Bradmer Implements Cash Conservation Plan
- Company suspends patient enrollment and contract manufacturing activities - TSX: BMR
TORONTO, March 05, 2009 /PRNewswire-FirstCall/ - Bradmer Pharmaceuticals Inc. (BMR.TSX), today announced that it will implement a restructuring plan to conserve existing cash resources. The plan is in response to the uncertain state of the capital markets and the Company's ongoing evaluation of strategic alternatives.
As announced on February 17, 2009, a delay in completing the 60-patient "run-in phase" and full enrollment of the GLASS-ART Trial was identified by the Company. This delay will require the Company to secure additional capital in order to continue the GLASS-ART Trial in its current form. Given current market conditions, the Company does not believe that it will be able to access additional capital at this time on reasonable terms.
The restructuring plan is meant to reduce expenditures in order to conserve cash while the Board of Directors considers strategic options. While the strategic evaluation process is underway, Bradmer has suspended patient enrollment in the GLASS-ART Trial and suspended contract manufacturing of Neuradiab(R). The plan includes an approximate 70 percent reduction in headcount by May 1, 2009, representing 13 positions at the Company.
"We believe it is prudent in today's uncertain economic climate to take all appropriate measures to conserve existing capital until a new strategy is adopted by our Board," said Dr. Alan M. Ezrin, President and Chief Executive Officer of Bradmer. "The major cost drivers for Bradmer are clinical operations support, patient enrollment rate and contract manufacturing. By suspending these activities, we will significantly reduce our ongoing expenditures. However, we will continue to support and track the progress of all patients currently enrolled in the GLASS-ART Trial. The Company intends to maintain the ability to pursue business development strategies for Neuradiab and is continuing to explore opportunities that would permit further development of Neuradiab."
As a result of the restructuring, Bradmer will reduce its operating expenses leaving unencumbered cash resources available for careful strategic deployment. The Board of Directors will continue to conduct a review of strategic options and recommendations will be forthcoming.
About Bradmer Pharmaceuticals Inc.
Bradmer Pharmaceuticals is a biopharmaceutical company focused on the development and commercialization of new and innovative cancer therapies. Bradmer's lead clinical candidate, Neuradiab, was developed at Medical Center as a proprietary therapy for a particularly aggressive form of brain cancer, glioblastoma multiforme. Bradmer has initiated enrollment in a Phase III multi-center clinical trial of the licensed treatment. Neuradiab has been granted Orphan Drug Status by both the U.S. Food and Drug Administration and the European Medicines Agency.
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 press 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 successful and timely completion of clinical studies, 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.
Posted: March 2009