EntreMed Reports Second Quarter 2008 Financial Results
ROCKVILLE, Md., Aug. 6 /PRNewswire-FirstCall/ — EntreMed, Inc. , a clinical-stage pharmaceutical company developing therapeutics for the treatment of cancer and inflammatory diseases, today reported financial results for the three and six-month periods ending June 30, 2008.
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The Company reported a net loss for the second quarter of 2008 of ($9.6 million), or ($0.11) per share. This compares with a net loss of ($7.9 million), or ($0.10) per share, for the same period last year. For the first six months of 2008 the reported net loss was ($17.9 million), or ($0.22) per share as compared to ($15.6 million), or ($0.19) per share for 2007. The 2008 net loss for the three and six-month periods include a non-cash charge of $2.0 million, which represents a purchase price adjustment milestone triggered by the dosing of the first patient in a clinical trial for ENMD-2076, the lead molecule in our Aurora kinase program acquired from Miikana Therapeutics in January 2006.
The Company did not report any revenues for the first six months of 2008, although the Company believes that it will record royalty revenues in excess of $7 million on sales of Thalomid(R) by Celgene in the third and fourth quarters of 2008. As of June 30, 2008, EntreMed had cash and short-term investments of approximately $36 million.
Dane Saglio, EntreMed Chief Financial Officer, commented on the second quarter results, “During the second quarter of 2008, we recorded a $2.0 million non-cash charge resulting from the Company’s decision to make the ENMD-2076 milestone payment in stock. Excluding the non-cash charge, second quarter expenses were in-line with first quarter expenses and below the comparable period in 2007. We expect operating expenses to remain at similar levels for the third quarter before decreasing towards the end of the year. In addition, we anticipate that royalty revenue on Celgene’s sales of Thalomid(R) will offset a portion of our expenses in the second half. We expect to begin recording royalties in the third quarter.”
James S. Burns, EntreMed President and Chief Executive Officer, commented, “We continue to focus on our three principal objectives for 2008 namely, concentrating our resources on our high-priority oncology programs, conserving cash by funding only essential program activities, and focusing on partnering our promising Aurora/angiogenesis kinase inhibitor. The advancement of ENMD-2076 into clinical development represents a significant accomplishment as this program was in preclinical discovery when acquired in January 2006. All of EntreMed’s programs are currently in clinical development such that we have multiple opportunities for both internal development and partnering. Consistent with our previous guidance, we anticipate achieving the balance of our 2008 milestones and remaining on or below our expense budget for the second half of 2008.”
The second quarter update call is scheduled for Tuesday, August 12, 2008 from 10:30 am to 11:30 am ET and will include a question and answer session. To access the live conference, please dial 800-418-7236 (U.S. or Canada) or 973-935-8757 (internationally) and reference conference number 57437910 at least 10 minutes prior to the beginning of the call. A digital recording will be available approximately two hours after completion of the conference and will be accessible for 60 days. To access the recording, dial 800-642-1687 (U.S. or Canada) or 706-645-9291(internationally) and enter the Conference ID number 57437910. This call will not be web cast; however, an audio replay will also be available on the Company’s website at http://www.entremed.com/ approximately two hours after the conclusion of the live conference.
EntreMed, Inc. is a clinical-stage pharmaceutical company developing therapeutic candidates primarily for the treatment of cancer and inflammation. MKC-1 is currently in multiple Phase 2 clinical trials for cancer. MKC-1 is an oral cell-cycle regulator with activity against the mTOR pathway. ENMD-1198, a novel antimitotic agent, and ENMD-2076, a selective kinase inhibitor, are in Phase 1 studies in advanced cancers. The Company also has an approved IND application for Panzem(R) in rheumatoid arthritis. EntreMed’s goal is to develop and commercialize new compounds based on the Company’s expertise in angiogenesis, cell cycle regulation, cell signaling and inflammation — processes vital to the treatment of cancer and other diseases, such as rheumatoid arthritis. Additional information about EntreMed is available on the Company’s web site at http://www.entremed.com/ and in various filings with the Securities and Exchange Commission.
Forward Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for expectations for future financial or business performance (including the timing of royalty revenues and future R&D expenditures), strategies, expectations and goals. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and no duty to update forward-looking statements is assumed. Actual results could differ materially from those currently anticipated due to a number of factors, including those set forth in Securities and Exchange Commission filings under “Risk Factors,” including risks relating to the need for additional capital and the uncertainty of additional funding; variations in actual sales of Thalomid(R), risks associated with the Company’s product candidates; the early-stage products under development; results in preclinical models are not necessarily indicative of clinical results, uncertainties relating to preclinical and clinical trials; success in the clinical development of any products; dependence on third parties; future capital needs; and risks relating to the commercialization, if any, of the Company’s proposed products (such as marketing, safety, regulatory, patent, product liability, supply, competition and other risks).
Contact: Ginny Dunn Associate Director Corporate Communications & Investor Relations 240-864-2643 (Financial Table Attached) -more- ENTREMED, INC. SUMMARY OF OPERATING RESULTS Three Months Ended June 30, 2008 2007 Total revenues $0 $0 Research and development 5,484,857 6,581,287 General and administrative 1,739,691 1,869,811 In-process research and development 2,000,000 0 Net loss (9,570,143) (7,934,693) Net loss per share (basic and diluted) attributable to common shareholders $(0.11) $(0.10) Weighted average number of shares outstanding (basic and diluted) 85,535,426 84,059,149 Six Months Ended June 30, 2008 2007 Total revenues $0 $ 0 Research and development 11,672,060 12,979,983 General and administrative 3,722,685 3,701,137 In-process research and development 2,000,000 0 Net loss (17,916,599) (15,608,279) Net loss per share (basic and diluted) attributable to common shareholders $(0.22) $(0.19) Weighted average number of outstanding (basic and diluted) shares 85,217,169 84,015,999 Cash and short-term investments $36,196,345 $38,062,570
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CONTACT: Ginny Dunn, Associate Director, Corporate Communications &Investor Relations of EntreMed, Inc., +1-240-864-2643
Web site: http://www.entremed.com/