EntreMed Reports Fourth Quarter And Year-End 2012 Financial Results And Business Outlook For 2013

   EntreMed Reports Fourth Quarter And Year-End 2012 Financial Results And
                          Business Outlook For 2013

PR Newswire

ROCKVILLE, Md., March 21, 2013

ROCKVILLE, Md., March 21, 2013 /PRNewswire/ -- EntreMed, Inc. (Nasdaq: ENMD),
a clinical-stage pharmaceutical company developing therapeutics for the
treatment of cancer, today reported results for the three months and twelve
months ended December 31, 2012.

(Logo: http://photos.prnewswire.com/prnh/20010620/ENMDLOGO )

The Company reported a net loss of ($0.4 million), or ($0.02) per share for
the three months ended December 31, 2012. This compares with net income of
$1.0 million, or $0.06 per share for the fourth quarter 2011. The increase in
net loss is directly attributed to the decrease in revenues from royalties
earned from Celgene Corporation's sales of Thalomid^® in the fourth quarter of
fiscal 2012 compared to fiscal 2011.

For the year ended December 31, 2012 the net loss, excluding non-cash interest
expense, was ($4.5 million), or ($0.25) per share as compared to ($4.6
million), or ($0.47) per share for 2011. The reported net loss for the year
ended December 31, 2012 included non-cash interest charges totaling $10.0
million associated with the Company's 2012 financing, recorded in accordance
with US generally accepted accounting principles. Including the non-cash
interest expense, the reported net loss for the year ended December 31, 2012
was ($14.5 million), or ($0.78) per share.

As of December 31, 2012, EntreMed had cash and cash equivalents of
approximately $8.0 million. The cash position has since been strengthened by
approximately $10.3 million in net proceeds from a financing which was
completed on March 14, 2013.

Sara B. Capitelli, Vice President, Finance and Principal Accounting Officer,
commented, "Our financial results for the fourth quarter are in line with our
expectations. Our research and development expenses for the fourth quarter
increased compared to the previous year as we began operations in China in
2012 and also initiated a dual-institutional Phase 2 study of ENMD-2076 in
triple-negative breast cancer. We anticipate operating expenses to increase
in 2013 as we execute on our clinical development plan in the US and China.
Royalty revenues from Celgene's sales of Thalomid^® in 2012 were $0.7 million,
compared to $1.9 million in 2011. The decrease in royalty revenues was in
line with our expectations and results from a decline in sales of Thalomid^®
in the United States." Further up-to-date information regarding the Company,
including our Annual Report on Form 10-K for the fiscal year ended December
31, 2012, can be found on our web site at www.entremed.com.

Dr. Ken Ren, Chief Executive Officer, commented, "We are pleased with our
financial results for the year and quarter ended December 31, 2012, which
reflect our success in reducing operating costs and at the same time reflect
new costs for implementing new programs, including initiating our Phase 2
triple-negative breast trial at two US sites, establishing our office in
Beijing, initiating local manufacturing activities in China, and the filing of
a new clinical trial application with the Chinese SFDA. Since the year ended,
we also initiated a Phase 2 clinical trial in advanced metastatic soft tissue
sarcoma at Princess Margaret Hospital in Canada. We are pleased with our
recent financing and the support and encouragement from new institutional
shareholders from both the US and China. We intend to use the proceeds to
further the global clinical development of ENMD-2076 and for general business
development and corporate purposes."

Dr. Ren continued, "In terms of our outlook for 2013, we remain focused on
building a leading oncology enterprise that integrates US and China strategies
and resources for cost effective drug development. We intend to achieve the
following objectives:

  oContinue the development of ENMD-2076, including initiating global
    clinical trials with sites in China under our U.S. FDA IND, and in
    parallel, pursuing local development in China under SFDA;
  oPursue an additional clinical-stage drug candidate to add to our pipeline;
  oFurther develop our regulatory and clinical capability in China.

With the foundation established through our achievements in 2012 and our
recent financing, we believe that we are well positioned to accomplish these
objectives and look forward to continued progress in 2013."

About EntreMed

EntreMed, Inc. is a clinical-stage pharmaceutical company employing a drug
development strategy primarily in the United States and China to develop
targeted therapeutics for the global market. Its lead compound, ENMD-2076, a
selective angiogenic kinase inhibitor, has completed several Phase 1 studies
in solid tumors, multiple myeloma, and leukemia, and is currently completing a
multi-center Phase 2 study in ovarian cancer. EntreMed, Inc. recently
announced the initiation of a Phase 2 study of ENMD-2076 in triple-negative
breast cancer and the initiation of a Phase 2 study of ENMD-2076 in
advanced/metastatic soft tissue sarcoma. Additional information about
EntreMed is available on the Company's web site at www.entremed.com and in
various filings with the Securities and Exchange Commission (the SEC).

