Bradmer announces 2010 first quarter financial results

TSX: BMR

TORONTO, May 13 /CNW/ - Bradmer Pharmaceuticals Inc. ("Bradmer" or the "Company") today announced its 2010 first quarter financial results.

Operational Highlights

On March 26, 2010, the Company issued and sold, on a private placement basis, an aggregate of 8,369,947 common shares, at a price of $0.095 per share, for aggregate gross proceeds to the Company of approximately Cdn$795,000 (the "Offering"). The proceeds of the Offering will be used primarily for working capital and general corporate purposes.

In connection with the Offering, Wildlaw Capital Markets Inc. received a cash commission equal to 5% of the gross proceeds of the Offering and warrants exercisable to acquire 418,497 common shares at a price of $0.095 per share for a period of 24 months following the closing date of the Offering.

The common shares of Bradmer were delisted from the Toronto Stock Exchange as of the close of business on March 26, 2010, due to the Company's failure to meet applicable continued listing standards. The common shares of Bradmer were listed on the NEX Board of the TSX Venture Exchange on March 29, 2010.

The Company has continued to execute on its cash conservation plan in the first quarter after the termination of all staff and the elimination of clinical trial related expenses. Dr. Alan Ezrin and Paul Van Damme continue to serve as Chief Executive Officer and Chief Financial Officer, respectively, on a part-time consultancy basis.

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 March 31, 2010, we recorded a net loss of $117,000 or $0.02 per common share based on the weighted average outstanding shares of 6,491,624 during the period, compared to a net loss of $2,192,000 or $0.16 per common share for the three months ended March 31, 2009 based on the weighted average outstanding shares of 13,488,215. The decreased loss in 2010 was due to the wind-down of the Company's lead clinical program, Neuradiab, in preparation for the planned dormancy of the Company as well as the reduction in the Company's staffing and administrative functions during this period.

Research and development expenses totalled $19,000 in the three months ended March 31, 2010, compared to $1,422,000 in the first quarter of 2009. The decrease was primarily due to the complete cessation of the clinical trial and related manufacturing activities during 2009. Expenses in 2010 consisted of patent fees and drug storage costs. Stock-based compensation amounted to $5,000 in 2010.

General and administrative expenses were $108,000 in the first quarter of 2010 compared to $764,000 in the same period of 2009 as a result of the wind-down of the Company's operations. As at December 31, 2009, all employees had been terminated and their employment contracts satisfied. The Chief Executive Officer continues to serve on a consultancy basis without compensation and the Chief Financial Officer continues to serve on a consultancy basis and is paid a per diem. Expenses in 2010 consisted primarily of consulting and legal fees, administrative support and directors and officers' liability insurance.

At March 31, 2010, we had working capital of $1,388,000, as compared to $810,000 at December 31, 2009. We had available cash of $1,342,000 at March 31, 2010, compared to cash of $860,000 at December 31, 2009. The increase was due to the private placement financing partially offset by the operating loss incurred in the period and the reduction in accounts payable and accrued liabilities.

As at March 31, 2010, there were 14,369,574 common shares issued and outstanding, 3,311,932 warrants and 599,000 stock options.

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 (GBM). Neuradiab was granted Orphan Drug Status by both the U.S. Food and Drug Administration and the European Medicines Agency. Bradmer suspended enrolment of primary GBM patients in its Phase III multi-center clinical trial of Neuradiab in the first quarter of 2009. The Company seeks a change in business during the coming months.

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 news 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 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.

Interim Financial Statements

(Expressed in United States Dollars)

March 31, 2010

To the Shareholders of

Bradmer Pharmaceuticals Inc.

Notice to Reader:

Management has prepared the accompanying unaudited financial statements of Bradmer Pharmaceuticals Inc. for the three-month period ended March 31, 2010 and the Audit Committee of the Company has approved them. The Company's independent auditors have not reviewed these statements.

