Bradmer announces 2010 second quarter financial results

TSX-V: BMR.H

TORONTO, Aug. 6 /CNW/ - Bradmer Pharmaceuticals Inc. ("Bradmer" or the "Company") today announced its 2010 second quarter financial results.

Operational Highlights

On July 29, 2010, subsequent to the quarter end, the Company announced that it had issued and sold, on a private placement basis, an aggregate 5,263,158 common shares at a price of CDN$0.095 per share, for aggregate gross proceeds to the Company of CDN$500,000 (approximately US$475,000).

The proceeds of the Offering will be used primarily for general corporate purposes. Completion of the financing is subject to the final approval of the NEX Board of the TSX Venture Exchange. The common shares issued pursuant to the Offering will be subject to a hold period expiring four months and one day after the closing date of the financing.

In connection with the financing, Wildlaw Capital Markets Inc. received a cash commission of CDN$19,250 and warrants exercisable to acquire 202,631 common shares at a price of CDN$0.095 per share, for a period of 12 months following the closing date of the transaction.

The Company has continued to execute on its cash conservation plan in the second 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 June 30, 2010, Bradmer recorded a net loss of $161,000 or $0.01 per common share based on the weighted average outstanding shares of 14,396,574 during the period, compared to a net loss of $1,762,000 or $0.13 per common share for the three months ended June 30, 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 2009.

Research and development expenses totaled $17,000 in the three months ended June 30, 2010, compared to $824,000 in the second quarter of 2009. The decrease was due to the cessation of the clinical trial and related manufacturing activities during 2009. Expenses in 2010 consisted primarily of patent fees and drug storage costs. Stock-based compensation amounted to $4,000 in 2010.

General and administrative expenses were $116,000 in the second quarter of 2010 compared to $734,000 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. Expenses in 2010 consisted primarily of consulting and legal fees, stock exchange listing fees and directors and officers' liability insurance.

For the six months ended June 30, 2010, Bradmer recorded a net loss of $278,000 or $0.03 per common share based on the weighted average outstanding shares of 10,465,936 during the period, compared to a net loss of $3,954,000 or $0.29 per common share for the six months ended June 30, 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 2009.

Research and development expenses totaled $36,000 in the six months ended June 30, 2010, compared to $2,246,000 in the same period of 2009. The decrease was due to the cessation of the clinical trial and related manufacturing activities during 2009. Expenses in 2010 consisted primarily of patent fees and drug storage costs. Stock-based compensation amounted to $9,000 in 2010.

General and administrative expenses were $224,000 in the first half of 2010 compared to $1,499,000 in the same period of 2009 as a result of the wind-down of the Company's operations. Expenses in 2010 consisted primarily of consulting and legal fees, stock exchange listing fees and directors and officers' liability insurance.

At June 30, 2010, the Company had working capital of $1,233,000, as compared to $810,000 at December 31, 2009. Bradmer had available cash of $1,226,000 at June 30, 2010, as 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 June 30, 2010, there were 14,396,574 common shares issued and outstanding, 3,311,932 warrants and 499,000 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.
    Balance Sheets
    US $

                                                      June 30,   December 31,
                                                        2010         2009
                                                   ------------ ------------
    Assets                                                         (audited)

    Current
      Cash                                         $  1,225,741 $    860,460
      Amounts receivable                                  3,981        1,944
      Prepaid expenses and other assets                  41,131       14,246
                                                   ------------ ------------
                                                   $  1,270,853 $    876,650
                                                   ------------ ------------
                                                   ------------ ------------

    Liabilities

    Current
      Accounts payable and accrued liabilities     $     38,125 $     66,225
                                                   ------------ ------------
    Shareholders' Equity

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

    Warrants                                            795,486      783,988

    Contributed surplus                               1,485,299    1,474,503

    Deficit                                          (2,802,371)  (2,524,821)
                                                   ------------ ------------

                                                      1,232,728      810,425
                                                   ------------ ------------
                                                   $  1,270,853 $    876,650
                                                   ------------ ------------
                                                   ------------ ------------


