EntreMed Reports Fourth Quarter and Year-End 2004 Financial Results
March 09, 2005
ROCKVILLE, MD, March 9—EntreMed, Inc. (Nasdaq: ENMD), a clinical-stage pharmaceutical company developing therapeutics for the treatment of cancer and inflammatory diseases, today reported results for the three months and twelve months ended December 31, 2004.
The Company reported a net loss of ($511,000), or ($0.02) per share for the three months ended December 31, 2004. This compares with a net loss of ($6.2 million), or ($0.18) per share for the fourth quarter 2003. Revenues for the fourth quarter ended December 31, 2004 were $134,000 versus $518,000 for the comparable period in 2003.
For the year ended December 31, 2004, the Company reported a net loss of ($13.6 million), or ($0.37) per share, versus ($20.5 million), or ($0.68) per share, for fiscal year 2003. For fiscal year 2004, revenues were $514,000 versus $1.6 million for 2003. As of December 31, 2004, the Company had cash and short-term investments of approximately $34.5 million.
Dane R. Saglio, EntreMed Chief Financial Officer, commented, “Our financial results for the fourth quarter 2004 were in line with our projections and were positively impacted by the $3,000,000 gain on royalty sale resulting from a one-time purchase price adjustment pursuant to the 2001 sale of our rights to receive royalties on sales of ThalomidÂ®.”
James S. Burns, CEO and President also commented, “EntreMed’s 2004 financial results reflect our focus on trimming expenses and conserving cash to advance our lead clinical product candidate, PanzemÂ® NCD, and our key preclinical programs. In addition, the equity financing at the end of 2004 and the gain on the ThalomidÂ® royalty sale provide sufficient funds for anticipated clinical and preclinical programs well into 2006. Together with further ThalomidÂ® royalty revenue that we expect in 2005, we can now focus more attention on acquiring new technology and products to strengthen our cancer and anti-inflammatory drug development franchise.”
The fourth quarter update call is scheduled for Thursday, March 17, 2005 from 10:00 am to 11:00 am ET and will include a question and answer session. To access the live conference, please dial 800-473-6123 (U.S. or Canada) or 973-582-2732 (internationally) at least 10 minutes prior to the beginning of the call. A digital recording will be available approximately one hour after completion of the conference and will be accessible for 60 days. To access the recording, dial 877-519-4471 (U.S. or Canada) or 973-341-3080 (internationally) and enter the digital pin number 5674749. This call will not be web cast, however, an audio replay will also be available on the Company’s website at http://www.entremed.com approximately one hour after the conclusion of the live conference.
EntreMed, Inc. (Nasdaq: ENMD) is a clinical-stage pharmaceutical company developing the next generation of multi-mechanism oncology and anti- inflammatory drugs that target diseased cells directly and the blood vessels that nourish them. EntreMed is focused on developing drugs that are safe and convenient, and provide the potential for improved patient outcomes. PanzemÂ® (2-Methoxyestradiol or 2ME2), the Company’s lead drug candidate, is currently in clinical trials for advanced cancer, as well as in preclinical development for indications outside of oncology. EntreMed’s goal is to develop and commercialize new compounds based on the Company’s expertise in angiogenesis, cell cycle regulation and inflammation—processes vital to the treatment of cancer and other diseases. The Company’s expertise has also led to the discovery of new molecules, including analogs of 2ME2, peptides of tissue factor pathway inhibitor (TFPI), and inhibitors of fibroblast growth factor-2 (FGF-2) and proteinase activated receptor-2 (PAR-2). EntreMed is developing these potential drug candidates for either in-house advancement or external partnering. Additional information about EntreMed is available on the Company’s website at http://www.entremed.com and in various filings with the Securities and Exchange Commission.
Forward Looking Statements
This release contains, and other statements that EntreMed may make may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for expectations for future financial or business performance, strategies, expectations and goals. Forward-looking statements are typically identified by words or phrases such as “believe,” “feel,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “target,” “assume,” “goal,” “objective,” “plan,” “remain,” “seek,” “trend,” and variations of such words and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may,” or similar expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and EntreMed assumes no duty to update forward-looking statements. Actual results could differ materially from those currently anticipated due to a number of factors, including those set forth in EntreMed’s Securities and Exchange Commission filings under “Risk Factors,” including risks relating to EntreMed’s need for additional capital and the uncertainty of additional funding; the early-stage products under development; uncertainties relating to clinical trials; our success in the further clinical development of PanzemÂ® NCD, dependence on third parties; future capital needs; and risks relating to the commercialization, if any, of the Company’s proposed products (such as marketing, safety, regulatory, patent, product liability, supply, competition and other risks).
ENTREMED, INC. SUMMARY OF OPERATING RESULTS Three Months Ended December 31, 2004 2003 Total revenues $ 133,910 $ 517,533 Research and development $ 2,428,362 $ 4,551,673 General and administrative $ 1,176,393 $ 1,973,210 Gain on sale of royalty interest $ 3,000,000 - Net loss $ (259,979) $(5,947,448) Dividend on Series A convertible preferred stock $ (251,250) $ (251,250) Net loss attributable to common shareholders $ (511,229) $(6,198,698) Net loss per share attributable to common shareholders (basic and diluted) $ (0.02) $ (0.18) Weighted average number of shares outstanding (basic and diluted) 37,261,469 34,997,070 Twelve Months Ended December 31, 2004 2003 Total revenues $ 513,995 $ 1,575,546 Research and development $ 10,523,252 $ 14,252,196 General and administrative $ 6,570,664 $ 7,022,986 Gain on sale of royalty interest $ 3,000,000 - Net loss $(12,621,898) $(19,494,056) Dividend on Series A convertible preferred stock $ (1,005,000) $ (1,005,000) Net loss attributable to common shareholders $(13,626,898) $(20,499,056) Net loss per share attributable to common shareholders (basic and diluted) $ (0.37) $ (0.68) Weighted average number of shares outstanding (basic and diluted) 37,170,544 29,943,161 Cash and Short-term Investments $ 34,539,516 $ 36,816,430
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