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Nventa Biopharmaceuticals announces first quarter 2009 financial results and recent corporate highlights

^{Published on 2009-05-13 16:48:46, Last Modified on 2009-05-13 16:51:14 - Market Wire}
 

 SAN DIEGO, CA, May 13 /CNW/ - Nventa Biopharmaceuticals Corporation (TSX:NVN) today announced financial results for the first quarter ended March 31, 2009, and highlighted several recent product developments and corporate milestones. Recent corporate highlights: - In March 2009, we announced the execution of an arrangement agreement to combine with Akela Pharma Inc. (Akela) by way of a plan of arrangement under the Business Corporations Act (British Columbia). The board of directors of both companies unanimously approved the agreement. The transaction is to be effected by an exchange of Akela common shares for the outstanding shares of Nventa on the basis of 0.0355 Akela shares for each Nventa share (or 1 Akela share for 28.169 Nventa shares), resulting in an approximate 70/30 ownership split between Akela and Nventa shareholders, respectively, in the combined entity. The public company will retain Akela's name, and will continue to be listed on the Toronto Stock Exchange under the ticker symbol AKL. Bob Rieder, Chairman and Greg McKee, President and Chief Executive Officer of Nventa will be nominated to the board of directors of Akela. The transaction is subject to approvals from Nventa shareholders, the British Columbia Supreme Court and the Toronto Stock Exchange. Subject to the satisfaction of certain customary closing conditions, including a minimum amount of $1.5M of net cash in Nventa, the transaction is expected to close in May 2009. First Quarter ended March 31, 2009 Financial Results All amounts referenced below are in Canadian dollars. Net losses for the three months ended March 31, 2009 and 2008 were $916,000, or 0.0035 per share, and $1,865,000, or 0.0071 per share, respectively. The $949,000 decrease in our first quarter 2009 net loss over the first quarter of 2008 is primarily related to an $990,000 decrease in R&D spend attributed to the halt of clinical studies, reduction in force and other cost savings initiatives resulting from the 2008 reorganization. Also resulting from the 2008 reorganization and other cost savings initiatives was a decrease in SG&A of $340,000, offset by a decrease in the foreign exchange gain of $381,000. The company had cash and cash equivalents of $2,429,000 as of March 31, 2009, compared to $3,416,000, as of December 31, 2008. About Nventa Biopharmaceuticals Corporation: -------------------------------------------- Nventa is developing innovative therapeutics incorporating our proprietary CoVal(TM) fusion technology for the treatment of viral infections and cancers, with a focus on diseases caused by the human papillomavirus (HPV); and a Toll-like Receptor 3 (TLR3) agonist for use as a vaccine adjuvant and as an immunotherapeutic for viral infections and cancer. The company is publicly traded on the Toronto Stock Exchange under the symbol "NVN". For more information about Nventa Biopharmaceuticals Corporation, please visit the company's website located at [ www.nventacorp.com ]. The audit committee of the company has reviewed and approved of the contents of this press release. Summary financial statements are attached below. The full financial statements and MD&A for the three months ended March 31, 2009 can be found on SEDAR at [ http://www.sedar.com ]. This press release contains statements which may constitute forward-looking information under applicable Canadian securities legislation or forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements or information may include financial and other projections as well as statements regarding the company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the company's underlying assumptions. The words "may", "would", "could", "will", "likely", "expect," "anticipate," "intend", "plan", "forecast", "project", "estimate" and "believe" or other similar words and phrases may identify forward-looking statements or information. Persons reading this press release are cautioned that such statements or information are only expectations, and that the company's actual future results or performance may be materially different. Forward-looking statements or information in this press release include, but are not limited to, statements or information concerning: the immunologic activity of HspE7 in treating CIN; that we identified an optimal dosing range for Phase 2 development and that our TLR3 agonist may have application in both therapeutic as well as prophylactic vaccines. Such forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause our actual results, events or developments to be materially different from results, events or developments expressed or implied by such forward-looking statements or information. Such factors include, among others, the possibility that immunologic activity of HspE7 may not treat CIN; the possibility that immunology responses may not be a predictor of clinical or therapeutic benefit; our need for capital; the outcomes of our clinical trials; the possibility that our drug candidate will not treat target diseases as intended; the possibility that we will not be successful in licensing our TLR3 agonist to other vaccine developers; risks associated with requirements for approvals by government agencies such as the FDA before products can be tested in clinical trials; the possibility that such government agency approvals will not be obtained in a timely manner or at all or will be conditioned in a manner that would impair our ability to advance development; risks associated with the requirement that a drug candidate be found safe and effective after extensive clinical trials; our dependence on suppliers, collaborative partners and other third parties and the prospects and timing for negotiating supply agreements, corporate collaborations or licensing arrangements; our ability to attract and retain key personnel; and other factors as described in detail in our filings with the Canadian securities regulatory authorities at [ http://www.sedar.com ]. Assumptions underlying our expectations regarding forward-looking statements or information contained in this press release include, among others, that HspE7 treats CIN; that immunology responses are a predictor of clinical and therapeutic benefit; that future clinical trial results will be favorable; that our drug candidate will treat target diseases as intended; that we will raise enough capital, on reasonable terms and in a timely manner; that we will retain our key personnel; that we will obtain the necessary regulatory approvals related to HspE7 and our adjuvant in a timely manner and that we will be able to license our TLR3 agonist. In the event that any of these assumptions prove to be incorrect, or in the event that we are impacted by any of the risks identified above, we may not be able to continue in our business as planned. For a complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review our filings with Canadian securities regulatory authorities, including our 2009 Annual Information Form filed on SEDAR at [ http://www.sedar.com ]. All forward-looking statements and information made herein are based on our current expectations as of the date hereof and we disclaim any intention or obligation to revise or update such forward-looking statements and information to reflect subsequent events or circumstances, except as required by law. -more- (financial information attached) CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (Canadian dollars) (In thousands, except per share amounts) Three months ended March 31, 2009 2008 ------------- ------------- Revenue: Collaborative research and development revenue $ - $ - Operating expenses: Research and development (Notes 2 and 3) 436 1,426 Selling, general and administrative (Note 3) 618 958 Corporate restructuring - - ------------- ------------- 1,054 2,384 ------------- ------------- Operating loss (1,054) (2,384) Other income (expenses): Interest and other income, net 23 111 Net foreign exchange gain (loss) 115 408 ------------- ------------- 138 519 ------------- ------------- Net loss and comprehensive loss $ (916) $ (1,865) ------------- ------------- ------------- ------------- Basic and diluted loss per common share $ (0.00) $ (0.01) ------------- ------------- ------------- ------------- Weighted average number of shares used to compute basic and diluted loss per common share (in thousands) 261,211 260,905 ------------- ------------- CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (Unaudited) (Canadian dollars in thousands) March 31, December 31, 2009 2008 ------------- ------------- Cash and cash equivalents $ 2,429 $ 3,416 Total assets 4,399 5,354 Stockholders' equity 3,838 4,664 Total shares outstanding (in thousands) 261,211 261,211 %SEDAR: 00023483E 

For further information: Greg McKee, President and Chief Executive Officer, Nventa Biopharmaceuticals Corporation, [ gmckee@nventacorp.com ]; Berenice Brownlee, Director Finance, Nventa Biopharmaceuticals Corporation, [ bbrownlee@nventacorp.com ]