REDMOND, Wash., Aug. 11, 2009 (GLOBE NEWSWIRE) -- ImaRx Therapeutics, Inc. (OTCBB:IMRX), a development-stage biopharmaceutical company, whose research and development efforts have focused on the development of therapies for stroke and other vascular disorders leveraging its proprietary microsphere and ultrasound technology, today reported financial results for the second quarter ended June 30, 2009.
Corporate Updates:
* On June 15, 2009, ImaRx entered into an Asset Purchase Agreement
with WA 32609, Inc. to sell substantially all of its assets related
to its therapy programs for the treatment of ischemic stroke as well
as other vascular disorders associated with blood clots, including
but not limited to its clinical-stage SonoLysis product candidate,
which involves the administration of its proprietary MRX-801
microspheres. The Company will receive $0.5 million in cash for the
assets, subject to certain potential adjustments specified in the
agreement. $0.4 million of the cash consideration will be paid at
closing and the remaining $0.1 million will be placed in an escrow
account to satisfy certain liabilities that may arise post-closing.
The escrow account will be released and distributed to the Company
following the expiration of an approximately six month holdback
period.
* On June 15, 2009, ImaRx entered into the First Amendment to the
Asset Purchase Agreement with Microbix, which amended the Asset
Purchase Agreement ("Original Agreement") dated September 22, 2008.
The Amendment provides that Microbix shall not be obligated to pay
ImaRx the $2.5 million bonus due under the Original Agreement on
release by the FDA of certain lots of urokinase. Instead, Microbix
shall pay to the Company a sum of $0.2 million within 90 calendar
days of the date of receipt by Microbix of written authorization
from the FDA for the release of the urokinase lots should such
authorization be received on or before September 1, 2010.
* The Company continues to seek strategic alternatives for the
remaining company assets.
Financial Results
Revenue decreased to zero for the second quarter ended June 30, 2009 compared to $2.1 million for the second quarter ended June 30, 2008. Revenue for the six months ended June 30, 2009 decreased to $26,000 from $4.1 million for the same period in the prior year. The decrease is attributable to an ongoing reduction in channel inventory since divesting the urokinase assets to Microbix Biosystems in September 2008.
Net loss for the second quarter of 2009 was $0.4 million compared to a net loss of $7.3 million for the same period last year. This change was a result of the restructuring activities that were initiated in June 2008 and the sale of the urokinase assets to Microbix in September 2008. Net loss per share attributable to common shareholders for the second quarter of 2009 was $0.04 based on weighted average shares of approximately 10.2 million, compared to net loss attributable to common shareholders in the same period last year of $0.72 based on weighted average shares of approximately 10.1 million.
Net loss for the six months ended June 30, 2009 was $0.7 million compared to a net loss of $9.8 million for the same period last year. This change was a result of the restructuring activities that were initiated in June 2008 and the sale of the urokinase assets to Microbix in September 2008. Net loss per share attributable to common shareholders for the second quarter of 2009 was $0.07 based on weighted average shares of approximately 10.2 million, compared to net loss per share attributable to common shareholders in the same period last year of $0.97 based on weighted average shares of approximately 10.1 million.
Cost of product sales for the second quarter of 2009 were zero compared to $1.0 million for the second quarter of 2008. Cost of product sales for the six months ended June 30, 2009 was $13,000 compared to $1.8 million in the prior year period. The decrease is associated with the divestiture of the urokinase assets in September 2008.
Research and development expenses decreased to $41,000 for the second quarter of 2009 compared to $1.0 million for the same period last year. This decrease was principally a result of the wind down of our TUCSON clinical trial and our restructuring activities in addition to the elimination of stability testing costs as a result of our sale of urokinase assets. Research and development expenses for the six months ended June 30, 2009 decreased to $0.1 million from $2.6 million in the prior year period. This decrease was principally a result of the wind-down of the TUCSON clinical trial in addition to the restructuring activities initiated in the second quarter of 2008.
General and administrative expenses for the second quarter of 2009 decreased to $0.4 million from $3.0 million for the same period last year resulting mainly from the restructuring activities initiated in June 2008. General and administrative expenses for the six months ended June 30, 2009 decreased to $0.8 million from $5.0 million for the same period last year resulting primarily from cost saving activities initiated with our June 2008 restructuring in addition to reduced marketing costs as a result of our divestiture of the urokinase assets in September 2008.
