Quarterly Conference Call to be Held Thursday August 7 at 8:30 a.m. NEW HAVEN, Conn., Aug. 4
NEW HAVEN, Conn., Aug. 4 /PRNewswire-FirstCall/ -- VION PHARMACEUTICALS,
INC. (Nasdaq: VION) today announced financial results for the three-month and
six-month periods ended June 30, 2008.
The Company reported a net loss of $7.9 million, or $1.06 per share, for
the three-month period ended June 30, 2008, compared to a net loss of $8.8
million, or $1.33 per share, for the same period in 2007. Weighted-average
common shares outstanding for the three months ended June 30, 2008 and 2007
were 7.4 million and 6.6 million, respectively.
Operating expenses were reduced by $1.9 million from $8.6 million in the
2007 second quarter to $6.7 million in the comparable quarter in 2008.
Interest income for the three months ended June 30, 2008 and 2007 was $265,000
and $998,000, respectively.
For the six-month period ended June 30, 2008, the net loss was $16.1
million, or $2.20 per share, compared to a net loss of $16.8 million, or $2.53
per share, for the same period in 2007. Weighted-average common shares
outstanding for the six months ended June 30, 2008 and 2007 were 7.3 million
and 6.6 million, respectively.
Operating expenses were reduced by $2.6 million, from $16.5 million for
the six-month period in 2007, to $13.9 million in the comparable period in
2008. Interest expense increased by $789,000 over the prior year related to
the Company's Convertible Senior Notes issued in February 2007. Interest
income for the first half of 2008 decreased by $898,000 over the comparable
2007 period.
The Company reported ending the quarter with $49.9 million in cash and
cash equivalents, sufficient to fund its operations through the fourth quarter
of 2009 based on the current operating plan.
Alan Kessman, Chief Executive Officer, commented, "We continue to make
progress on a New Drug Application for Cloretazine(R) (VNP40101M) based on our
two Phase II trials in elderly patients with acute myelogenous leukemia (AML).
We intend to file this NDA in the first half of 2009."
In the quarter the Company exercised its right to appeal a delisting
determination to a Nasdaq Listings Qualification Panel and presented a plan
for compliance with listing requirements. The Company was notified that the
plan was accepted and that it had until August 15, 2008 to implement the plan.
The Company has contacted Nasdaq to indicate that it is unlikely that its plan
will be implemented by August 15, 2008. Therefore, the Company expects that
in the near future it will no longer be listed on the Nasdaq Capital Market
and that its common stock will be quoted on the OTC Bulletin Board.
On February 20, 2008, the Company implemented a one-for-ten reverse split
of all outstanding shares of its common stock and a corresponding decrease in
the number of shares of authorized common stock. Share and per share amounts
contained herein are provided on a post-split basis.
Second Quarter Conference Call
The Company announced that it would hold a conference call on Thursday,
August 7, 2008 to discuss its 2008 second quarter financial results. The call
will begin at 8:30 a.m. Eastern Time.
To participate in the conference call, please dial (800) 591-6930 in the
U.S. ((617) 614-4908 for international callers) at least 15 minutes before the
start of the call. When prompted for a pass code, please enter 25790591.
An audio webcast of the call will be accessible at www.vionpharm.com.
Those who wish to listen to the conference call on the Web should visit the
Investor Relations section of the Company's website at least 15 minutes prior
to the event broadcast, and follow the instructions provided to assure that
the necessary audio applications are downloaded and installed. These programs
can be obtained at no charge to the user.
A replay of the call will be available two hours after the completion of
the call at (888) 286-8010 in the U.S., ((617) 801-6888 for international
callers), pass code 42942956. The replay will be available through Thursday,
August 21, 2008.
