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Access Pharmaceuticals, Inc. Announces Financing Arrangement
DALLAS, Aug. 17 /PRNewswire-FirstCall/ -- ACCESS PHARMACEUTICALS, INC. (Amex: AKC) today announced that is has implemented plans that were in place that will provide for cash needs over the intermediate term. In addition, as stated in the Company's recent 10Q, dated August 9, 2005, the Company is in discussions with several institutional investors and investment firms to renegotiate the duration and terms of its short term (convertible debenture) obligations.
The Company is also currently negotiating with a number of potential purchasers for the sale of business units that it has determined are not part of its long term strategy. The sales of these units could generate sufficient funds to satisfy debt coverage and cash flow needs for the near term.
Rosemary Mazanet, CEO, stated, 'We are implementing steps to provide for our intermediate term cash needs and we are pleased that our discussions with various investors and investment groups are progressing. We plan to share with our investors the results of those discussions and at the appropriate time a conference call will be held to more fully cover our progress. We appreciate the patience that our shareholders have shown during this difficult period. Management is optimistic that our efforts on behalf of all shareholders will be successful.'
Access Pharmaceuticals, Inc. Announces Second Quarter Financial Results
DALLAS, Aug. 10 /PRNewswire-FirstCall/ -- ACCESS PHARMACEUTICALS, INC. (Amex: AKC) today reported results for the second quarter ended June 30, 2005. The Company reported a net loss of $3,786,000, or $0.24 per share, for the second quarter, as compared to net loss of $2,553,000, or $0.17 per share, for the corresponding quarter in 2004. The net loss for the six month period ended June 30, 2005 was $6,208,000, or $0.40 per share, compared with a net loss of $4,904,000, or $0.33 per share for the corresponding period in 2004.
Revenue in the second quarter of 2005 was $249,000 compared to $68,000 in the same quarter of 2004, reflecting an increase in product sales ($201,000) offset by a decrease in licensing revenues ($20,000). For the six month period, revenue increased to $404,000 compared with $88,000 in the same period in 2004, reflecting an increase in product sales ($318,000) and royalty income ($11,000) offset by a decrease in licensing revenues ($13,000). Aphthasol(R) product sales recommenced in September 2004 which accounts for the sales increase in both comparison periods as there were no sales in 2004. There were licensing contracts signed and recognized in the second quarter 2004 that were not recurring in 2005 which accounts for the decrease in licensing revenues in both periods of 2005.
Operating expenses in the second quarter of 2005 were $3,600,000, an increase of $1,356,000 compared with 2004. This increase was due mainly to increased general and administrative expense ($1,044,000), research and development expense ($159,000) and cost of product sales ($147,000). The increase in general and administrative expenses was mainly due to the separation expenses with our former CEO relating to his employment and separation agreements ($839,000), royalty license expense ($150,000) and patent expenses ($22,000). Research and development expenses increased mainly due to OraDisc(TM) manufacturing pre-production costs ($132,000) and product and clinical costs for AP5346 ($86,000) offset by lower salary and related costs due to staff reductions ($52,000). Product sales costs increased due to increased Aphthasol(R) sales in 2005.
Operating expenses for the first six months of 2005 increased $1,546,000 to $5,874,000. Increased expenditures on general and administrative ($979,000), research and development ($334,000) and cost of product sales ($223,000). The increase in general and administrative expenses was mainly due to the separation expenses with our former CEO ($839,000) and royalty license expense ($150,000). Research and development expenses increased mainly due to product and clinical costs for AP5346 ($197,000) and manufacturing OraDisc(TM) pre-production costs ($113,000). Product sales costs increased due to increased Aphthasol(R) sales in 2005.
Other income (expense) for the second quarter of 2005 was a loss of $435,000 compared with a loss of $377,000 in the same quarter in 2004. Other income (expense) for the first six months of 2005 was a loss of $738,000 compared with a loss of $664,000 in the same period in 2004. The increased loss was due to additional interest and amortization of debt costs due to the Secured Convertible Notes.
Major events since the beginning of the last quarter include:
-- Ongoing negotiations with holders of convertible notes due
September 13, 2005.
-- Ongoing negotiations with parties to sell certain assets to provide
additional liquidity.
-- The hiring of our Acting CEO, Rosemary Mazanet, and the resignation
of our former CEO.
-- Meeting of our Clinical Advisory Board to discuss AP5346.
-- Closing our Australia laboratory.
-- Significant staff reductions in research and development.
Commenting on the results, spokesperson Stephen B. Thompson, Vice President & CFO of Access, stated, 'We currently have liquid assets to allow us to continue operations through August 31, 2005. Operating expenses were higher than with our 2005 plan due to the separation expenses with our former CEO and a one-time royalty license expense. During the remainder of this year we expect expenses to decrease as a result of staff reductions in August 2005, the closing of our Australia laboratory and reduction in non-critical project costs. We have negotiations underway with holders of our Convertible Notes which are due September 13, 2005. We are working to maintain the Company's priority projects and protect the Company's assets. We anticipate a conference call in the next few weeks to announce new business developments.'