About ENMD-2076

ENMD-2076 is an orally-active, Aurora A/angiogenic kinase inhibitor with a
unique kinase selectivity profile and multiple mechanisms of action.
ENMD-2076 has been shown to inhibit a distinct profile of angiogenic tyrosine
kinase targets in addition to the Aurora A kinase. Aurora kinases are key
regulators of mitosis (cell division), and are often over-expressed in human
cancers. ENMD-2076 also targets the VEGFR, Flt-3 and FGFR3 kinases which have
been shown to play important roles in the pathology of several cancers.
ENMD-2076 has shown promising activity in Phase 1 clinical trials in solid
tumor cancers, leukemia, and multiple myeloma. ENMD-2076 is currently
completing a Phase 2 trial for ovarian cancer. EntreMed, Inc. recently
initiated a dual-institutional Phase 2 study of ENMD-2076 in triple-negative
breast cancer.

Forward Looking Statements

This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act with respect to the outlook for
expectations for future financial or business performance, strategies,
expectations and goals. Forward-looking statements are subject to numerous
assumptions, risks and uncertainties, which change over time. Forward-looking
statements speak only as of the date they are made, and no duty to update
forward-looking statements is assumed.

Actual results could differ materially from those currently anticipated due to
a number of factors, including: the risk that we may be unable to continue as
a going concern as a result of our inability to raise sufficient capital for
our operational needs; the possibility that we may be delisted from trading on
the Nasdaq Capital Market; the volatility of our common stock; the difficulty
of executing our business strategy in China; our inability to enter into
strategic partnerships for the development, commercialization, manufacturing
and distribution of our proposed product candidate; risks relating to the need
for additional capital and the uncertainty of securing additional funding on
favorable terms; declines in actual sales of Thalomid® resulting in reduced
royalty payments; risks associated with our product candidates; any
early-stage products under development; results in preclinical models are not
necessarily indicative of clinical results; uncertainties relating to
preclinical and clinical trials, including delays to the commencement of such
trials; the lack of success in the clinical development of any of our
products; dependence on third parties; and risks relating to the
commercialization, if any, of our proposed products (such as marketing,
safety, regulatory, patent, product liability, supply, competition and other
risks). Such factors, among others, could have a material adverse effect upon
our business, results of operations and financial condition. We caution
readers not to place undue reliance on any forward-looking statements, which
only speak as of the date made. Additional information about the factors and
risks that could affect our business, financial condition and results of
operations, are contained in our filings with the U.S. Securities and Exchange
Commission ("SEC"), which are available at www.sec.gov.



COMPANY CONTACT:

Investor Relations
EntreMed, Inc.
240.864.2643
investorrelations@entremed.com

(Financial Table Attached)



ENTREMED, INC.
SUMMARY OF OPERATING RESULTS
Three Months Ended
December 31,
                                                                          2012          2011
Total revenues             $  669,310   $1,932,035
Research and development                     $  494,712   $  405,936
General and administrative                    $  535,096   $  521,906
Net (loss) income            $ (360,430)   $1,004,522
Dividend on Series A convertible preferred stock                 -             $ (251,250)
Net (loss) income attributable to common shareholders                  $ (360,430)   $  753,272
Net (loss) income per share attributable to                               $          $    
common shareholders (basic and diluted)                     (0.02)        0.06
Weighted average number of
shares outstanding (basic and                                             22,503,393    12,158,099
diluted)
Twelve Months Ended
December 31,
                                                                          2012          2011
Total revenues          $   669,310 $ 1,940,887
Research and development                     $ 2,375,339  $ 3,457,373
General and administrative                     $ 2,797,971  $ 3,051,511
Interest expense, net                   $10,041,224   -
Net loss            $(14,545,224) $(4,558,495)
Dividend on Series A convertible preferred stock                  $  (335,000) $(1,005,000)
Net loss attributable to common shareholders                      $(14,880,224) $(5,563,495)
Net loss per share attributable to                                        $         $    
common shareholders (basic and diluted)                            (0.78)        (0.47)
Weighted average number of
shares outstanding (basic and                                             19,055,064    11,781,119
diluted)
Cash and Cash Equivalents                      $ 8,049,237  $ 1,080,630



SOURCE EntreMed, Inc.

Website: http://www.entremed.com
 
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