Lease Inducements   ---     (497 )
  General and administrative   3,896     1,214  
             
(Loss) from operations   (4,604 )   (3,216 )
             
  Other income (expense)   -     157  
  (Loss) on derivative warrants   (3,251 )   -  
  Interest income   32     47  
             
Net (loss) and comprehensive (loss) $ (7,823 ) $ (3,012 )

Basic and diluted net (loss) per common share
$ (0.03 )  
 $ (0.02
)

Except for historical information described in this press release, all other statements are forward-looking. Forward-looking statements are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to vary, including such risks that regulatory clinical and guideline developments may change, scientific data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, clinical results may not be replicated in actual patient settings, protection offered by the Company's patents and patent applications may be challenged, invalidated or circumvented by its competitors, the available market for the Company's products will not be as large as expected, the Company's products will not be able to penetrate one or more targeted markets, revenues will not be sufficient to fund further development and clinical studies, the Company may not meet its future capital needs, and its ability to obtain additional funding, as well as uncertainties relative to varying product formulations and a multitude of diverse regulatory and marketing requirements in different countries and municipalities, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K for the year ended December 31, 2009. Adherex Technologies, Inc. disclaims any obligation to update these forward-looking statements except as required by law.

For a more detailed discussion of related risk factors, please refer to our public filings available at www.sec.gov and www.sedar.com.

Contact Information

  • Adherex Technologies Inc.
    Rosty Raykov
    Chief Executive Officer
    919-636-5144