Bradmer announces 2009 second quarter operational and financial results



    TSX: BMR

    TORONTO, Aug. 5 /CNW/ - Bradmer Pharmaceuticals Inc. ("Bradmer" or the
"Company") today announced its 2009 second quarter operational and financial
results.

    Operational Highlights

    During the three-month and six-month periods ended June 30, 2009, the
Company continued implementation of the decisions arising from the strategic
review of its operations announced February 17, 2009. Pursuant to the
strategic review, the Company closed its Phase III GLASS-ART Trial to further
patient enrollment, 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 at this time. The Company has
continued to execute on its cash conservation plan in the second quarter with
a further reduction of staff and clinical trial related expenses to the
minimum level required to wind down the business while continuing to evaluate
strategic options. The plan has culminated in the launch of a substantial
issuer bid whereby the Company intends to offer to purchase for cancellation
up to 8.3 million of its outstanding common shares, at a price of Cdn$0.20 per
share or approximately US$0.187 per share, pursuant to a substantial issuer
bid shortly after August 28, 2009.

    Financial Results

    Amounts in US dollars, unless specified otherwise, and results expressed
in accordance with Canadian Generally Accepted Accounting Principles (Canadian
GAAP).
    For the three months ended June 30, 2009, Bradmer recorded a net loss of
$1,762,000 or $0.13 per common share, compared to a net loss of $3,418,000 or
$0.25 per common share for the three months ended June 30, 2008. The decreased
loss in 2009 was primarily related to the decision to close the Phase III
GLASS-ART Trial to further patient enrollment. As well, during the second
quarter of 2009, the Corporation continued to focus on cost reduction
opportunities in all areas of the business in response to the credit crisis
and the downturn in the economy.
    Research and development expenses were $824,000 in the second quarter of
2009, compared to $2,565,000 in the second quarter of 2008. The decrease was
primarily due to the absence of clinical trial and manufacturing activity in
the period after management made the decision to terminate clinical trial
enrollment. The expenses incurred in the three months ended June 30, 2009
consisted primarily of one-time costs for a contract settlement with the drug
product manufacturer of $406,000 and a severance accrual for manufacturing and
clinical staff of $183,000. The Company incurred no contract settlement or
severance expenses in the quarter ended June 30, 2008.
    The Company made a decision in the second quarter of 2009 to either
abandon or return 20 patents to Duke University and to take a write-down of
$200,000 for the value of patents abandoned. These patents are not germane to
the core Neuradiab asset and reflect substantial investments that the Company
deems at this time to be unworthy of funding.
    General and administrative expenses were $734,000 in the second quarter
of 2009 compared to $905,000 in the prior year; the change reflects the
concentration to reduce expenses throughout all departments in the Company.
Compensation costs amounted to $320,000 in 2009 compared with $380,000 in
2008. Severance expenses covering the announced reduction in staff were
$81,000 in the three-month period ended June 30, 2009 compared with $15,000 in
the comparable 2008 period. The portion of stock-based compensation, a noncash
item, included in general and administrative expenses was $101,000 for the
quarter, as compared to $99,000 for the second quarter of 2008.
    Interest income decreased to $2,000 from $68,000 in the same period of
2008, due to lower cash balances and significantly lower interest rates.
    For the six-month period ended June 30, 2009, Bradmer recorded a net loss
of $3,954,000, or $0.29 per common share based on the weighted average
outstanding shares of 13,488,215. This compares to a net loss of $6,575,000,
or $0.49 per common share for the six months ended June 30, 2008 based on the
same number of outstanding shares. The decreased loss in 2009 was due to the
decision to terminate enrollment in the clinical trial and suspend all
manufacturing activities.
    Research and development expenses for the first six months of 2009 were
$2,246,000, a decrease of $2,587,000 from $4,833,000 in the same period of
2008 as clinical trial expenses were significantly lower and no manufacturing
activities were undertaken this year.
    General and administrative expenses were $1,499,000 in the first half of
2009 compared to $1,860,000 in the prior year because of a reduction in
consultants, travel and administrative support. Compensation costs amounted to
$656,000 in 2009 compared with $674,000 in 2008. Severance expenses were
$81,000 in the six-month period ended June 30, 2009 compared with $15,000 in
the comparable 2008 period. Legal fees increased to $194,000 in 2009 compared
to $100,000 in 2008 due to wind down operations and contract terminations.
Recruitment fees of $138,000 were incurred to retain clinical and
manufacturing staff in 2008, whereas the Company incurred no recruiting costs
in 2009.
    Interest income decreased to $23,000 from $159,000 in the same period of
2008, due to lower interest rates and reduced cash balances.
    As at June 30, 2009, Bradmer had available cash of $3,462,000 as compared
to cash and cash equivalents of $8,245,000 as at December 31, 2008. The
decrease was due to the operating losses incurred in the period and the
$1,390,000 reduction in accounts payable and accrued liabilities. The Company
expects that cash on hand at June 30, 2009 will be sufficient to fund the wind
down of operations through 2009. Bradmer will be reducing funding to the
minimum level consistent with its obligations to continue to monitor the
progression and safety of the patients enrolled in the trial.
    As at June 30, 2009, there were 13,488,215 common shares issued and
outstanding.
    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 has been granted Orphan Drug Status by
both the U.S. Food and Drug Administration and the European Medicines Agency.