Access Pharmaceuticals, Inc. is an emerging pharmaceutical company focused on developing both novel low development risk product candidates and technologies with longer-term major product opportunities. Access markets Aphthasol(R) and is developing products for other oral indications. Access is also developing unique polymer platinates for use in the treatment of cancer and has an extensive portfolio of advanced drug delivery technologies including vitamin mediated targeted delivery, oral delivery, and nanoparticle aggregates.
This press release contains certain statements that are forward-looking within the meaning of Section 27a of the Securities Act of 1933, as amended, and that involve risks and uncertainties, including but not limited to statements made relating to our current negotiations to sell certain assets and to restructure our Convertible Notes due September 13, 2005, our expected reduction in expenses and the maintenance of our projects and protection of our assets. These statements are subject to numerous risks, including but not limited to the uncertainties associated with our ability to raise funds to continue our operations, our ability to sell assets, our ability to restructure our Convertible Notes, research and development activities, clinical trials, our ability to raise capital, the timing of and our ability to achieve regulatory approvals, dependence on others to market our licensed products, collaborations, future cash flow, the timing and receipt of licensing and milestone revenues, projected future revenue growth and our ability to generate near term revenues, the future success of the Company's marketed products Aphthasol(R) and products in development including polymer platinate, and OraDisc(TM), our ability to develop products from our platform technologies, our ability to manufacture amlexanox products in commercial quantities, our sales projections and the sales projections of our licensing partners, our ability to achieve licensing milestones, our ability to repay our outstanding debt obligations and other risks detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2004, Quarterly Report on Form 10-Q for the quarter ended June 30, 2005 and other reports filed by us with the Securities and Exchange Commission.
Access Pharmaceuticals, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three months ended Six months ended
June 30, June 30,
2005 2004 2005 2004
Revenues
Licensing revenues $24,000 $44,000 $35,000 $48,000
Product sales 201,000 --- 318,000 ---
Royalty income 24,000 24,000 51,000 40,000
Total revenues 249,000 68,000 404,000 88,000
Expenses
Research and
development 1,440,000 1,281,000 2,759,000 2,425,000
Cost of product sales 178,000 31,000 280,000 57,000
General and
administrative 1,816,000 772,000 2,505,000 1,526,000
Depreciation and
amortization 166,000 160,000 330,000 320,000
Total expenses 3,600,000 2,244,000 5,874,000 4,328,000
Loss from operations (3,351,000) (2,176,000) (5,470,000) (4,240,000)
Other income (expense)
Interest and
miscellaneous income 12,000 35,000 22,000 68,000
Interest and other
expense (447,000) (412,000) (760,000) (732,000)
(435,000) (377,000) (738,000) (664,000)
Net loss $(3,786,000) $(2,553,000) $(6,208,000) $(4,904,000)
Basic and diluted
loss per common share $(0.24) $(0.17) $(0.40) $(0.33)
Weighted average
basic and diluted
common shares
outstanding 15,724,710 15,449,603 15,626,379 14,824,938
BALANCE SHEET DATA
June 30, 2005 December 31, 2004
(unaudited)
Cash and cash equivalents $784,000 $1,775,000
Short-term investments and certificates
of deposit 504,000 486,000
Restricted cash 169,000 1,285,000
Accounts receivable and inventory 871,000 916,000
Total assets 9,228,000 11,090,000
Convertible notes and other obligations 16,476,000 14,110,000
Accumulated deficit (70,673,000) (64,465,000)
Total stockholders' deficit (12,285,000) (6,661,000)
SOURCE Access Pharmaceuticals, Inc.
Access Pharmaceuticals, Inc. to Hold Conference Call to Discuss Recent Company Developments and Financial Results Following Filing of Its 10Q
DALLAS, July 25 /PRNewswire-FirstCall/ -- ACCESS PHARMACEUTICALS, INC. (Amex: AKC) today announced that it expects that it will file its 10Q for the quarter ended June 30, 2005 on or about August 9, 2005. A conference call will be scheduled soon thereafter to discuss the financials, as well as other corporate developments.
Rosemary Mazanet, M.D., Ph.D., acting CEO, will lead the call. Conference call details will be provided in the near future.
American Stock Exchange Accepts Access' Plan to Regain Compliance With Continued Listing Standards
DALLAS, July 1 /PRNewswire-FirstCall/ -- ACCESS PHARMACEUTICALS, INC. (Amex: AKC) today announced that the American Stock Exchange ('AMEX') has accepted the Company's plan to regain compliance with the continued listing standards by December 31, 2005.
