Bradmer announces 2007 second quarter operational and financial results



    TSX: BMR

    TORONTO, Aug. 8 /CNW/ - Bradmer Pharmaceuticals Inc., a clinical oncology
company specializing in the development and commercialization of cancer
therapies, today announced its 2007 second quarter operational and financial
results.

    Operational Highlights and Outlook

    During the three-month period ended June 30, 2007, the Company advanced
its preparations for the proposed multi-center Phase III trial of its lead
drug, Neuradiab, a treatment for newly diagnosed glioblastoma multiforme
(GBM). The Company is working with more than 30 of the leading GBM treatment
centers in the U.S. which have provided indications of interest for
participation in the proposed trial.
    Bradmer is currently in consultation with the United States Food & Drug
Administration (FDA) to obtain permission to initiate a multi-center Phase III
trial for the adjuvant use of Neuradiab in the management of GBM. Subject to
the receipt of regulatory approvals, the Company intends to implement a
randomized, two-arm multi-center study with more than 300 patients in each arm
comparing the survival of patients that receive the current standard of care
to the standard of care in combination with Neuradiab. Assuming the receipt of
requisite regulatory approvals, Bradmer plans to initiate this trial in late
2007.
    "With the successful completion of our recent financing we are well
positioned from a capital perspective to execute our clinical plans to conduct
a landmark trial in the treatment of brain cancer. The pending confirmatory
trial is one of the largest and most important GBM trials ever proposed, and
we are proceeding with care under the guidance of industry-leading experts,"
said Dr. Alan M. Ezrin, Chief Executive Officer of Bradmer. "We will continue
the evaluation of Neuradiab for the treatment of newly diagnosed GBM in a
rigorous clinical setting. The drug's molecular target, tenascin, is virtually
omnipresent in GBM cell populations and is linked closely with their
proliferation. Due to these characteristics, experts have hypothesized that
the targeted delivery of I-131 via Neuradiab could be a beneficial therapy for
the broad GBM population."

    Financial Highlights

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

    For the three-month period ended June 30, 2007, Bradmer recorded a net
loss of $1,781,359, or $0.21 per common share, compared with a net loss of
$670,671 or $0.09 per common share for the three-month period ended June 30,
2006. For the six-month period ended June 30, 2007, Bradmer recorded a net
loss of $3,634,856, or $0.45 per common share compared with a net loss of
$1,289,102, or $0.17 per common share for the six-month period ended June 30,
2006. The increased losses during the 2007 periods were primarily related to
higher planned research and development spending with regard to the Company's
lead clinical program, Neuradiab.
    Research and development expenses totaled $1,092,549 and $2,365,469,
respectively, for the three- and six-month periods ended June 30, 2007,
compared with $323,300 and $658,810 for the corresponding periods in 2006.
Research and development expenses incurred in 2007 were primarily related to
amounts paid under drug manufacturing contracts, as well as amounts paid to
clinical and regulatory collaborators.
    Management wage expenses, including payroll taxes, of $291,166 and
$537,220 were recorded during the respective three- and six-month periods
ended June 30, 2007 in accordance with employment contracts compared with
management wage expenses of $155,097 and $305,765 for the corresponding
periods in 2006. Current year management wages were higher due primarily to an
expanded team.
    Travel related expenses totaled $139,264 and $260,666, respectively, for
the three- and six-month periods ended June 30, 2007, compared with $68,234
and $85,549 for the respective prior year periods. The higher travel expenses
incurred in 2007 were primarily related to intensified team efforts with
regard to clinical development, manufacturing and investor relations.
    Office and administrative expenses of $108,248 and $239,254 during the
respective three- and six-month periods ended June 30, 2007 included charges
relating to, among other things, facilities, administrative staffing,
communications, investor relations and insurance. Office and administrative
expenses for the corresponding periods in 2006 totaled $78,713 and $146,999,
respectively. Additionally, professional fee expenses of $110,743 and
$183,019, respectively, were incurred during the three- and six-month periods
ended June 30, 2007, compared with $133,693 and $151,664 incurred during the
corresponding periods in 2006.
    Non-cash stock-based compensation charges totaled $106,026 and $189,703
for the three- and six-month periods ended June 30, 2007, resulting from the
issuance of employee options. Such stock-based compensation charges totaled
$8,733 and $88,786 in the comparative periods ended June 30, 2006.
    Operational expenses were offset by interest income earned on short-term
investments of $78,428 and $163,919, respectively, during the three- and
six-month periods ended June 30, 2007, as compared with $115,351 and $166,723
for the comparative prior year three- and six-month periods.
    As at June 30, 2007, Bradmer had available cash and cash equivalents of
$24,197,265 compared with $8,813,427 at December 31, 2006. The increase was
related to proceeds of the public offering closed on June 22, 2007, which
yielded gross proceeds of Cdn$23.1 million. After deducting cash-based share
issue costs and converting to US dollars, net proceeds totaled $19.6 million.
It is anticipated that cash on hand at June 30, 2007 will be sufficient to
fund Company operations at least through 2009, inclusive of clinical trial
costs and infrastructure costs during such period.
    As at June 30, 2007, there were 13,568,215 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.