    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.

    
    Bradmer Pharmaceuticals Inc.
    Balance Sheets
    US $

                                                     June 30,    December 31,
                                                       2009          2008
                                                  ---------------------------
    Assets                                                        (audited)

    Current
      Cash                                        $  3,461,821  $  8,245,455
      Amounts receivable                                 4,020        12,520
      Prepaid expenses and other assets                 45,315        27,158
                                                  ---------------------------
                                                     3,511,156     8,285,133

    Patent rights                                      484,067       711,054
                                                  ---------------------------
                                                  $  3,995,223  $  8,996,187
                                                  ---------------------------
                                                  ---------------------------
    Liabilities

    Current
      Accounts payable and accrued liabilities    $    455,300  $  1,594,578
                                                  ---------------------------

    Shareholders' Equity

    Capital stock                                   31,026,728    31,026,728

    Warrants                                           783,988       881,488

    Contributed surplus                              1,348,988     1,158,886

    Deficit                                        (29,619,781)  (25,665,493)
                                                  ---------------------------

                                                     3,539,923     7,401,609
                                                  ---------------------------

                                                  $  3,995,223  $  8,996,187
                                                  ---------------------------
                                                  ---------------------------



    Bradmer Pharmaceuticals Inc.
    Statements of Operations and Deficit
    US $

                      Three Months  Three Months    Six Months    Six Months
                             Ended         Ended         Ended         Ended
                           June 30,      June 30,      June 30,      June 30,
                              2009          2008          2009          2008
                      -------------------------------------------------------
    Expenses
      Research &
       development    $    823,900  $  2,564,935  $  2,245,870  $  4,833,041
      General &
       administration      734,299       905,481     1,498,503     1,860,393
      Amortization of
       patent rights        16,100        15,009        32,195        29,802
      Foreign exchange
       (gain)/loss         (10,216)          473           597        11,400
      Write-down of
       patent rights       200,000             -       200,000             -
                      -------------------------------------------------------

                         1,764,083     3,485,898     3,977,165     6,734,636

    Interest income          1,900        68,124        22,877       159,374
                      -------------------------------------------------------

    Net loss            (1,762,183)   (3,417,774)   (3,954,288)   (6,575,262)

    Deficit at
     beginning of
     period            (27,857,598)  (17,293,924)  (25,665,493)  (14,136,436)
                      -------------------------------------------------------

    Deficit at end
     of period        $(29,619,781) $(20,711,698) $(29,619,781) $(20,711,698)
                      -------------------------------------------------------
                      -------------------------------------------------------

    Basic and diluted
     net loss per
     share            $      (0.13) $      (0.25) $      (0.29) $      (0.49)
                      -------------------------------------------------------
                      -------------------------------------------------------

    Weighted average
     number of shares   13,488,215    13,488,215    13,488,215    13,488,215
                      -------------------------------------------------------
                      -------------------------------------------------------



    Bradmer Pharmaceuticals Inc.
    Statements of Cash Flows
    US $

                      Three Months  Three Months    Six Months    Six Months
                             Ended         Ended         Ended         Ended
                           June 30,      June 30,      June 30,      June 30,
                              2009          2008          2009          2008
                      -------------------------------------------------------
    Cash flows from
     operating
     activities
      Net loss for
       the period     $ (1,762,183) $ (3,417,774) $ (3,954,288) $ (6,575,262)
      Add items not
       affecting cash
        Amortization
         of patents         16,100        15,009        32,195        29,802
        Stock-based
         compensation       94,449       145,447        92,602       281,314
        Accrued
         Interest on
         short-term
         investment              -       (31,944)            -       (31,944)
        Write-down of
         patent rights     200,000                     200,000             -
                      -------------------------------------------------------

                        (1,451,634)   (3,289,262)   (3,629,491)   (6,296,090)

      Changes in
       non-cash working
       capital items
        Amounts
         receivable          7,773       103,762         8,500       125,653
        Prepaid expenses    20,220        19,854       (18,157)      (27,636)
        Accounts payable
         and accrued
         liabilities    (1,096,512)     (185,616)   (1,139,278)       51,561
                      -------------------------------------------------------

                        (2,520,153)   (3,351,262)   (4,778,426)   (6,146,512)
                      -------------------------------------------------------

    Cash flows from
     investing activities
      Investment in
       patent rights          (349)      (12,902)       (5,208)      (34,615)
      Purchase of
       short-term
       investment                -   (10,000,000)                (10,000,000)
                      -------------------------------------------------------
                              (349)  (10,012,902)       (5,208)  (10,034,615)
                      -------------------------------------------------------

    Decrease in cash
     and cash
     equivalents
     during the period  (2,520,502)  (13,364,164)   (4,783,634)  (16,181,127)

    Cash and cash
     equivalents at
     beginning of
     period              5,982,323    16,652,374     8,245,455    19,469,337
                      -------------------------------------------------------

    Cash and cash
     equivalents at
     end of period    $  3,461,821  $  3,288,210  $  3,461,821     3,288,210
                      -------------------------------------------------------
                      -------------------------------------------------------
    

    %SEDAR: 00023367E




For further information:

For further information: Bradmer Pharmaceuticals Inc., Brian Brohman,
Chief Business Officer, Phone: (888) 267-0707 x804, E-mail:
bbrohman@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