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EntreMed Inc. Reports Operating Results (10-Q)

August 06, 2009 | About:

EntreMed Inc. (ENMD) filed Quarterly Report for the period ended 2009-06-30.

EntreMed Inc. is a clinical-stage biopharmaceutical company developing and testing product candidates that address the role of blood and blood vessels in health and disease. They are primarily focused on developing antiangiogenic drugs designed to inhibit the abnormal new blood vessel growth associated with cancer as well as a broad range of diseasesincluding certain types of blindness and atherosclerosis. EntreMed Inc. has a market cap of $54.7 million; its shares were traded at around $0.6175 with and P/S ratio of 7.3.

Highlight of Business Operations:

Additionally, we must continually maintain (1) stockholders equity of at least $2.5 million or (2) a minimum of $35 million in market value of our listed securities for ten consecutive trading days to be in compliance with the continued listing standards for the NASDAQ Capital Market. At June 30, 2009, our consolidated stockholders deficit was $416,000 and the market value of our listed securities was $43 million. We cannot guarantee that we will be able to meet either of these listing standards in the future. If we do not meet one of these NASDAQ listing requirements, we will be in a deficiency period and will submit a plan of compliance with NASDAQ. After the deficiency period, if we are unable to successfully appeal to the NASDAQ Listing Qualification Staff and Hearings Panel for an extension of time to regain compliance, our common stock could be delisted from the NASDAQ Capital Market, and we may seek a market maker to permit our stock to trade on the Over-The-Counter Bulletin Board, an electronic quotation system that displays stock quotes by market makers. There can be no assurance that our common stock would be timely admitted by a market maker for trading on that market. This alternative may result in a less liquid market available for existing and potential shareholders to buy and sell shares of our stock and could further depress the price of our stock.

totaled $85,317 and $240,450, respectively. Share-based compensation expense recognized in the comparable periods in 2008 totaled $300,735 and $518,916, respectively.

Reflected in our R&D expenses totaling $1,659,000 for the three-month period ended June 30, 2009 are direct project costs of $1,134,000 for ENMD-2076, $76,000 for MKC-1 and $17,000 for Panzem® oncology. The 2008 research and development expenses for the comparable period included $1,038,000 for ENMD-2076, $792,000 for MKC-1, $597,000 direct project costs for Panzem® oncology and $1,542,000 for ENMD-1198.

Research and development expenses totaling $3,613,000 for the six-month period ended June 30, 2009 include direct project costs of $1,906,000 related to ENMD-2076, $338,000 related to MKC-1 and $124,000 related to Panzem® oncology. The 2008 research and development expenses for the comparable period included $1,799,000 for ENMD-2076, $1,969,000 for MKC-1, $2,342,000 for Panzem® oncology and $2,649,000 for ENMD-1198.

At June 30, 2009, accumulated direct project expenses for Panzem® were $54,242,000, direct ENMD-1198 project expenses totaled $13,060,000; accumulated direct project expenses for MKC-1 totaled $10,295,000, since acquired; and for ENMD-2076, accumulated project expenses totaled $11,028,000. Our R&D expenses also include non-cash stock-based compensation, pursuant to the adoption of SFAS 123R, totaling $24,000 and $81,000, respectively, for the three and six months ended June 30, 2009 and $65,000 and $121,000 for the respective corresponding 2008 periods. The balance of our R&D expenditures includes facilities costs and other departmental overhead, and expenditures related to the advancement of our pre-clinical programs.

Also reflected in our research and development expenses for the three-month period ended June 30, 2009 are personnel costs of $507,000, patent costs of $87,000 and facility and related expenses of $143,000. In the corresponding 2008 period, these expenses totaled $1,517,000, $153,000 and $379,000, respectively. For the six-month period ended June 30, 2009, personnel costs were $1,132,000, patent costs were $256,000 and facility and related expenses were $375,000. In the corresponding 2008 period, these expenses totaled $3,020,000, $304,000 and $749,000, respectively. These decreased expenses result from our corporate restructuring at the end of 2008, which significantly reduced our research and development staff and our facility rental costs.

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