    Neuradiab Treatment

    Neuradiab is a monoclonal antibody, conjugated to radioactive iodine,
used to treat glioblastoma multiforme (GBM), the most common and most advanced
form of brain cancer. Neuradiab delivers tumor-killing radiation specifically
to residual brain tumor cells after surgery, with minimal impact on normal
brain tissue. During the course of development at Duke University, over
US$60 million in research grants and related support has produced a series of
Phase I and Phase II clinical trials on Neuradiab. Approximately 200 brain
cancer patients, including over 160 with GBM, have been treated with
Neuradiab, and survival benefits have significantly exceeded historical
controls in each completed trial.
    Each year up to 30,000 new cases of GBM are diagnosed in the world's
seven largest healthcare markets. The current standard of care for GBM
patients is surgical resection followed by radiation and temozolomide. GBM
tumors typically have infiltrating edges that are very difficult to completely
remove with surgery. The Neuradiab therapy is delivered directly into the
surgical resection cavity in a separate procedure after the initial surgery.
Neuradiab delivers a concentrated level of radiation specifically to the
remaining cancer cells by targeting tenascin. Tenascin is a protein
over-expressed in 99% of GBM cells but absent from normal brain cells.

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

    Bradmer Pharmaceuticals is a biopharmaceutical company focused on the
development and commercialization of new and innovative cancer therapies.
Bradmer's 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. To date, over US$60 million in grants
and related support has driven research and development of the licensed
treatment, which has been delivered to over 200 patients with promising
results and has completed Phase II clinical trials at Duke University. Bradmer
is currently in the process of organizing a pivotal multi-center clinical
trial of the licensed treatment. 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
    (Expressed in United States Dollars)
    (unaudited)
    -------------------------------------------------------------------------
                                                   June 30       December 31
                                                     2007           2006
    -------------------------------------------------------------------------
                                                                  (audited)

    Assets

    Current
      Cash                                      $ 24,197,265    $  8,813,427
      Amounts receivable                             116,504          77,085
      Prepaid expenses                                45,587          10,632
    -------------------------------------------------------------------------
                                                  24,359,356       8,901,144
    Patent rights                                    552,015         469,817
    -------------------------------------------------------------------------
                                                $ 24,911,371    $  9,370,961
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities

    Current
      Accounts payable and accrued liabilities  $    781,780    $  1,384,367
    -------------------------------------------------------------------------

    Shareholders' Equity

    Capital stock                                 31,210,728      12,504,066

    Contributed surplus                              373,072         183,369

    Warrants                                         881,488               -

    Deficit                                       (8,335,697)     (4,700,841)
    -------------------------------------------------------------------------
                                                  24,129,591       7,986,594
    -------------------------------------------------------------------------
                                                $ 24,911,371    $  9,370,961
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Bradmer Pharmaceuticals Inc.
    Interim Statements of Operations and Deficit
    (Expressed in United States Dollars)
    (unaudited)
    -------------------------------------------------------------------------
                             Six Months Ended           Three Months Ended
                                 June 30                     June 30
                            2007          2006          2007          2006
    -------------------------------------------------------------------------