    
    Bradmer Pharmaceuticals Inc.
    Balance Sheets
    (Expressed in United States Dollars)

    -------------------------------------------------------------------------
                                                     March 31    December 31
                                           Note        2010          2009
    -------------------------------------------------------------------------
                                                                   (audited)
    Assets

    Current
      Cash                                        $  1,342,438  $    860,460
      Amounts receivable                                 8,529         1,944
      Prepaid expenses                                  58,527        14,246
    -------------------------------------------------------------------------

                                                  $  1,409,494  $    876,650
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities

    Current
      Accounts payable and accrued
       liabilities                                $     20,978  $     66,225
    -------------------------------------------------------------------------

    Shareholders' Equity

    Capital stock                             4      1,754,314     1,076,755

    Warrants                                  6        795,486       783,988

    Contributed surplus                       7      1,480,061     1,474,503

    Deficit                                         (2,641,345)   (2,524,821)
    -------------------------------------------------------------------------

                                                     1,388,516       810,425
    -------------------------------------------------------------------------

                                                  $  1,409,494  $    876,650
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Bradmer Pharmaceuticals Inc.
    Statements of Operations and Deficit
    For the Three Months Ended March 31
    (Expressed in United States Dollars)
    (unaudited)

    -------------------------------------------------------------------------
                                                        2010          2009
    -------------------------------------------------------------------------

    Expenses
      Research and development                    $     19,082  $  1,421,972
      General and administrative                       108,075       764,203
      Amortization of patents                                -        16,095
      Foreign exchange (gain)/loss                     (10,386)       10,813
    -------------------------------------------------------------------------

                                                       116,771     2,213,083

    Interest income                                        247        20,978
    -------------------------------------------------------------------------

    Net loss                                          (116,524)   (2,192,105)

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

    Deficit at end of period                      $ (2,641,345) $(27,857,598)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted net loss per share          $      (0.02) $      (0.16)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average number of shares outstanding    6,491,624    13,488,215
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Bradmer Pharmaceuticals Inc.
    Statements of Cash Flows
    For the Three Months Ended March 31
    (Expressed in United States Dollars)
    (unaudited)

    -------------------------------------------------------------------------
                                                        2010          2009
    -------------------------------------------------------------------------

    Cash flows from operating activities
      Loss for the period                         $   (116,524) $ (2,192,105)
      Add items not affecting cash
        Amortization of patents                              -        16,095
        Stock-based compensation/(recovery)              5,558        (1,847)
    -------------------------------------------------------------------------

                                                      (110,966)   (2,177,857)

      Changes in non-cash working capital items

        Amounts receivable                              (6,585)          727
        Prepaid expenses                               (44,281)      (38,377)
        Accounts payable and accrued liabilities       (45,247)      (42,766)
    -------------------------------------------------------------------------

                                                      (207,079)   (2,258,273)
    -------------------------------------------------------------------------

    Cash flows from investing activities
      Investment in patent rights                            -        (4,859)
    -------------------------------------------------------------------------

    Cash flows from financing activities
      Issuance of capital stock, net of
       share issue costs                               677,559             -
      Issuance of warrants, net of issue costs          11,498             -
    -------------------------------------------------------------------------

                                                       689,057             -
    -------------------------------------------------------------------------

    Increase/(Decrease) in cash during the period      481,978    (2,263,132)
    -------------------------------------------------------------------------

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

    Cash and cash equivalents at end of period    $  1,342,438  $  5,982,323
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Bradmer Pharmaceuticals Inc.
    Notes to Financial Statements
    March 31, 2010
    (Expressed in United States Dollars)
    (unaudited)
    -------------------------------------------------------------------------

    1.  NATURE OF OPERATIONS

        Until the third quarter of 2009, Bradmer Pharmaceuticals Inc. ("BMR"
        or the "Company") was focused on developing proprietary drugs to
        treat cancer. The Company did not earn revenues from its drug
        candidates and was therefore considered to be in the development
        stage. Given the current economic environment and changes to its
        relationship and agreement with its clinical research organization,
        the Company completed the wind down of its operations including the
        termination of its Phase III clinical trial for Neuradiab. The
        Company terminated all of its staff complement in 2009 to conserve
        cash.

        The Company is currently in dormancy and is seeking a business
        transaction for the unencumbered cash. There are currently no
        substantial outstanding bills or contract related liabilities and the
        Company envisions minimal spending until the Company enters into a
        transaction.

        On March 26, 2010, the Company issued and sold, on a private
        placement basis, 8,369,947 common shares, at a price of CDN$0.095
        (approximately US$0.092) per share, for gross proceeds of
        approximately CDN$795,000 (approximately US$773,000). After share
        issue costs, net cash proceeds were $678,000. The Company will use
        the proceeds of the financing primarily for working capital and
        general corporate purposes.

