ImaRx Therapeutics Reports Second Quarter Ended 2008 Financial Results

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| Source: ImaRx Therapeutics, Inc.

TUCSON, Ariz., Aug. 14, 2008 (PRIME NEWSWIRE) -- ImaRx Therapeutics, Inc. (Nasdaq:IMRX), a biopharmaceutical company with a commercial product, urokinase, and a research and development program focused on the development of new treatments for vascular disorders leveraging its proprietary SonoLysis technology, today reported financial results for the quarter ended June 30, 2008.

Corporate Updates:



    * The Company continues to conduct the additional testing
      procedures required by the FDA in order to obtain the FDA's
      approval of the transfer of the urokinase stability program
      and authorization to release the previously submitted lots of
      urokinase for commercialization.  The Company intends to
      complete the additional urokinase stability testing and submit
      the data to the FDA by the end of the third quarter 2008.  If
      the data are sufficient for the FDA to approve release of the
      lots, the Company may be in a position to begin sales of its
      labeled vials of urokinase with extended expiration dating in
      the fourth quarter of this year.

    * The Company previously announced a significant corporate
      restructuring that included a reduction in force of all but
      two employees.  In addition, ImaRx announced it would commence
      exploring strategic alternatives for its commercial urokinase
      assets, clinical-stage SonoLysis program as well as its other
      company assets to enhance shareholder value. The Company
      continues to evaluate various strategic alternatives and
      intends to provide further updates as such alternatives are
      finalized.

Financial Results

Revenue remained constant at $2.1 million for the second quarter ended June 30, 2008 and 2007. Revenue for the six months ended June 30, 2008 increased to $4.1 million from $3.4 million for the same period in the prior year. The increase is primarily due to increased sales of our urokinase product.

Net loss for the second quarter of 2008 was $7.3 million compared to a net loss of $1.9 million for the same period last year. This change was primarily a result of a $10.0 million asset impairment charge and $0.8 million of costs associated with restructuring offset partially by the $5.6 million gain on extinguishment of debt in relation to the non-recourse note payable to Abbott Laboratories. Net loss per share attributable to common shareholders for the second quarter of 2008 was $0.72 based on weighted average shares of approximately 10.1 million, compared to net loss attributable to common shareholders in the same period last year of $0.74 based on weighted average shares of approximately 2.6 million.

Net loss for the six months ended June 30, 2008 was $9.8 million compared to a net loss of $4.8 million for the same period last year. This change was primarily a result of a $10.0 million asset impairment charge, $0.8 million of costs associated with restructuring and increased general and administrative costs offset partially by the $5.6 million gain on extinguishment of debt in relation to the non-recourse note payable to Abbott Laboratories. Net loss per share attributable to common shareholders for the second quarter of 2008 was $0.97 based on weighted average shares of approximately 10.1 million, compared to net loss per share attributable to common shareholders in the same period last year of $1.82 based on weighted average shares of approximately 2.6 million.

Cost of product sales for the second quarter of 2008 totaled $0.9 million compared to $1.0 million for the second quarter of 2007. Cost of product sales for the six months ended June 30, 2008 was $1.8 million compared to $1.4 million in the prior year period. This increase is related to the increase in the number of vials sold through to hospitals or other end users. The cost of product sales includes the price paid to acquire the urokinase inventory as well as labeling costs directly incurred in bringing the product to market.

Research and development expenses decreased to $1.0 million for the second quarter of 2008 compared to $1.6 million for the same period last year. The change was primarily a result of lower clinical trial costs due to the wind down of our clinical trial and reduced stock-based compensation expense as a result of higher forfeitures. Research and development expenses for the six months ended June 30, 2008 decreased to $2.6 million from $3.1 million in the prior year period. This decrease was principally a result of reduced clinical trial costs, laboratory supply and travel costs due to the reduction in research activities offset partially by an increase in work performed by third parties on grants.

General and administrative expenses for the second quarter of 2008 increased to $3.0 million from $1.2 million for the same period last year resulting mainly from severance costs and other costs associated with restructuring activities as well as increased marketing costs for our product rebranding efforts. General and administrative expenses for the six months ended June 30, 2008 increased to $5.0 million from $2.6 million for the same period last year resulting primarily from severance costs, an increase in costs associated with maintaining public company infrastructure and increased marketing costs for our product rebranding efforts offset partially by a decrease in amortization expense.

On June 30, 2008, ImaRx had $2.1 million in cash and cash equivalents compared to $12.9 million in cash and cash equivalents on December 31, 2007. The decrease in the cash balance was primarily related to cash used in performing operating activities, severance payments and the $5.2 million payment to satisfy all outstanding liabilities to Abbott Laboratories. With the restructuring activities announced on June 11, 2008, management believes that there will be sufficient cash resources to fund operations into the fourth quarter 2008.