About Vion
Vion Pharmaceuticals, Inc. is committed to extending the lives and
improving the quality of life of cancer patients worldwide by developing and
commercializing innovative cancer therapeutics. Vion has two agents in
clinical trials. Cloretazine(R) (VNP40101M), a unique alkylating agent, is
being evaluated in a Phase II pivotal trial as a single agent in elderly
patients with previously untreated de novo poor-risk acute myelogenous
leukemia. Clinical trials of Cloretazine(R) (VNP40101M) with cytarabine in
elderly patients with acute myelogenous leukemia, with temozolomide in brain
tumors, and with stem cell transplantation in advanced hematologic
malignancies, are also being conducted. Triapine(R), a potent inhibitor of a
key step in DNA synthesis, is being evaluated in clinical trials sponsored by
the National Cancer Institute. For additional information on Vion and its
product development programs, visit the Company's Internet web site at
www.vionpharm.com.
This news release contains forward-looking statements. Such statements are
subject to certain risk factors which may cause Vion's plans to differ or
results to vary from those expected, including Vion's potential inability to
obtain regulatory approval for its products, particularly Cloretazine(R)
(VNP40101M), delayed or unfavorable results of drug trials, the possibility
that favorable results of earlier preclinical studies, clinical trials or
interim clinical trial data are not predictive of safety and efficacy results
in later or final clinical trials, the need for additional research and
testing, the inability to manufacture product, the potential inability to
secure external sources of funding to continue operations, the inability to
access capital and funding on favorable terms, continued operating losses and
the inability to continue operations as a result, the possible delisting of
the Company's common stock from the NASDAQ Capital Market and a variety of
other risks set forth from time to time in Vion's filings with the Securities
and Exchange Commission, including but not limited to the risks attendant to
the forward-looking statements included under Item 1A, "Risk Factors" in
Vion's Form 10-K for the year ended December 31, 2007 and Form 10-Q for the
quarter ended March 31, 2008. In particular, there can be no assurance as to
the results of any of the Vion's clinical trials, that any of these trials
will continue to full accrual, or that any of these trials will not be
discontinued, modified, delayed or ceased altogether. Except in special
circumstances in which a duty to update arises under law when prior disclosure
becomes materially misleading in light of subsequent events, Vion does not
intend to update any of these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
COMPANY CONTACT: Vion Pharmaceuticals, Inc.
Alan Kessman, Chief Executive Officer
Howard B. Johnson, President & CFO
(203) 498-4210
--Financial Statements Follow--
VION PHARMACEUTICALS, INC.
(A Development Stage Company)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months EndedSix Months Ended
June 30, June 30,
(In thousands, except per share data) 2008 2007 2008 2007
Technology license fee revenue $13 $5 $27 $10
Operating expenses:
Clinical trials2,9533,892 5,807 7,291
Other research and development 2,0132,599 4,272 5,112
Total research and development 4,9666,49110,07912,403
Marketing, general and administrative 1,6962,141 3,783 4,108
Total operating expenses 6,6628,63213,86216,511
Loss from operations (6,649) (8,627) (13,835) (16,501)
Interest income 265 998 767 1,665
Interest expense (1,513) (1,490) (3,018) (2,229)
Other expense, net(6) (1) (12) (4)
Loss before income taxes (7,903) (9,120) (16,098) (17,069)
Income tax benefit -- (278) --(272)
Net loss ($7,903) ($8,842) ($16,098) ($16,797)
Basic and diluted loss per share(1) ($1.06) ($1.33) ($2.20) ($2.53)
Weighted-average number of shares
of common stock outstanding(1) 7,4406,636 7,307 6,636
(1) Adjusted for all periods presented to reflect the Company's
one-for-ten reverse stock split effected February 20, 2008.
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(Unaudited)
June 30,Dec. 31,
(In thousands) 2008 2007
Cash and cash equivalents $49,877 $61,067
Total assets51,618 63,195
Convertible senior notes54,843 54,275
Total liabilities 62,506 61,988
Shareholders' (deficit) equity (10,888) 1,207
SOURCE Vion Pharmaceuticals, Inc.