        The common shares of Bradmer were delisted from the Toronto Stock
        Exchange on March 26, 2010, and were listed on the NEX Board of the
        TSX Venture Exchange on March 29, 2010.

    2.  SIGNIFICANT ACCOUNTING POLICIES

        These unaudited interim financial statements are expressed in United
        States dollars and do not include all of the disclosures required by
        Canadian generally accepted accounting principles for annual
        financial statements and, accordingly, should be read in conjunction
        with the Company's audited financial statements.  These financial
        statements have been prepared using accounting policies consistent
        with the Company's audited annual financial statements and notes
        thereto for the year ended December 31, 2009.

        Recent Accounting Pronouncements Issued and Not Yet Applied

        In February 2008, the Canadian Accounting Standards Board confirmed
        that publicly accountable entities would be required to adopt
        International Financial Reporting Standards ("IFRS"). The Company
        must prepare its interim and annual financial statements in
        accordance with IFRS for periods beginning on January 1, 2011. The
        Company has formally established an IFRS project team which is lead
        by BMR's Chief Financial Officer. The team is currently studying the
        impacts of IFRS on the Company's accounting policies, information
        systems, internal controls over financial reporting and contractual
        arrangements and covenants. The initial assessment of the process
        indicates that the most significant areas of difference applicable to
        the Company include lease accounting, stock-based compensation and
        the more extensive presentation and disclosure requirements under
        IFRS.

    3.  PATENT RIGHTS

        ---------------------------------------------------------------------
                                                     March 31    December 31
                                                       2010          2009
        ---------------------------------------------------------------------
                                                                  (audited)

        Balance, beginning of period              $          -  $    711,054
        Additions                                            -         9,208
        Amortization                                         -       (47,397)
        Write-down of patent rights                          -      (672,865)
        ---------------------------------------------------------------------

        Balance, end of period                    $          -  $          -
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        As at March 31, 2010 the total cost of the patent rights is $Nil
        (2009 - $Nil) and the accumulated amortization is $Nil (2009 - $Nil).
        Given the uncertainty surrounding the future of the Company, the
        remaining net book value of the patent rights of approximately
        $673,000 was written off in 2009 to reflect the impairment in value
        of these patents.

        Under a license agreement with Duke University, North Carolina, U.S.A
        ("Duke"), the Company holds an exclusive license to a proprietary
        treatment developed at Duke University Medical Center for a
        particularly aggressive form of brain cancer.  The licensed treatment
        includes the rights to thirty-one issued patents and twenty-eight
        patents which are pending in the United States and in other
        jurisdictions. Under the terms of the Agreement, the Company must
        pay annual license maintenance fees of $50,000 on September 26.  On
        September 14, 2009, Duke agreed to postpone the timing of payment of
        the 2009 fee until February 28, 2010.  The parties have further
        agreed to postpone the timing of this fee until May 30, 2010 and to
        reassess the circumstances which may result in a full waiver of this
        payment, a further deferral of the payment, or agreement on alternate
        payment terms at that time.

        As at March 31, 2010, the Company has consolidated 10 issued patents
        and 14 pending patent applications not including Patent Cooperation
        Treaty applications that have entered National phase review.

    4.  CAPITAL STOCK
        ---------------------------------------------------------------------

                                                       Number       Amount
        ---------------------------------------------------------------------

        Balance, December 31, 2008                  13,488,215  $ 31,026,728
        Reduction of stated capital(i)                       -   (28,616,848)
        Repurchase of common shares(ii)              7,461,588    (1,333,126)
        ---------------------------------------------------------------------

        Balance, December 31, 2009                   6,026,627  $  1,076,755
        Shares issued for private placement(iii)     8,369,947       773,120
        Share issue costs(iii)                               -       (84,063)
        Value ascribed to agent's warrants(iii)              -       (11,498)
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------
        Balance, March 31, 2010                     14,396,574  $  1,754,314
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        (i)   Stated capital reduction

              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 account.

        (ii)  Substantial issuer bid

              On July 17, 2009, the Company announced that it was proceeding
              with a substantial issuer bid pursuant to which the Company
              would offer to purchase for cancellation up to 8,300,000 of its
              outstanding common shares at a price of CDN$0.20 (approximately
              US$0.183) per share or an aggregate amount of CDN$1,660,000.

