BMR.H Bradmer Pharmaceuticals

TORONTO, Nov. 4 /CNW/ -- TSX-V: BMR.H TORONTO, Nov. 4 /CNW/ - Bradmer Pharmaceuticals Inc. ("Bradmer" or the "Company") today announced its 2010 third quarter financial results. Operational Highlights On July 29, 2010, the Company issued and sold, on a private placement basis, an aggregate 5,263,152 common shares at a price of CDN$0.095 per share, for aggregate gross proceeds to the Company of CDN$500,000 (approximately US$487,000). The proceeds of the Offering will be used primarily for general corporate purposes. 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. 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 September 30, 2010, Bradmer recorded a net loss of $73,000 or $0.00 per common share based on the weighted average outstanding shares of 18,000,689 during the period, compared to a net loss of $722,000 or $0.06 per common share for the three months ended September 30, 2009 based on the weighted average outstanding shares of 11,832,537. 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 $13,000 in the three months ended September 30, 2010, compared to $44,000 in the third quarter of 2009. The decrease was due to the cessation of the clinical trial and related 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 $77,000 in the third quarter of 2010 compared to $187,000 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 and directors and officers' liability insurance. For the nine months ended September 30, 2010, the Company recorded a net loss of $350,000 or $0.03 per common share based on the weighted average outstanding shares of 13,005,120 during the period, compared to a net loss of $4,676,000 or $0.36 per common share for the nine months ended September 30, 2009 based on the weighted average outstanding shares of 12,886,915. 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 $49,000 in the nine months ended September 30, 2010, compared to $2,289,000 in the same period of 2009. The decrease was due to the cessation of the clinical trial and related 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 $301,000 in the first nine months of 2010 compared to $1,686,000 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 September 30, 2010, the Company had working capital of $1,606,000, as compared to $810,000 at December 31, 2009. Bradmer had available cash of $1,598,000 at September 30, 2010, as compared to cash of $860,000 at December 31, 2009. The increase was due to the two private placement financings partially offset by the operating loss incurred in the period and the reduction in accounts payable and accrued liabilities. As at September 30, 2010, there were 19,659,726 common shares issued and outstanding, 3,514,562 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 (Expressed in United States Dollars) ------------------------------------------------------------------------- ------------------------------------------------------------------------- September 30 December 31 Note 2010 2009 ------------------------------------------------------------------------- (audited) Assets Current Cash $ 1,597,540 $ 860,460 Amounts receivable 6,456 1,944 Prepaid expenses 19,816 14,246 ------------------------------------------------------------------------- $ 1,623,812 $ 876,650 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities Current Accounts payable and accrued liabilities $ 17,924 $ 66,225 ------------------------------------------------------------------------- Shareholders' Equity Capital stock 4 2,192,004 1,076,755 Warrants 6 799,359 783,988 Contributed surplus 7 1,489,516 1,474,503 Deficit (2,874,991) (2,524,821) ------------------------------------------------------------------------- 1,605,888 810,425 ------------------------------------------------------------------------- $ 1,623,812 $ 876,650 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Bradmer Pharmaceuticals Inc. Statements of Operations and Deficit For the Three and Nine Months Ended September 30 (Expressed in United States Dollars) (unaudited) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Nine Months Ended Three Months Ended September 30 September 30 2010 2009 2010 2009 ------------------------------------------------------------------------- Expenses Research and development $ 49,275 $ 2,289,383 $ 12,883 $ 43,513 General and administrative 301,176 1,685,939 77,415 187,436 Amortization of patents - 47,397 - 15,202 Write-down of patent rights - 672,865 - 472,865 Foreign exchange loss / (gain) 512 4,352 (17,422) 3,755 ------------------------------------------------------------------------- 350,963 4,699,936 72,876 722,771 Interest income 793 23,916 256 1,039 ------------------------------------------------------------------------- Net loss (350,170) (4,676,020) (72,620) (721,732) Deficit at beginning of period (2,524,821) (25,665,493) (2,802,371) (29,619,781) Application of stated capital against deficit - 28,616,848 - 28,616,848 ------------------------------------------------------------------------- Deficit at end of period $(2,874,991) $(1,724,665) $(2,874,991) $(1,724,665) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and diluted net loss per share $ (0.03) $ (0.36) $ (0.00) $ (0.06) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of shares outstanding 13,005,120 12,886,915 18,000,689 11,832,537 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Bradmer Pharmaceuticals Inc. Statements of Cash Flows For the Three and Nine Months Ended September 30 (Expressed in United States Dollars) (unaudited) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Nine Months Ended Three Months Ended September 30 September 30 2010 2009 2010 2009 ------------------------------------------------------------------------- Cash flows from operating activities Net loss for the period $ (350,170) $(4,676,020) $ (72,620) $ (721,732) Add items not affecting cash Stock-based compensation (recovery) 15,013 (45,590) 4,217 (138,192) Amortization of patents - 47,397 - 15,202 Write-down of patent rights - 672,865 - 472,865 ------------------------------------------------------------------------- (335,157) (4,001,348) (68,403) (371,857) Changes in non-cash working capital items Amounts receivable (4,512) 6,872 (2,475) (1,628) Prepaid expenses (5,570) (4,109) 21,315 14,048 Accounts payable and accrued liabilities (48,301) (1,340,266) (20,201) (200,988) ------------------------------------------------------------------------- (393,540) (5,338,851) (69,764) (560,425) ------------------------------------------------------------------------- Cash flows from investing activities Investment in patent rights - (9,208) - (4,000) ------------------------------------------------------------------------- Cash flows from financing activities Issuance of capital stock, net of share issue costs 1,115,249 - 437,690 - Issuance of warrants, net of issue costs 15,371 - 3,873 - Repurchase of common shares - (1,454,360) - (1,454,360) ------------------------------------------------------------------------- 1,130,620 (1,454,360) 441,563 (1,454,360) ------------------------------------------------------------------------- Increase / (Decrease) in cash and cash equivalents during the period 737,080 (6,802,419) 371,799 (2,018,785) Cash and cash equivalents at beginning of period 860,460 8,245,455 1,225,741 3,461,821 ------------------------------------------------------------------------- Cash at end of period $ 1,597,540 $ 1,443,036 $ 1,597,540 $ 1,443,036 ------------------------------------------------------------------------- ------------------------------------------------------------------------- %SEDAR: 00023367E 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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