    Bradmer Pharmaceuticals Inc.
    Statements of Operations and Deficit
    US $

                      Three Months  Three Months    Six Months    Six Months
                        Ended June    Ended June    Ended June    Ended June
                          30, 2010      30, 2009      30, 2010      30, 2009
                      ------------  ------------  ------------  ------------
    Expenses

      Research &
       development    $     17,311  $    823,900  $     36,393  $  2,245,870
      General &
       administration      115,686       734,299       223,761     1,498,503
      Amortization of
       patent rights             -        16,100             -        32,195
      Write-down of
       patent rights             -       200,000             -       200,000
      Foreign exchange
       loss/(gain)          28,320       (10,216)       17,934           597
                      ------------  ------------  ------------  ------------
                           161,317     1,764,083       278,088     3,977,165

    Interest income            291         1,900           538        22,877
                      ------------  ------------  ------------  ------------
    Net loss              (161,026)   (1,762,183)     (277,550)   (3,954,288)

    Deficit at
     beginning of
     period             (2,641,345)  (27,857,598)   (2,524,821)  (25,665,493)
                      ------------  ------------  ------------  ------------
    Deficit at end
     of period        $ (2,802,371) $(29,619,781) $ (2,802,371) $(29,619,781)
                      ------------  ------------  ------------  ------------
                      ------------  ------------  ------------  ------------
    Basic and diluted
     net loss per
     share            $      (0.01) $      (0.13) $      (0.03) $     (0.29)
                      ------------  ------------  ------------  ------------
                      ------------  ------------  ------------  ------------
    Weighted average
     number of shares   14,396,574    13,488,215    10,465,936    13,488,215
                      ------------  ------------  ------------  ------------
                      ------------  ------------  ------------  ------------


    Bradmer Pharmaceuticals Inc.
    Statements of Cash Flows
    US $
                      Three Months  Three Months    Six Months    Six Months
                        Ended June    Ended June    Ended June    Ended June
                          30, 2010      30, 2009      30, 2010      30, 2009
                      ------------  ------------  ------------  ------------
    Cash flows from
     operating
     activities
      Net loss for
       the period     $   (161,026) $ (1,762,183) $   (277,550) $ (3,954,288)
      Add items not
       affecting cash
        Amortization
         of patents              -        16,100             -        32,195
        Write-down of
         patent rights           -       200,000             -       200,000
        Stock-based
         compensation        5,238        94,449        10,796        92,602
                      ------------  ------------  ------------  ------------

                          (155,788)   (1,451,634)     (266,754)   (3,629,491)

      Changes in
       non-cash
       working
       capital items
        Amounts
         receivable          4,548         7,773        (2,037)        8,500
        Prepaid
         expenses           17,396        20,220       (26,885)      (18,157)
        Accounts
         payable and
         accrued
         liabilities        17,147    (1,096,512)      (28,100)   (1,139,278)
                      ------------  ------------  ------------  ------------

                          (116,697)   (2,520,153)     (323,776)   (4,778,426)
                      ------------  ------------  ------------  ------------

    Cash flows from
     investing
     activities
      Investment in
       patent rights             -          (349)            -        (5,208)
                      ------------  ------------  ------------  ------------
                                 -          (349)            -        (5,208)
                      ------------  ------------  ------------  ------------

    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             -
                      ------------  ------------  ------------  ------------

    (Decrease) /
     Increase in cash
     during the
     period)              (116,697)   (2,520,502)      365,281    (4,783,634)

    Cash and cash
     equivalents at
     beginning of
     period              1,342,438     5,982,323       860,460     8,245,455
                      ------------  ------------  ------------  ------------

    Cash and cash
     equivalents at
     end of period       1,225,741  $  3,461,821  $  1,225,741     3,461,821
                      ------------  ------------  ------------  ------------
                      ------------  ------------  ------------  ------------
    

%SEDAR: 00023367E

SOURCE BRADMER PHARMACEUTICALS INC.

For further information: For further information: Bradmer Pharmaceuticals Inc., Alan Ezrin, PhD, President & Chief Executive Officer, Phone: (305) 929-3125, 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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