              The Offer expired on August 28, 2009 and on September 8, 2009
              the Company repurchased for cancellation 7,461,588 shares
              tendered to the Offer. This represented approximately 55.3% of
              Bradmer's issued and outstanding common shares as of
              September 8, 2009. The shares were purchased for approximately
              $1,366,000 exclusive of approximately $88,000 in related
              transaction costs paid out of cash on hand. The aggregate
              amount of approximately $1,333,000 was allocated to capital
              stock. The excess of the cost of redemption over the average
              stated capital amounted to approximately $121,000 and was
              debited to contributed surplus (see Note 7).

        (iii) Private placement financing

              On March 26, 2010, the Company issued and sold, on a private
              placement basis, 8,369,947 common shares, at a price of
              CDN$0.095 (approximately US$0.092) per share, for gross
              proceeds of approximately CDN$795,000 (approximately
              US$773,000). After share issue costs, net cash proceeds were
              $689,000. The Company will use the proceeds of the financing
              primarily for working capital and general corporate purposes.

              In connection with the financing, Wildlaw Capital Markets Inc.
              received a cash commission of $38,656, being 5% of the gross
              proceeds of the financing. It also received warrants
              exercisable to acquire 418,497 common shares, being that number
              of common shares as is equal to 5% of the number of common
              shares sold under the financing, at a price of $0.095 per
              share, for a period of 24 months following the closing date of
              the private placement.

    5.  STOCK OPTIONS

        In May 2007, the Company amended its Stock Option Plan. Each option
        granted allows the holder to purchase one common share at an exercise
        price equal to the five-day average closing price of the Company's
        common shares on The Toronto Stock Exchange (or such other exchange
        on which the common shares are then listed) prior to the grant of the
        option. At the Annual and Special Meeting of Shareholders on May 8,
        2008, the shareholders approved a resolution to increase the
        aggregate number of common shares reserved for issuance pursuant to
        the Stock Option Plan from 10% to 12.5% of the total number of common
        shares outstanding from time to time. This action increased the
        options available for issuance by 337,000 shares.

        As a result of the substantial issuer bid completed in September
        2009, the number of common shares outstanding was reduced to
        6,026,627. In order to remain in compliance with the Stock Option
        Plan ceiling of 12.5% of shares outstanding, option holders agreed
        voluntarily to surrender 726,990 options for cancellation.

        Options granted have a maximum term of ten years and generally vest
        over a period of up to three years. As at March 31, 2010, there were
        approximately 1,200,000 (December 31, 2009 - 1,000) options available
        for grant.

        The Company has issued stock options to acquire common shares as
        follows:

        ---------------------------------------------------------------------
                                 March 31, 2010          December 31, 2009
        ---------------------------------------------------------------------
                                                             (audited)

                                          Weighted                  Weighted
                                           Average                   Average
                               Number     Exercise      Number      Exercise
                                 of         Price         of          Price
                              Options       (CDN)      Options        (CDN)
        ---------------------------------------------------------------------
        Outstanding,
         beginning of year    752,500       $ 0.28    1,231,990       $ 2.09
        Issued                      -       $    -      655,000       $ 0.16
        Forfeited/cancelled  (153,500)      $ 0.48   (1,134,490)      $ 2.28
        ---------------------------------------------------------------------
        Outstanding, end
         of year              599,000       $ 0.23      752,500       $ 0.28
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------
        Exercisable, end
         of year              580,667       $ 0.21      714,167       $ 0.25
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------


        ---------------------------------------------------------------------
                                             Weighted
                                              Average
                                  Weighted   Remaining              Weighted
                                   Average  Contractual              Average
        Exercise        Number    Exercise     Life       Number    Exercise
        Price        Outstanding    Price     (years)  Exercisable    Price
        ---------------------------------------------------------------------
        $0.14-$0.16    555,000     $ 0.16       9.2      555,000     $ 0.16
        $0.25-$2.65     44,000     $ 1.18       7.4       25,667     $ 1.36
        ---------------------------------------------------------------------
                       599,000     $ 0.23       9.1      580,667     $ 0.21
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        The fair value of the stock-based compensation was estimated at the
        grant date or the date when it became measurable using the Black-
        Scholes option-pricing model under the following weighted average
        assumptions:

        ---------------------------------------------------------------------
                                                     March 31    December 31
                                                       2010          2009
        ---------------------------------------------------------------------
                                                                  (audited)

        Dividend yield                                   0%           0%
        Weighted average risk-free interest rates      1.35%        1.90%
        Volatility factor of the expected market
         price of the Company's common shares           116%         111%
        Weighted average expected life of options     5 years      5 years


        The Company has assumed no forfeiture rate as adjustments for actual
        forfeitures are made in the year they occur. The resulting weighted
        average grant date fair value per share of options issued in the
        three month period ended March 31, 2010 was n/a (December 31, 2009 -
        $0.13). The total stock-based compensation expense for the period was
        $5,558 (December 31, 2009 - $339,352).

