Bradmer announces 2009 fourth quarter and fiscal year operational and
financial results

TSX: BMR

TORONTO, Feb. 16 /CNW/ - Bradmer Pharmaceuticals Inc. ("Bradmer" or the "Company") today announced its 2009 fourth quarter and fiscal year operational and financial results.

Operational Highlights

During the three-month and twelve-month periods ended December 31, 2009, the Company continued its stated actions arising from the strategic review of operations announced February 17, 2009. Pursuant to the strategic review, the Company closed its Phase III GLASS-ART Trial in March 2009 to further patient enrolment, as the completion of initial milestones was projected to fully exhaust the Company's cash resources, while capital market conditions restricted the ability to raise further capital. On February 5, 2010, the TSX announced that the common shares of Bradmer would be delisted on March 5 due to inability to maintain minimal capitalization requirements. The Company has continued to execute on its cash conservation plan in the fourth quarter with the termination of all remaining staff and the elimination of clinical trial related expenses. Presently, after satisfaction of all known operating expenses, payables, and liabilities, the Company is projecting to have between $650,000 and $700,000 in unencumbered cash at March 31, 2010 with virtually no known liabilities. To afford shareholders liquidity, the company anticipates listing on the NEX Board of the TSX Venture Exchange and seeks a change in business during the coming months.

As at December 31, 2009, Dr. Alan M. Ezrin, President and CEO, remains a Director of the Company and has agreed to execute his C-level responsibilities without compensation while continuing to explore all strategic options available to the Company. Paul Van Damme has agreed to continue to function as Bradmer's CFO on a per diem basis. In September 2009, the Company executed a substantial issuer bid whereby the Company purchased for cancellation 7.5 million of its outstanding common shares, at a price of Cdn$0.20 per share or approximately US$0.183 per share, for proceeds paid to shareholders of $1,366,000.

Financial Results

Amounts in US dollars, unless specified otherwise, and results expressed in accordance with Canadian Generally Accepted Accounting Principles (Canadian GAAP).

For the year ended December 31, 2009, the Company recorded a net loss of $5,476,000 or $0.49 per common share based on the weighted average outstanding shares of 11,157,746 during the year, compared to a net loss of $11,529,000 or $0.85 per common share for the year ended December 31, 2008 based on the weighted average outstanding shares of 13,488,215. The decreased loss in 2009 was primarily related to the wind-down of the Company's lead clinical program, Neuradiab, in preparation for the planned hibernation of the company as well as the reduction in the Company's staffing and administrative functions during this period.

Research and development expenses totaled $2,326,000 in fiscal 2009, compared to $8,327,000 in fiscal 2008. The decrease was primarily due to decreased expenses incurred in 2009 for drug-manufacturing contracts amounting to $514,000 compared with $3,354,000 in 2008. Amounts expensed to clinical research organizations were $658,000 in 2009, compared to $2,346,000 in 2008. During 2008, Bradmer initiated the Phase III clinical trial and suspended enrolment in it in February 2009. Compensation costs for the reduced clinical staff amounting to $754,000 compared to $1,108,000 for 2008. Compensation in 2009 included severance and contractual termination costs for the ten employees, all of whom have been terminated.

General and administrative expenses were $2,446,000 in 2009 compared to $3,389,000 in the prior year as a result of the wind-down of the Company's operations. Compensation costs amounted to $1,208,000 in 2009 compared with $1,355,000 in 2008. Compensation in 2009 included severance and contractual termination costs for the eight employees. As at December 31, 2009, all employees have been terminated and their employment contracts satisfied. The portion of stock-based compensation, a noncash item, included in general and administrative expenses was $385,000 for the year, as compared to $320,000 for 2008. The remaining $46,000 of stock-based compensation recovery is included in research and development expenses compared to $124,000 of stock-based compensation expense in 2008.

For the three-month period ended December 31, 2009, Bradmer recorded a net loss of $800,000, or $0.13 per common share based on the weighted average outstanding shares of 6,026,627. This compares to a net loss of $2,327,000, or $0.17 per common share for the three months ended December 31, 2008 based on the weighted average outstanding shares of 13,488,215. During the fourth quarter of 2009, the Company continued its focus on cost reduction opportunities in all areas of the business, particularly staff reductions, in response to the termination of the clinical trial and the existing economic conditions.

