TUCSON, Ariz., Aug. 14, 2008 (PRIME NEWSWIRE) -- ImaRx Therapeutics, Inc. (Nasdaq:IMRX), a biopharmaceutical company with a commercial product, urokinase, and a research and development program focused on the development of new treatments for vascular disorders leveraging its proprietary SonoLysis technology, today reported financial results for the quarter ended June 30, 2008.
Corporate Updates:
* The Company continues to conduct the additional testing
procedures required by the FDA in order to obtain the FDA's
approval of the transfer of the urokinase stability program
and authorization to release the previously submitted lots of
urokinase for commercialization. The Company intends to
complete the additional urokinase stability testing and submit
the data to the FDA by the end of the third quarter 2008. If
the data are sufficient for the FDA to approve release of the
lots, the Company may be in a position to begin sales of its
labeled vials of urokinase with extended expiration dating in
the fourth quarter of this year.
* The Company previously announced a significant corporate
restructuring that included a reduction in force of all but
two employees. In addition, ImaRx announced it would commence
exploring strategic alternatives for its commercial urokinase
assets, clinical-stage SonoLysis program as well as its other
company assets to enhance shareholder value. The Company
continues to evaluate various strategic alternatives and
intends to provide further updates as such alternatives are
finalized.
Financial Results
Revenue remained constant at $2.1 million for the second quarter ended June 30, 2008 and 2007. Revenue for the six months ended June 30, 2008 increased to $4.1 million from $3.4 million for the same period in the prior year. The increase is primarily due to increased sales of our urokinase product.
Net loss for the second quarter of 2008 was $7.3 million compared to a net loss of $1.9 million for the same period last year. This change was primarily a result of a $10.0 million asset impairment charge and $0.8 million of costs associated with restructuring offset partially by the $5.6 million gain on extinguishment of debt in relation to the non-recourse note payable to Abbott Laboratories. Net loss per share attributable to common shareholders for the second quarter of 2008 was $0.72 based on weighted average shares of approximately 10.1 million, compared to net loss attributable to common shareholders in the same period last year of $0.74 based on weighted average shares of approximately 2.6 million.
Net loss for the six months ended June 30, 2008 was $9.8 million compared to a net loss of $4.8 million for the same period last year. This change was primarily a result of a $10.0 million asset impairment charge, $0.8 million of costs associated with restructuring and increased general and administrative costs offset partially by the $5.6 million gain on extinguishment of debt in relation to the non-recourse note payable to Abbott Laboratories. Net loss per share attributable to common shareholders for the second quarter of 2008 was $0.97 based on weighted average shares of approximately 10.1 million, compared to net loss per share attributable to common shareholders in the same period last year of $1.82 based on weighted average shares of approximately 2.6 million.
Cost of product sales for the second quarter of 2008 totaled $0.9 million compared to $1.0 million for the second quarter of 2007. Cost of product sales for the six months ended June 30, 2008 was $1.8 million compared to $1.4 million in the prior year period. This increase is related to the increase in the number of vials sold through to hospitals or other end users. The cost of product sales includes the price paid to acquire the urokinase inventory as well as labeling costs directly incurred in bringing the product to market.
Research and development expenses decreased to $1.0 million for the second quarter of 2008 compared to $1.6 million for the same period last year. The change was primarily a result of lower clinical trial costs due to the wind down of our clinical trial and reduced stock-based compensation expense as a result of higher forfeitures. Research and development expenses for the six months ended June 30, 2008 decreased to $2.6 million from $3.1 million in the prior year period. This decrease was principally a result of reduced clinical trial costs, laboratory supply and travel costs due to the reduction in research activities offset partially by an increase in work performed by third parties on grants.
General and administrative expenses for the second quarter of 2008 increased to $3.0 million from $1.2 million for the same period last year resulting mainly from severance costs and other costs associated with restructuring activities as well as increased marketing costs for our product rebranding efforts. General and administrative expenses for the six months ended June 30, 2008 increased to $5.0 million from $2.6 million for the same period last year resulting primarily from severance costs, an increase in costs associated with maintaining public company infrastructure and increased marketing costs for our product rebranding efforts offset partially by a decrease in amortization expense.