        The above options were not included in the computation of diluted net
        loss per share as they are anti-dilutive.

    6.  WARRANTS

        ---------------------------------------------------------------------
                                                     March 31    December 31
                                                       2010          2009
        ---------------------------------------------------------------------
                                                                  (audited)

        Balance, beginning of period              $    783,988  $    881,488
        Value ascribed to expired broker warrants            -       (97,500)
        Value ascribed to agent's warrants              11,498             -
        ---------------------------------------------------------------------

        Balance, end of period                    $    795,486  $    783,988
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        The Company had issued warrants to acquire common shares as follows:

        ---------------------------------------------------------------------
                                 March 31, 2010          December 31, 2009
        ---------------------------------------------------------------------
                                                             (audited)

                                          Weighted                  Weighted
                                           Average                   Average
                               Number     Exercise      Number      Exercise
                                 of         Price         of          Price
                              Warrants      (CDN)      Warrants       (CDN)
        ---------------------------------------------------------------------
        Outstanding,
         beginning of
         period              2,893,435      $ 5.60    3,240,647       $ 5.43
        Expired                      -           -     (347,212)      $(4.00)
        Issued                 418,497      $0.095            -            -
        ---------------------------------------------------------------------
        Outstanding,
         end of period       3,311,932      $ 4.90    2,893,435       $ 5.60
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        The Company had the following warrants outstanding at March 31, 2010:

        ---------------------------------------------------------------------
        Number of Warrants            Exercise Price          Expiry Date
        ---------------------------------------------------------------------
        2,893,435                     CDN $ 5.60              June 22, 2011
        418,497                       CDN $ 0.095             March 26, 2012
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        The above warrants were not included in the computation of diluted
        net loss per share as they are anti-dilutive.

    7.  CONTRIBUTED SURPLUS

        ---------------------------------------------------------------------
                                                     March 31    December 31
                                                       2010          2009
        ---------------------------------------------------------------------
                                                                  (audited)

        Balance, beginning of year                $  1,474,503  $  1,158,886
        Stock-based compensation (Note 5)                5,558       339,352
        Value ascribed to expired broker
         warrants (Note 6)                                   -        97,500
        Excess of the cost of redemption over
         the average stated capital (Note 4(ii))             -      (121,235)
        ---------------------------------------------------------------------
        Balance, end of year                      $  1,480,061  $  1,474,503
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

    8.  RELATED PARTY TRANSACTIONS

        Transactions with related parties are incurred in the normal course
        of business and are measured at the exchange amount which is the
        amount of consideration established and approved by the related
        parties. Such transactions are conducted under normal business terms.
        Related party transactions have been listed below.

        During the three-month period, the Company incurred legal fees of
        approximately $65,000 (2009 - $85,000) of which $45,000 was related
        to the private placement financing, to a law firm in which a director
        of the Company is a partner. Included in accounts payable and accrued
        liabilities as at March 31, 2010 is $Nil (December 31, 2009 - $2,000)
        owing to this firm.

    9.  FINANCIAL INSTRUMENTS

        The carrying value of cash and cash equivalents, amounts receivable,
        accounts payable and accrued liabilities approximates fair value due
        to the relatively short-term maturities of these instruments.

    10. CAPITAL RISK MANAGEMENT

        The Company's primary objective when managing capital is to maintain
        its ability to continue as a going concern in order to provide
        returns for shareholders and benefits for other stakeholders. The
        Company does not plan to raise additional funds through the issuance
        of equity and warrants, but will continue to explore business
        development opportunities.

        The Company includes equity, comprised of issued common shares,
        warrants, contributed surplus and deficit, in the definition of
        capital.

        The Company is not subject to externally imposed capital requirements
        and there has been no change with respect to the overall capital risk
        management strategy during the period ended March 31, 2010.