Research and development expenses for the fourth quarter of 2009 were $36,000, a decrease of $1,550,000 from $1,586,000 in the same period of 2008. The decrease was primarily due to the termination of CRO, clinical site costs and drug supply support costs for the terminated Phase III clinical development program. The expenses incurred in 2008 consisted primarily of CRO costs of $354,000 and drug manufacturing contracts of $351,000.

General and administrative expenses were $760,000 in the fourth quarter of 2009, unchanged from $761,000 in 2008. The portion of stock-based compensation, a noncash item, included in general and administrative expenses was $381,000 for the quarter, compared with $28,000 in the same period in 2008. The remaining $4,000 of stock-based compensation is included in research and development expenses compared to $21,000 in 2008.

As at December 31, 2009, Bradmer had working capital of $810,000, as compared to $6,691,000 at December 31, 2008. The Company had available cash of $860,000 at December 31, 2009, compared to cash and cash equivalents of $8,245,000 at December 31, 2008. The decrease was due to the operating losses incurred in the period, the $1,454,000 repurchase of common shares and the $1,528,000 reduction in accounts payable and accrued liabilities.

As at December 31, 2009, there were 6,026,627 common shares issued and outstanding and 752,500 stock options. Pursuant to a special resolution passed by shareholders on June 25, 2009, the Company reduced its stated capital amount by CDN$32,900,000 ($28,616,848) and applied this against the deficit.

Additional information about the Company, including the MD&A and financial results may be found on SEDAR at www.sedar.com.

About Bradmer Pharmaceuticals Inc. (www.bradmerpharma.com)

Bradmer Pharmaceuticals' lead clinical candidate, Neuradiab, was developed at Duke University Medical Center as a proprietary therapy for a particularly aggressive form of brain cancer, glioblastoma multiforme. Bradmer initiated enrollment of primary GBM patients in a Phase III multi-center clinical trial of Neuradiab. Neuradiab was granted Orphan Drug Status by both the U.S. Food and Drug Administration and the European Medicines Agency. The Company seeks potential license partners to complete commercialization.

Bradmer Pharmaceuticals Inc.'s common shares have not been registered under the Securities Act of 1933, as amended (the "Securities Act") or any state regulatory agency in the United States. The resale or transfer by a U.S. investor of such common shares of Bradmer Pharmaceuticals Inc. is subject to the requirements of Rule 904 of Regulation S of the Securities Act or such other applicable exemption thereunder, and other applicable state securities laws.

Except for historical information, this press release may contain forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.

Financial results are included below:

    
    Bradmer Pharmaceuticals Inc.
    Balance Sheets
    US $

                                                  December 31,   December 31,
                                                      2009           2008
                                                -------------- --------------
    Assets                                         (audited)      (audited)

    Current
      Cash and cash equivalents                 $     860,460  $   8,245,455
      Amounts receivable                                1,944         12,520
      Prepaid expenses and other assets                14,246         27,158
                                                -------------- --------------

                                                      876,650      8,285,133

    Patent rights                                           -        711,054
                                                -------------- --------------

                                                $     876,650  $   8,996,187
                                                -------------- --------------
                                                -------------- --------------

    Liabilities

    Current
      Accounts payable and accrued liabilities  $      66,225  $   1,594,578
                                                -------------- --------------

    Shareholders' Equity

    Capital stock                                   1,076,755     31,026,728

    Warrants                                          783,988        881,488

    Contributed surplus                             1,474,503      1,158,886

    Deficit                                        (2,524,821)   (25,665,493)
                                                -------------- --------------

                                                      810,425      7,401,609
                                                -------------- --------------

                                                $     876,650  $   8,996,187
                                                -------------- --------------



    Bradmer Pharmaceuticals Inc.
    Statements of Operations and Deficit
    US $

                       Three          Three
                   Months Ended   Months Ended     Year Ended     Year Ended
                    December 31,   December 31,   December 31,   December 31,
                        2009           2008           2009           2008
                  -------------- --------------- -------------- -------------
    Expenses                                        (audited)      (audited)
      Research &
       develop-
       ment       $      36,179  $   1,585,762  $   2,325,563  $   8,326,958
      General &
       adminis-
       tration          760,041        760,608      2,445,979      3,389,453
      Amortization
       of patent
       rights                 -         16,022         47,397         61,571
      Write-down
       of patent
       rights                 -              -        672,865              -
      Foreign
       exchange
       (gain)/loss        4,183          9,920          8,535         24,352
                  -------------- --------------- -------------- -------------