About ImaRx Therapeutics

ImaRx Therapeutics is a biopharmaceutical company with a commercial product, urokinase, and a research and development program focused on the development of new treatments for vascular disorders leveraging its proprietary SonoLysis technology.

The ImaRx Therapeutics, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=5321

Cautionary Statement For The Purpose Of The "Safe Harbor" Provisions Of The Private Securities Litigation Reform Act of 1995

Note: Statements made in this press release which are not historical in nature constitute forward-looking statements for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Such statements include those related to the FDA's approval of the Company's transfer of the urokinase stability testing program and release of urokinase lots for commercialization, the company's search for strategic alternatives to enhance shareholder value and, management belief that there will be sufficient cash resources to fund operations into the fourth quarter 2008. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. A more complete description of these risks and the event that may cause such events not to occur can be found in the Company's filings with the Securities and Exchange Commission. All information in this press release is as of August 14, 2008, and the Company undertakes no duty to update this information.



                           ImaRx Therapeutics, Inc.
                     Consolidated Statements of Operations
                (in thousands except share and per share data)

                     Three Months Ended        Six Months Ended
                          June 30                  June 30
                 ------------------------  ------------------------
                     2007         2008         2007         2008
                 -----------  -----------  -----------  -----------
                        (unaudited)

 Revenues:
 Product sales,
  net            $     1,992  $     2,040  $     3,078  $     3,889
 Research and
  development            161          106          283          201
                 -----------  -----------  -----------  -----------
   Total
    operating
    revenue            2,153        2,146        3,361        4,090
 Costs and
  expenses:
  Cost of product
   sales                 959          925        1,420        1,759
  Research and
   development         1,606        1,033        3,143        2,600
  General and
   administrative      1,158        2,994        2,582        4,988
  Asset
   Impairment             --        9,978           --        9,978
                 -----------  -----------  -----------  -----------
   Total cost
    and expenses       3,723       14,930        7,145       19,325
                 -----------  -----------  -----------  -----------
 Operating loss       (1,570)     (12,784)      (3,784)     (15,235)
  Interest and
   other income,
   net                    89          (58)         130           36
  Interest
   expense              (225)         (30)        (450)        (203)
  Gain on
   extinguishment
   of debt               219        5,602          219        5,602
                 -----------  -----------  -----------  -----------
 Net loss             (1,487)      (7,270)      (3,885)      (9,800)

 Accretion of
  dividends on
  preferred stock       (434)          --         (867)          --
                 -----------  -----------  -----------  -----------
 Net loss
  attributed to
  common
  stockholders   $    (1,921) $    (7,270) $    (4,752) $    (9,800)
                 ===========  ===========  ===========  ===========

 Basic loss per
  common share:
   Loss from
    continuing
    operations   $     (0.74) $     (0.72) $     (1.82) $     (0.97)
                 ===========  ===========  ===========  ===========

 Shares used in
  computing net
  loss per share:
  -- Basic         2,606,019   10,087,238    2,605,968   10,067,072

                            ImaRx Therapeutics, Inc.

                  Selected Balance Sheet Data (in thousands)

                                          December 31,   June 30,
                                              2007         2008
                                           ----------   ----------
                    ASSETS                              (unaudited)
 Current assets:
  Cash and cash equivalents                $   12,861   $    2,146
  Restricted cash                                 388           --
  Accounts receivable, net                        349           28
  Inventory                                    11,138        2,500
  Inventory subject to return                   2,560        1,309
  Assets held for sale                             --          279
  Prepaid expenses and other                      589          201
                                           ----------   ----------
 Total current assets                          27,885        6,463
 Long-term assets:
  Property and equipment, net                   1,170          112
  Intangible assets, net                        1,633           --
  Other                                            19           --
                                           ----------   ----------
 Total assets                              $   30,707   $    6,575
                                           ==========   ==========
   LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:
  Accounts payable                         $    1,277   $    1,459
  Accrued expenses                                837          591
  Accrued chargebacks and administrative
   fees                                         1,317        1,069
  Deferred revenue                              5,373        2,640
  Notes payable and accrued interest           11,698           --
  Other                                            --          247
                                           ----------   ----------
 Total current liabilities                     20,502        6,006
 Total stockholders' equity                    10,205          569
                                           ----------   ----------
 Total liabilities and stockholders'
  equity                                   $   30,707   $    6,575
                                           ==========   ==========
ImaRx Therapeutics, Inc. 
Bradford A. Zakes, President and CEO
520-770-1259