    Expenses
      Stock based
       compensation        189,703        88,786       106,026         8,733
      Management fees      537,220       305,765       291,166       155,097
      Professional fees    183,019       151,664       110,743       133,693
      Office and
       administrative      239,254       146,999       108,248        78,713
      Research expenses  2,365,469       658,810     1,092,549       323,300
      Travel               260,666        85,549       139,264        68,234
      Amortization of
       patents              23,444        18,252        11,791        18,252
    -------------------------------------------------------------------------
                         3,798,775     1,455,825     1,859,787       786,022
    Interest income        163,919       166,723        78,428       115,351
    -------------------------------------------------------------------------
    Net loss            (3,634,856)   (1,289,102)   (1,781,359)     (670,671)

    Deficit at
     beginning of
     period             (4,700,841)     (255,223)   (6,554,338)     (873,654)
    -------------------------------------------------------------------------
    Deficit at end of
     period            $(8,335,697)  $(1,544,325)  $(8,335,697)  $(1,544,325)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted
     loss per share    $     (0.45)  $     (0.17)  $     (0.21)  $     (0.09)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average
     number of shares    8,069,091     7,780,816     8,353,674     7,781,026
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Bradmer Pharmaceuticals Inc.
    Interim Statements of Cash Flows
    (Expressed in United States Dollars)
    (unaudited)
    -------------------------------------------------------------------------
                             Six Months Ended           Three Months Ended
                                 June 30                     June 30
                            2007          2006          2007          2006
    -------------------------------------------------------------------------

    Cash flows from
     operating
     activities
      Net loss for
       the period      $(3,634,856)  $(1,289,102)  $(1,781,359)  $  (670,671)
      Add items not
       affecting cash
        Amortization
         of patents         23,444        18,252        11,791        18,252
        Stock-based
         compensation      189,703        88,786       106,026         8,733
    -------------------------------------------------------------------------
                        (3,421,709)   (1,182,064)   (1,663,542)     (643,686)
      Changes in non-
       cash working
       capital items
        Amounts
         receivable        (39,419)      (45,305)      (40,107)      (35,480)
        Prepaid expenses   (34,955)      (40,203)       15,778        16,717
        Accounts payable
         and accrued
         liabilities      (602,587)     (404,853)      159,028       (86,534)
    -------------------------------------------------------------------------
                        (4,098,670)   (1,672,425)   (1,528,843)     (748,983)
    -------------------------------------------------------------------------

    Cash flows from
     investing
     activities
      Investment in
       patent rights      (105,642)     (258,494)       (6,998)       15,829
      -----------------------------------------------------------------------

    Cash flows from
     financing activities
      Repayment of due
       to related party          -      (401,210)            -             -
      Cash of former
       Bradmer upon
       amalgamation              -       563,405             -             -
      Issuance of
       capital stock
       upon exercise of
       stock options             -         6,000             -             -
      Issuance of
       capital stock,
       net of share
       issue costs      19,588,150    12,086,713    19,588,150             -
      Issuance of
       capital stock
       upon exercise
       of warrants               -         2,414             -         2,414
    -------------------------------------------------------------------------
                        19,588,150    12,257,322    19,588,150         2,414
    -------------------------------------------------------------------------
    Increase (decrease)
     in cash during
     the period         15,383,838    10,326,403    18,052,309      (730,740)

    Cash at beginning
     of period           8,813,427       262,723     6,144,956    11,319,866
    -------------------------------------------------------------------------
    Cash at end of
     period            $24,197,265   $10,589,126   $24,197,265   $10,589,126
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00023367E




For further information:

For further information: Bradmer Pharmaceuticals Inc., Mr. Brian
Brohman, Chief Business and Financial Officer, Phone: (416) 361-6058 (Ext.
804), 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

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BRADMER PHARMACEUTICALS INC.

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