On June 30, 2008, ImaRx had $2.1 million in cash and cash equivalents compared to $12.9 million in cash and cash equivalents on December 31, 2007. The decrease in the cash balance was primarily related to cash used in performing operating activities, severance payments and the $5.2 million payment to satisfy all outstanding liabilities to Abbott Laboratories. With the restructuring activities announced on June 11, 2008, management believes that there will be sufficient cash resources to fund operations into the fourth quarter 2008.
About ImaRx Therapeutics
ImaRx Therapeutics is a biopharmaceutical company with a commercial product, urokinase, and a research and development program focused on the development of new treatments for vascular disorders leveraging its proprietary SonoLysis technology.
The ImaRx Therapeutics, Inc. logo is available at http://www.primenewswire.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 FDA's approval of the Company's transfer of the urokinase stability testing program and release of urokinase lots for commercialization, 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 fourth quarter 2008. 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 14, 2008, and the Company undertakes no duty to update this information.
ImaRx Therapeutics, Inc.
Consolidated Statements of Operations
(in thousands except share and per share data)
Three Months Ended Six Months Ended
June 30 June 30
------------------------ ------------------------
2007 2008 2007 2008
----------- ----------- ----------- -----------
(unaudited)
Revenues:
Product sales,
net $ 1,992 $ 2,040 $ 3,078 $ 3,889
Research and
development 161 106 283 201
----------- ----------- ----------- -----------
Total
operating
revenue 2,153 2,146 3,361 4,090
Costs and
expenses:
Cost of product
sales 959 925 1,420 1,759
Research and
development 1,606 1,033 3,143 2,600
General and
administrative 1,158 2,994 2,582 4,988
Asset
Impairment -- 9,978 -- 9,978
----------- ----------- ----------- -----------
Total cost
and expenses 3,723 14,930 7,145 19,325
----------- ----------- ----------- -----------
Operating loss (1,570) (12,784) (3,784) (15,235)
Interest and
other income,
net 89 (58) 130 36
Interest
expense (225) (30) (450) (203)
Gain on
extinguishment
of debt 219 5,602 219 5,602
----------- ----------- ----------- -----------
Net loss (1,487) (7,270) (3,885) (9,800)
Accretion of
dividends on
preferred stock (434) -- (867) --
----------- ----------- ----------- -----------
Net loss
attributed to
common
stockholders $ (1,921) $ (7,270) $ (4,752) $ (9,800)
=========== =========== =========== ===========
Basic loss per
common share:
Loss from
continuing
operations $ (0.74) $ (0.72) $ (1.82) $ (0.97)
=========== =========== =========== ===========
Shares used in
computing net
loss per share:
-- Basic 2,606,019 10,087,238 2,605,968 10,067,072
ImaRx Therapeutics, Inc.
Selected Balance Sheet Data (in thousands)
December 31, June 30,
2007 2008
---------- ----------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 12,861 $ 2,146
Restricted cash 388 --
Accounts receivable, net 349 28
Inventory 11,138 2,500
Inventory subject to return 2,560 1,309
Assets held for sale -- 279
Prepaid expenses and other 589 201
---------- ----------
Total current assets 27,885 6,463
Long-term assets:
Property and equipment, net 1,170 112
Intangible assets, net 1,633 --
Other 19 --
---------- ----------
Total assets $ 30,707 $ 6,575
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,277 $ 1,459
Accrued expenses 837 591
Accrued chargebacks and administrative
fees 1,317 1,069
Deferred revenue 5,373 2,640
Notes payable and accrued interest 11,698 --
Other -- 247
---------- ----------
Total current liabilities 20,502 6,006
Total stockholders' equity 10,205 569
---------- ----------
Total liabilities and stockholders'
equity $ 30,707 $ 6,575
========== ==========