| |
METHYLGENE REPORTS FOURTH QUARTER AND FULL YEAR 2010 FINANCIAL RESULTS
Montreal, Quebec. March 30, 2011 – MethylGene Inc. (TSX: MYG) today reported financial results for the fourth quarter and full year ended December 31, 2010. The Company announced on March 24, 2011 its intent to complete a private placement which is expected to provide gross proceeds of $34.5 million. Upon closing of the private placement, the Company’s cash runway would extend into 2014. In order to continue as a going concern, the Company must receive proceeds of a financing by the end of the second quarter of 2011.
Fourth Quarter 2010 Financial Results Reported in Canadian Dollars
MethylGene reported total revenues of $816,000 for the quarter ended December 31, 2010, an increase of $334,000 compared to the fourth quarter 2009, related to higher license and up-front fees as well as higher research collaborations and contract revenues from Otsuka Pharmaceutical Co. Ltd.
Total expenditures of $2.8 million in the fourth quarter of 2010 were $2.9 million, or 50.6 percent, lower than in the fourth quarter of 2009 due to lower costs associated with MGCD265, MGCD290 and the impact of cost reduction efforts. General and administration costs of $898,000 in the fourth quarter of 2010 were $229,000, or 20.3 percent, lower than in the fourth quarter of 2009, due primarily to lower compensation costs and lower professional fees. The fourth quarter of 2010 also included interest income of $22,000 versus $23,000 in 2009 and a currency exchange loss of $18,000 versus $129,000 in 2009. As a result of the reduced expenses, the loss per share of $0.04 in the fourth quarter of 2010 was significantly improved over the loss per share of $0.12 in the fourth quarter of 2009.
Full Year 2010 Financial Results in Canadian Dollars
MethylGene reported total revenues of $2.4 million in 2010, a decrease of $631,000 compared to 2009. The decrease was primarily due to the termination of the agreement with Celgene Corporation in January 2009. This decline was partially offset by higher license and up-front fees as well as higher research collaborations and contract revenues from Otsuka Pharmaceutical Co. Ltd.
Total expenditures of $17.1 million in 2010 were $9.4 million, or 35.5 percent, lower than in 2009. Net research and development expenses decreased by 48.1 percent to $10.9 million for the full year 2010 compared to 2009, with savings achieved in each of our clinical programs as we focused on the development of MGCD265 and the impact of cost reduction efforts including a reduction in workforce. General and administrative expenses of $6.2 million were $1.4 million higher than in 2009 due to the one-time expense of $1.5 million related to the departure of the previous President and Chief Executive Officer. Interest income in 2010 of $55,000 was $136,000 lower than in 2009 due to lower average cash balances while a foreign exchange loss of $58,000 in 2010 was $340,000 lower than in 2009 due to lower average exposure to U.S. dollars. As a result of the reduced expenses in 2010, the loss per share of $0.36 was significantly improved versus the loss per share of $0.63 in 2009.
At December 31, 2010, the Company had cash, cash equivalents and restricted cash of $8.6 million compared to $18.1 million at December 31, 2009. The Company has recently taken several important steps to significantly conserve cash and cash equivalents by reducing costs including a further reduction in workforce; the sale of de-commissioned lab equipment; and a resiliation agreement whereby the landlord released the Company from all remaining obligations on its remaining lease. The impact of this resiliation agreement will improve the cash flow by approximately $575,000 for the combined years of 2011 and 2012.
About MethylGene
MethylGene Inc. (TSX: MYG) is a clinical-stage biopharmaceutical company that develops novel therapeutics for cancer and infectious disease. The Company’s lead product candidates include: MGCD265, an oral Met/VEGF receptor kinase inhibitor that is in Phase 1/2 clinical trials for solid tumor cancers and MGCD290, a fungal Hos2 inhibitor, for use in combination with fluconazole for fungal infections, which has completed Phase 1 clinical studies. The Company’s partners include Otsuka Pharmaceutical Co. Ltd., Taiho Pharmaceutical Co. Ltd., and EnVivo Pharmaceuticals, Inc.
Certain statements contained in this news release, other than statements of fact that are independently verifiable at the date hereof, may constitute forward-looking statements. Such statements, based as they are on the current expectations of management of MethylGene, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond MethylGene’s control. These risks and uncertainties could cause future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Such results, performance or achievements include, but are not limited to, the timing and effects of regulatory action; the continuation of collaborations; the results of clinical trials; the timing of enrollment or completion of clinical trials; the success, efficacy or safety of MGCD265, MGCD290 or mocetinostat (MGCD0103); the ability to scale up, formulate and manufacture sufficient GMP, clinical or commercialization quantities of MGCD265, MGCD290 or mocetinostat, and the relative success or the lack of success in developing and gaining regulatory approval and/or market acceptance for any compound or new product including MGCD265, MGCD290 or mocetinostat. Such risks include, but are not limited to, the impact of general economic conditions, economic conditions in the pharmaceutical industry, changes in the regulatory environment in the jurisdictions in which MethylGene does business, stock market volatility, fluctuations in costs, expectations with respect to our intellectual property position and our ability to protect our intellectual property and operate our business without infringing upon the intellectual property rights of others, changes in the competitive landscape including changes in the standard of care for the various indications in which MethylGene is involved, and changes to the competitive environment due to consolidation, as well as other risks, as described in MethylGene’s Annual Information Form for the fiscal year ending December 31, 2009, under the heading ”Risk Factors” which you are urged to read and all other documents filed by the Company that can be found at www.sedar.com. Consequently, actual future results may differ materially from the anticipated results expressed in the forward-looking statements. The reader should not place undue reliance on the forward-looking statements included in this presentation. These statements speak only as an update on the date they are made and MethylGene is under no obligation to revise such statements as a result of any event, circumstance or otherwise except in accordance with law
Contacts:
Charles Grubsztajn
President & CEO
MethylGene Inc.
Phone: 514-337-3333 ext. 373
mctavishk@methylgene.com
www.methylgene.com
Rhonda Chiger
Rx Communications Group, LLC
Phone: 917-322-2569
rchiger@rxir.com
|
|