                        800,403      2,372,312      5,500,339     11,802,334

    Interest income         247         45,178         24,163        273,277
                  -------------- --------------- -------------- -------------

    Net loss           (800,156)    (2,327,134)    (5,476,176)   (11,529,057)

    Deficit at
     beginning
     of period       (1,724,665)   (23,338,359)   (25,665,493)   (14,136,436)

    Application of
     stated capital
     against deficit          -              -     28,616,848              -
                  -------------- --------------- -------------- -------------

    Deficit at
     end of
     period       $  (2,524,821) $ (25,665,493) $  (2,524,821) $ (25,665,493)
                  -------------- --------------- -------------- -------------
                  -------------- --------------- -------------- -------------

    Basic and
     diluted net
     loss per
     share        $       (0.13) $       (0.17) $       (0.49) $       (0.85)
                  -------------- --------------- -------------- -------------
                  -------------- --------------- -------------- -------------

    Weighted
     average
     number of
     shares           6,026,627     13,488,215     11,157,746     13,488,215
                  -------------- --------------- -------------- -------------
                  -------------- --------------- -------------- -------------



    Bradmer Pharmaceuticals Inc.
    Statements of Cash Flows
    US $

                       Three          Three
                   Months Ended   Months Ended     Year Ended     Year Ended
                    December 31,   December 31,   December 31,   December 31,
                        2009           2008           2009           2008
                  -------------- --------------- -------------- -------------
                                                    (audited)      (audited)
    Cash flows
     from
     operating
     activities
      Net loss
       for the
       period     $    (800,156) $  (2,327,134)  $ (5,476,176)  $(11,529,057)
      Add items
       not
       affecting
       cash
        Amortization
         of patents           -         16,022         47,397         61,571
        Write-down
         of patent
         rights               -              -        672,865              -
        Stock-based
         compensation   384,942         49,338        339,352        443,905
                  -------------- --------------- -------------- -------------

                       (415,214)    (2,261,774)    (4,416,562)   (11,023,581)

    Changes in
     non-cash
     working
     capital
     items
      Amounts
       receivable         3,704         (7,961)        10,576        131,202
      Prepaid
       expenses          17,021         19,210         12,912         (3,129)
      Accounts
       payable and
       accrued
       liabilities     (188,087)      (731,553)    (1,528,353)      (240,914)
                  -------------- --------------- -------------- -------------

                       (582,576)    (2,982,078)    (5,921,427)   (11,136,422)
                  -------------- --------------- -------------- -------------

    Cash flows from
     investing
     activities
      Investment in
       patent rights          -        (19,374)        (9,208)       (87,460)
      Purchase of
       short-term
       investment             -              -              -    (10,000,000)
      Redemption of
       short-term
       Investment             -              -              -     10,000,000
                  -------------- --------------- -------------- -------------

                              -        (19,374)        (9,208)       (87,460)
                  -------------- --------------- -------------- -------------

    Cash flows from
     financing
     activities
      Repurchase of
       common shares          -              -     (1,454,360)             -
                  -------------- --------------- -------------- -------------

                              -              -     (1,454,360)             -
                  -------------- --------------- -------------- -------------

    Decrease in
     cash during
     the period        (582,576)    (3,001,452)    (7,384,995)   (11,223,882)

    Cash and cash
     equivalents
     at beginning
     of period        1,443,036     11,246,907      8,245,455     19,469,337
                  -------------- --------------- -------------- -------------

    Cash and cash
     equivalents
     at end of
     period       $     860,460  $   8,245,455   $    860,460   $  8,245,455
                  -------------- --------------- -------------- -------------
                  -------------- --------------- -------------- -------------
    

%SEDAR: 00023367E

SOURCE BRADMER PHARMACEUTICALS INC.

For further information: For further information: Bradmer Pharmaceuticals Inc., Paul Van Damme, Chief Financial Officer, Phone: (888) 267-0707 (Ext. 812), E-mail: pvandamme@bradmerpharma.com, Internet: www.bradmerpharma.com; Investor Relations, Ross Marshall, The Equicom Group Inc., Phone: (416) 815-0700 (Ext. 238), Fax: (416) 815-0080, E-mail: rmarshall@equicomgroup.com

Organization Profile

BRADMER PHARMACEUTICALS INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890