    11. FINANCIAL RISK MANAGEMENT

        The Company is exposed to a variety of financial risks by virtue of
        its activities: market risk (including currency risk, credit risk and
        interest rate risk) and liquidity risk. The overall risk management
        program focuses on the unpredictability of financial markets and
        seeks to minimize potential adverse effects on financial performance.

        Risk management is carried out by the finance department under
        policies approved by the Board of Directors. This department
        identifies and evaluates financial risks in close cooperation with
        management. The finance department is charged with the responsibility
        of establishing controls and procedures to ensure that financial
        risks are mitigated in accordance with the approved policies.

        (a) Market Risk

            (i)   Currency Risk

                  The Company operates internationally and is exposed to
                  foreign exchange risk from various currencies, primarily
                  Canadian dollars. Foreign exchange risk arises from
                  purchase transactions as well as recognized financial
                  assets and liabilities denominated in foreign currencies.

                  The Company's main objective in managing its foreign
                  exchange is to maintain Canadian cash on hand to support
                  Canadian forecasted cash flows over a 12-month horizon. To
                  achieve this objective the Company monitors forecasted cash
                  flows in foreign currencies and attempts to mitigate the
                  risk by modifying the nature of cash held or by entering
                  into foreign exchange contracts with Canadian chartered
                  banks. Foreign exchange contracts are only entered into for
                  purposes of managing foreign exchange risk and not for
                  speculative purposes.

                  Balances in foreign currencies at March 31, 2010 are as
                  follows:

                  -----------------------------------------------------------
                                                                     CDN$
                  -----------------------------------------------------------

                  Cash                                          $    540,000
                  Accounts payable and accrued liabilities      $     12,000
                  -----------------------------------------------------------

                  Fluctuations in the Canadian dollar exchange rate could
                  have a significant impact on the Company's results from
                  operations. However, they would not impair or enhance the
                  ability of the Company to pay its foreign currency-
                  denominated expenses, as cash and accounts payable and
                  accrued liabilities would be similarly affected.

            (ii)  Credit Risk

                  Credit risk is the risk of a financial loss to the Company
                  if a customer or counterparty to a financial instrument
                  fails to meet its contractual obligation.

                  The maximum exposure to credit risk of the Company at
                  period-end is the carrying value of its cash and cash
                  equivalents.

                  The Company manages credit risk by maintaining bank
                  accounts with Schedule I banks in Canada and major banks in
                  the United States and investing only in cash and cash
                  equivalents and short-term investments. Cash totaling
                  $1.1 million (December 31, 2009 - $0.7 million) is held
                  with one Canadian chartered bank. The Company's cash is not
                  subject to any external restrictions.

            (iii) Interest Rate Risk

                  Interest rate risk is the risk that the future cash flows
                  of a financial instrument will fluctuate because of changes
                  in market interest rates.

                  Financial assets and financial liabilities with variable
                  interest rates expose the Company to cash flow interest
                  rate risk. The Company's cash and cash equivalents and
                  short-term investments earn interest at market rates.

                  The Company manages its interest rate risk by maximizing
                  the interest income earned on excess funds while
                  maintaining the liquidity necessary to conduct operations
                  on a day-to-day basis. The Company's policy limits the
                  investing of excess funds to liquid government and
                  corporate debt instruments having a single "A" credit
                  rating or greater.

                  Fluctuations in market rates of interest do not have a
                  significant impact on the Company's results of operations
                  as the rate of interest paid is based primarily on the 90-
                  day U.S. Treasury bill rate. A 1.0% increase in interest
                  rates would impact the Company's annual interest income by
                  approximately $8,000.

        (b) Liquidity Risk

            Liquidity risk is the risk that the Company will not be able to
            meet its obligations as they fall due.

            The Company manages its liquidity risk by forecasting cash flows
            from operations, anticipated investing and financing activities.
            Senior management is also actively involved in the review and
            approval of planned expenditures.

            As at March 31, 2010, the Company has accounts payable and
            accrued liabilities of $21,000 due within 12 months and has cash
            of $1,181,000 to meet its current obligations. As a result, the
            Company has minimal liquidity risk at this time.
    

%SEDAR: 00023367E

SOURCE BRADMER PHARMACEUTICALS INC.

For further information: For further information: Bradmer Pharmaceuticals Inc., Alan Ezrin, PhD, President & Chief Executive Officer, Phone: (305) 321-4333, E-mail: aezrin@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

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BRADMER PHARMACEUTICALS INC.

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