ADHEREX REPORTS THIRD QUARTER 2009 FINANCIAL RESULTS


Research Triangle Park, NC, November 13, 2009 - - Adherex Technologies Inc. (TSX:AHX) today reported its financial results for the third quarter ended September 30, 2009.  All amounts are in U.S. dollars.

 

Financial Update

 

The net loss for the three month period ended September 30, 2009 was $0.04 million, or a loss of $0.00 per share, compared to a net loss of $3.2 million, or a loss of $0.03 per share, in the same period in 2008.  Operating expenses for the three month period ended September 30, 2009 totaled $0.3 million, as compared to $3.3 million in the same period in 2008. 

The net loss for the nine month period ended September 30, 2009 was $3.2 million, or a loss of $0.02 per share, compared to a net loss of $11.0 million, or a loss of $0.09 per share, in the same period in 2008.  Operating expenses for the nine month period ended September 30, 2009 totaled $3.3 million, as compared to $11.2 million in the same period in 2008.

Cash and cash equivalents totaled $0.9 million at September 30, 2009, compared to $5.3 million at December 31, 2008.  At September 30, 2009, the Company had working capital totaling approximately $0.6 million.  The decreased cash balance reflects expenditures used to fund operations and resolve contingent liabilities.  The Company believes that it has sufficient capital resources to fund operations into the first quarter of 2010.  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 unaudited 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 September 30, 2009 and management's discussion and analysis of financial condition and results of operations will be available via our website at www.adherex.com and also at www.sec.gov and www.sedar.com.gov.

 

 

 

 

 

 

 

 

Corporate Update

 

Management continues to evaluate and implement various cost cutting initiatives to reduce the Company’s cash burn rate.  Cost cutting initiatives during the past quarter included:  termination of the Company’s primary office lease and the renegotiation of outstanding contracts.  The Company remains committed to the future development of eniluracil/5-FU.  “We are in the process of designing a study under the leadership of Dr. Thomas Spector.  At the same time, we are continuing to explore various non dilutive opportunities to raise additional capital.” said Mr. Rosty Raykov, Chief Executive Officer of Adherex.

 
 
 About Adherex Technologies

Adherex Technologies Inc. is a biopharmaceutical company focused on the development of eniluracil and 5-fluorouaricil. 

 

FINANCIAL CHARTS FOLLOW

 




Adherex Technologies Inc.

Unaudited Selected Financial Data

(U.S. dollars in thousands except per share amounts)

 

 

 

 

 

Interim Consolidated Balance Sheets:

 

September 30,

2009

December 31,

2008

Assets:

 

 

 

Cash and cash equivalents

 

$          868

$           5,349

Other current assets

 

59

711

Total assets

 

$          927

$           6,060

 

 

 

 

Liabilities and stockholders’ equity:

 

 

 

Current liabilities

 

$             337

$          2,430

Other long-term liabilities

 

214

577

Total stockholders’ equity

 

376

3,053

Total liabilities and stockholders’ equity

 

$          927

$          6,060

 

 

 

Interim Consolidated Statements of Operations:

 

 

Three Months Ended

 

 

Nine Months Ended

 

September 30,

2009

September 30,

2008

September 30,

2009

September 30,

2008

 

 

 

 

 

Revenue

$                   -

$                   -

$                   -

$                  -

 

 

 

 

 

Operating expenses:

 

 

 

 

Research and development

47

2,821

1,976

8,768

General and administrative

292

478

1,276

2,478

 

 

 

 

 

Loss from operations

(340)

(3,299)

(3,253)

(11,246)

 

 

 

 

 

Other income (expense)

305

(85)

(13)

(85)

Interest income

-

55

47

256

 

 

 

 

 

Net loss and comprehensive loss

$             (35)

$         (3,329)

$          (3,219)

$          (11,075)

 

Basic and diluted net loss per common share

 $           (0.00)

 $           (0.03)

 $           (0.02)

 

 $           (0.09)

 

 

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.sec.gov and www.sedar.com.

For further information, please contact:

Rosty Raykov
Chief Executive Officer
Adherex Technologies Inc.
T: (919) 484-8484 x106