On June 30, 2009, ImaRx had $0.2 million in cash and cash equivalents compared to $0.8 million in cash and cash equivalents on December 31, 2008. The decrease in the cash balance was primarily related to cash used in performing operating activities. Management believes that there will be sufficient cash resources to fund operations into the third quarter of 2009.
About ImaRx Therapeutics
ImaRx Therapeutics is a development-stage biopharmaceutical company with a research and development program focused on the development of new treatments for vascular disorders leveraging its proprietary microsphere and ultrasound or SonoLysis technology.
The ImaRx Therapeutics, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5321
Cautionary Statement For The Purpose Of The "Safe Harbor" Provisions Of The Private Securities Litigation Reform Act of 1995
Note: Statements made in this press release which are not historical in nature constitute forward-looking statements for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Such statements include those related to the Company's search for strategic alternatives to enhance shareholder value and, management belief that there will be sufficient cash resources to fund operations into the third quarter 2009. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. A more complete description of these risks and the event that may cause such events not to occur can be found in the Company's filings with the Securities and Exchange Commission. All information in this press release is as of August 11, 2009, and the Company undertakes no duty to update this information.
Additional Information and Where to Find It
In connection with stockholder approval of the Company's previously announced asset sale and reverse stock split, the Company has filed a definitive proxy statement and other materials with the SEC. Stockholders of the Company are advised to read the definitive proxy statement and any other relevant documents filed with the SEC because those documents will contain important information about the Company's previously announced asset sales and reverse stock split. Stockholders may obtain a free copy of the definitive proxy statement, and other documents filed with the SEC, at the SEC's web site at http://www.sec.gov. Free copies of these filings may also be obtained from the Company by directing a request to Bradford A. Zakes, President and Chief Executive Officer, ImaRx Therapeutics, Inc., 12277 134th Court NE, Suite 202, Redmond, Washington 98052, or at www.imarx.com.
The Company and its directors and its chief executive officer may be deemed to be participants in the solicitation of proxies from the Company's stockholders in favor of the Company's previously announced asset sales and reverse stock split. Information regarding the Company's directors and executive officers is available in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 filed with the SEC on March 9, 2009. Additional information regarding the interests of such potential participants is included in the definitive proxy statement and the other relevant documents filed with the SEC.
ImaRx Therapeutics, Inc.
(A Development-Stage Company)
Consolidated Statements of Operations
(in thousands except share and per share data)
Three Months Ended Six Months Ended
June 30 June 30
---------------------- ----------------------
2008 2009 2008 2009
---------- ---------- ---------- ----------
(unaudited)
Revenues:
Product sales, net $ 2,040 $ -- $ 3,889 $ 26
Research and
development 106 -- 201 --
---------- ---------- ---------- ----------
Total operating
revenue 2,146 -- 4,090 26
Costs and expenses:
Cost of product sales 925 -- 1,759 13
Research and
development 1,033 41 2,600 80
General and
administrative 2,994 421 4,988 757
Asset impairment 9,978 18 9,978 18
---------- ---------- ---------- ----------
Total cost and
expenses 14,930 480 19,325 868
---------- ---------- ---------- ----------
Operating loss (12,784) (480) (15,235) (842)
Interest and other
income, net (58) 46 36 60
Interest expense (30) -- (203) --
Gain on settlement of
accounts payable and
other accrued
liabilities -- -- -- 79
Gain on extinguishment
of debt 5,602 -- 5,602 --
---------- ---------- ---------- ----------
Net loss (7,270) (434) (9,800) (703)
Basic loss per common
share:
Loss from continuing
operations $ (0.72) $ (0.04) $ (0.97) $ (0.07)
========== ========== ========== ==========
Shares used in
computing net loss
per share:
-- Basic 10,087,238 10,165,733 10,067,072 10,165,733
ImaRx Therapeutics, Inc.
(A Development-Stage Company)
Selected Balance Sheet Data (in thousands)
December 31, June 30,
2008 2009
------------ ------------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 757 $ 167
Inventory subject to return 12 --
Assets held for sale 108 133
Prepaid expenses and other 144 62
------------ ------------
Total current assets 1,021 362
Long-term assets:
Property and equipment, net 51 --
Total assets $ 1,072 $ 362
============ ============
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 117 $ 203
Accrued expenses 82 88
Deferred revenue 226 200
Other 154 --
------------ ------------
Total current liabilities 579 491
Total stockholders' equity (deficit) 493 (129)
------------ ------------
Total liabilities and stockholders' equity
(deficit) $ 1,072 $ 362
============ ============