WEX Pharmaceuticals Inc.

WEX Pharmaceuticals Inc.

March 18, 2011 17:21 ET

WEX Reports Year End Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 18, 2011) - WEX Pharmaceuticals Inc. (TSX:WXI) ("WEX" or the "Company") reported events and financial results for the fiscal year ended December 31, 2010. All amounts, unless specified otherwise, are in Canadian dollars.

Major Events

  • During the quarter and fiscal year ended December 31, 2010, the Company continued to focus its efforts and resources on the Canadian pivotal trials for TTX, TEC-006 and TEC-006OL. As of March 18, 2011, the Company has 15 active sites and has enrolled 107 patients in the TEC-006 trial. About 62% of the patients who completed the TEC-006 trial chose to enroll in TEC-006OL.
  • Following the interim analysis by the independent data monitoring committee in September 2010, the Company met with Health Canada in October to discuss the outcome of the interim analysis. Health Canada agreed that the Company could continue the trial and that WEX should file a protocol amendment to add one or more co-primary endpoints to improve the chances of the trial successfully meeting a prospectively defined endpoint. Adjusting for multiple co-primary endpoints, which was not presented by the DMC in their analysis, and to increase the likelihood of success, the trial would need to enroll a total of between 238 and 254 evaluable patients, depending on the number of co-primary endpoints. Aside from a revision to the statistical analysis plan to account for the co-primary endpoints, all other aspects of the trial protocol would remain unchanged. The Company is continuing patient enrolment while evaluating the clinical and commercial feasibility of implementing these changes.
  • On January 12, 2011, Pharmagesic (Holdings) Inc. ("Pharmagesic"), a wholly owned subsidiary of CK Life Sciences Int'l (Holdings) Inc., ("CKLS") and WEX jointly announced that Pharmagesic, together with its wholly owned subsidiary 7735308 Canada limited, was making a takeover bid (the Offer) for all of WEX's outstanding restricted voting shares not held by Pharmagesic at an offer price of $0.14 cash per share, and that the Independent Committee of the WEX's board of directors, and WEX's board of directors itself, have unanimously agreed to recommend that WEX shareholders accept the offer.
  • On March 11, 2011, Pharmagesic announced that it had taken up shares which represented over 90% of outstanding WEX shares and that it intended to enter into a subsequent acquisition transaction to acquire all of the remaining WEX shares that are not acquired pursuant to the offer. Pharmagesic has requested that the board of directors of WEX set a record date and a meeting date for a special meeting of shareholders of WEX to approve such a transaction.

Financial Results

For the fiscal year ended December 31, 2010, the Company recorded a net loss of $7.77 million ($0.02 per share) compared to a net loss of $5.83 million ($0.06 per share) for the fiscal period ended December 31, 2009. When compared with the same twelve-month period ended December 31, 2009 of $8.39 million ($0.09 per share) the decrease in net loss of $0.62 million is mainly attributable to the elimination of interest expense on convertible debenture due to the conversion into restricted voting shares on October 2009, offset by the increase in research and development expenditures, asset impairment loss and the decrease in net loss from discontinued operation.

The Company had cash and investments of $32.03 million as at December 31, 2010 compared to $5.20 million as at December 31, 2009.

For further details, please refer to the consolidated financial statements and Management's Discussions and Analysis for the fiscal year ended December 31, 2010 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 our 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 our annual information form and our quarterly and annual management's discussion and analysis for additional information on risks and uncertainties relating to the forward-looking statement 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.

Contact Information