EntreMed reports $2.1 million net loss for third quarter 2010

Nov 12 2010

EntreMed, Inc. (Nasdaq: ENMD), a clinical-stage pharmaceutical company developing therapeutics for the treatment of cancer, today reported results for the three- and nine-month periods ending September 30, 2010.

The Company reported a net loss for the third quarter of 2010 of ($2.1 million), or ($0.24) per share. This compares to a reported net income of approximately $85,000 for the same period last year.  Reported net loss for the first nine months of 2010 was ($9.2 million), or ($1.09) per share as compared to ($6.5 million) or ($0.91) per share for 2009.  At September 30, 2009, the Company accrued and recorded estimated royalty revenue from sales of Thalomid® of approximately $3.3 million.  For 2010, royalty revenues will be recorded when they are received, which we expect to occur in the fourth quarter of 2010 and first quarter of 2011.

Kathy Wehmeir-Davis, EntreMed Principle Accounting Officer, commented, "Our financial results for the third quarter are in line with our expectations. Our 2010 research and development expenses increased slightly in the third quarter as we continued to enroll patients in our multi-center Phase 2 ovarian cancer study with ENMD-2076.  At the end of the quarter, we reported approximately $8.4 million in cash and short-term investments.  We believe that these resources, coupled with anticipated royalty inflows, will provide us with sufficient resources to cover planned operations through 2011."

Michael M. Tarnow, Executive Chairman, commented, "As we continue to execute on our strategy to accelerate the clinical development of ENMD-2076, we remain diligent in our cost management efforts as reflected in our third quarter results.  During the third quarter, we successfully completed a strategic financing with fundamental investors who believe in the potential of ENMD-2076. This additional equity is instrumental in extending our cash runway through 2011.  In addition to our cash and short-term investments, EntreMed has been awarded a Qualifying Therapeutic Discovery Project (QTDP) grant in the amount of $244,479 based on its application for ENMD-2076. We are pleased that our multi-center Phase 2 study for ENMD-2076 in ovarian cancer patients is progressing as planned and we anticipate the presentation of clinical data early in 2011.  We remain enthusiastic about the potential for ENMD-2076 in solid and hematological malignancies and look forward to further expanding the clinical development program for this exciting drug candidate."