PARSIPPANY, N.J., March 31 /PRNewswire-FirstCall/ -- Arno Therapeutics, Inc. (OTC Bulletin Board: ARNI), a clinical-stage biopharmaceutical company focused on oncology therapeutics, today announced its financial results for the year ended December 31, 2008.
For the year ended December 31, 2008, Arno reported a net loss of $12.9 million, or $0.81 per share, compared to a net loss of $3.4 million, or $0.34 per share, for the year ended 2007. Total operating expenses for the year ended December 31, 2008 were $12.1 million, an increase of $8.8 million compared to the year ended 2007. Included in operating expenses for the years ended December 31, 2008 and 2007 were non-cash stock-based compensation expenses of $1.1 million and $0.1 million, respectively. The increase in operating expenses in 2008 was primarily attributed to clinical and pre-clinical development expenses of our three drug candidates, merger related fees and increased headcount.
Total research and development expenses for the year ended December 31, 2008 were $9.8 million, compared to $2.9 million in 2007. Research and development expenses for the years ended 2008 and 2007 included non-cash stock-based compensation expenses of $0.5 million and $0.1 million, respectively. The increase in research and development expenses of $6.9 million for the year ended 2008 compared to 2007 was primarily attributed to clinical development costs associated with AR-67, our lead clinical development compound which has completed Phase I enrollment, in addition to the in-licensing and pre-clinical development costs associated with our other two drug candidates AR-12 and AR-42, which we in-licensed in 2008.
General and administrative expenses for the year ended 2008 were $2.3 million compared to $0.4 million for the year ended 2007. General and administrative expenses for the years ended 2008 and 2007 included non-cash stock-based compensation expenses of $0.7 million and $39K, respectively. The increase in general and administrative expenses of $1.9 million for the year ended 2008 compared to 2007 was primarily attributed to merger related fees incurred in June 2008, in addition to the hiring of our Chief Executive and Chief Financial Officers during 2008.
Net cash used in operating activities for the year ended December 31, 2008 was $8.9 million, compared to $1.8 million in 2007. The increased use of cash for the year ended 2008 compared to 2007 is primarily driven by the development costs associated with the progress of our three drug candidates, in addition to increased headcount costs during 2008. As of December 31, 2008, cash and cash equivalents totaled $10.4 million, compared to $1.6 million as of December 31, 2007. The increase of cash from 2007 is a result of receiving $17.8 million in gross proceeds from the private placement of our common stock in June 2008, offset by expenditures required to complete Phase I enrollment of our drug candidate AR-67, costs associated to in-licensing and pre-clinical development efforts for AR-12 and AR-42, in addition to infrastructure support.
"We are very pleased with our progress in 2008 and achievements for Arno, as our lead drug candidate, AR-67 completed Phase I enrollment, and we in-licensed our other two drug candidates AR-12 and AR-42. We look forward to advancing AR-67 into Phase II trials, as well as initiating a Phase I trial for AR-12 during 2009," stated Roger Berlin, MD, Chief Executive Officer.
About Arno Therapeutics
Arno Therapeutics, Inc. is a clinical-stage biopharmaceutical company that develops and commercializes innovative products for the treatment of cancer patients. Arno's lead clinical development compound is AR-67, a novel, third-generation camptothecin analogue which has completed patient enrollment of its Phase I studies in patients with advanced solid tumors, that has demonstrated high preclinical potency and improved pharmacokinetic properties when compared with marketed second-generation products in its class. Arno is also developing two pre-clinical compounds. AR-12 is a potential first-in-class, orally available PDK1 inhibitor that blocks the PI3K/Akt pathway undergoing IND-enabling studies. AR-42 is an orally available, targeted inhibitor of the Pan-DAC and Akt pathways that received FDA acceptance of its IND in the first quarter of 2009.
For more information on Arno please visit www.arnothera.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding the timing, progress and anticipated results of the clinical development, regulatory processes, potential clinical trial initiations, potential IND and NDA filings, as well as our strategy, future operations, outlook, milestones, the success of Arno's product development, future financial position, future financial results, plans and objectives of management, are forward-looking statements. We may not actually achieve these plans, intentions or expectations and Arno cautions investors not to place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. Various important factors that could cause actual results or events to differ materially from the forward-looking statements that we make are described in greater detail in the reports we file with Securities and Exchange Commission, including those described under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2008. Arno is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise.
ARNO THERAPEUTICS, INC. (a development stage company) BALANCE SHEETS December 31, 2008 December 31, 2007 ASSETS Current assets Cash and cash equivalents $10,394,749 $1,646,243 Prepaid expenses 315,014 74,092 Total current assets 10,709,763 1,720,335 Deferred financing fees, net - 13,541 Property and equipment, net 63,584 38,193 Restricted cash 44,276 - Security deposit 12,165 12,165 TOTAL ASSETS $10,829,788 $1,784,234 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) Current liabilities Accounts payable $2,493,658 $111,474 Accrued expenses and other liabilities 450,713 1,120,028 Due to related party 5,616 583 Total current liabilities 2,949,987 1,232,085 Deferred rent 17,393 151 Convertible notes and Accrued interest payable - 4,179,588 TOTAL LIABILITIES 2,967,380 5,411,824 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY (DEFICIENCY) Preferred stock, $0.0001 par value: 20,000,000 shares authorized, 0 shares issued and outstanding - - Common stock, $0.0001 par value: 80,000,000 shares authorized, 20,392,024 and 9,968,797 shares issued and outstanding, respectively 2,039 997 Additional paid-in capital 24,504,525 102,003 Deficit accumulated during the development stage (16,644,156) (3,730,590) TOTAL STOCKHOLDERS' EQUITY (DEFICIENCY) 7,862,408 (3,627,590) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) $10,829,788 $1,784,234
ARNO THERAPEUTICS, INC. (a development stage company) STATEMENTS OF OPERATIONS Cumulative Period Year Ended Year Ended from August 1, 2005 December 31, December 31, (inception) Through 2008 2007 December 31, 2008 OPERATING EXPENSES Research and development $9,768,389 $2,899,264 $13,033,486 General and administrative 2,315,178 360,349 2,680,587 Total Operating Expenses 12,083,567 3,259,613 15,714,073 LOSS FROM OPERATIONS (12,083,567) (3,259,613) (15,714,073) OTHER INCOME (EXPENSE) Interest income 206,054 123,962 330,016 Interest expense (1,036,053) (224,046) (1,260,099) Total Other Income (Expense) (829,999) (100,084) (930,083) NET LOSS $(12,913,566) $(3,359,697) $(16,644,156) NET LOSS PER SHARE - BASIC AND DILUTED $(0.81) (0.34) WEIGHTED AVERAGE SHARES OUTSTANDING 16,022,836 9,968,797
|SOURCE Arno Therapeutics, Inc.|
Copyright©2009 PR Newswire.
All rights reserved