In April 2005, the Company received notice from the AMEX Staff indicating that the Company is below certain of AMEX's continued listing standards, due to losses from continuing operations and/or net losses in two of its most recent fiscal years with shareholders' equity of less than $2 million, as set forth in Section 1003(a)(i) of the AMEX 'Company Guide'; due to losses from continuing operations and/or net losses in three of its most recent fiscal years with shareholders' equity of less than $4 million, as set forth in Section 1003(a)(ii) of the Company Guide; and due to losses from continuing operations and/or net losses in four of its most recent fiscal years with shareholders' equity of less than $6 million, as set forth in Section 1003(a)(iii) of the Company Guide. The Company was afforded the opportunity to submit a plan of compliance to AMEX and in May 2005 presented its plan to AMEX. On June 28, 2005, AMEX notified the Company that it accepted the Company's plan of compliance and granted the Company an extension of time to regain compliance with the continued listing standards. The Company will be subject to periodic review by AMEX Staff during the extension period, during which Access is required to make progress consistent with the plan and to regain compliance with the continued listing standards.
Access Pharmaceuticals, Inc. Announces Third Oral Drug Delivery Research Collaboration
DALLAS, May 12 /PRNewswire-FirstCall/ -- ACCESS PHARMACEUTICALS, INC. (Amex: AKC) today announced that it has commenced a third oral drug delivery research collaboration. This collaboration is aimed at combining Access' proprietary vitamin B12 oral drug delivery technology with the potential Alzheimer's Disease treatment drug, Oligotropin (HF0420) owned by UK-based biopharmaceutical company Hunter-Fleming Ltd.
The vitamin B12 oral drug delivery technology utilizes the body's natural transport system for vitamin B12. This receptor-mediated process actively transports vitamin B12 from the gut to the blood stream. Access' scientists have found that the attachment of vitamin B12 to drugs, polymers containing drugs, as well as drugs encapsulated within nanoparticles, provide formulations which are absorbed into the body using the vitamin B12 uptake mechanism.
Oligotropin (HF0420) has been shown in vivo to be not only neuroprotective, but to have neurotrophic/neurorepair activity and to reduce behavioral deficits in the elderly. The compound has already completed Phase I(a) studies. It is orally active and the collaboration is intended to improve oral bioavailability.
Commenting on the agreement, David P. Nowotnik, Ph.D., Senior Vice President R&D stated, 'Oligotropin (HF0420) is an exciting compound with considerable potential which would benefit from an enhancement of oral bioavailability. As such, it is an ideal candidate for our vitamin B12 oral drug delivery technology. Access has developed an extensive preclinical data package which confirms the potential of receptor-based oral delivery using our vitamin B12 technology. Our collaboration with Hunter-Fleming is our third oral drug delivery collaboration, demonstrating the strong interest in this technology to provide solutions to drug delivery challenges.'
Access Pharmaceuticals, Inc. is an emerging pharmaceutical company focused on developing both novel low development risk product candidates and technologies with longer-term major product opportunities. Access markets Aphthasol(R) and is developing products for other oral indications. Access is also developing unique polymer platinates for use in the treatment of cancer and has an extensive portfolio of advanced drug delivery technologies including vitamin-mediated targeted delivery, oral delivery, and nanoparticle aggregates.
Hunter-Fleming Ltd. is a private UK pharmaceutical research and development Company founded in 1999. The Company provides innovative ethical pharmaceutical products to multi-national pharmaceutical companies for late stage clinical development and worldwide marketing. Hunter-Fleming is focused on the development of novel treatments including HF0420, for inflammatory degenerative disorders and has three of its candidate products in clinical trials.
This press release contains certain statements that are forward-looking within the meaning of Section 27a of the Securities Act of 1933, as amended, and that involve risks and uncertainties, including but not limited to statements made relating to projected product revenues, potential additional licensing arrangements, the amlexanox approval process, projections from our licensing partners for amlexanox sales, expected milestone payments, and the markets for amlexanox paste and OraDisc(TM) A. These statements are subject to numerous risks, including but not limited to the uncertainties associated with research and development activities, clinical trials, our ability to raise capital, the timing of and our ability to achieve regulatory approvals, dependence on others to market our licensed products, collaborations, future cash flow, the timing and receipt of licensing and milestone revenues, projected future revenue growth and our ability to generate near term revenues, the future success of the Company's marketed products Aphthasol(R) and products in development including polymer platinate, and OraDisc(TM), our ability to develop products from our platform technologies, our ability to manufacture amlexanox products in commercial quantities, our sales projections and the sales projections of our licensing partners, our ability to achieve licensing milestones and other risks detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2004, and other reports filed by us with the Securities and Exchange Commission.
SOURCE Access Pharmaceuticals, Inc.
Source: PR Newswire (May 12, 2005 - 9:01 AM EDT)
