http://www.wexpharma.com () —
WEX Pharmaceuticals Inc. ("WEX" or the "Company") (TSX: WXI) reported
events and financial results for the three-month and nine-month
periods ended September 30, 2010. All amounts, unless specified
otherwise, are in Canadian dollars.
Third Quarter Highlights and Subsequent Events
-- During the quarter ended September 30, 2010, the Company continued to
focus its efforts and resources on the Canadian pivotal trials for TTX,
TEC-006 and TEC-006OL. As of November 12, 2010, the Company has 13
active sites and has enrolled 91 patients in the TEC-006 trial. About
67% of the patients who completed the TEC-006 trial chose to enrol in
TEC-006OL.
-- The Data Monitoring Committee ("DMC") has undertaken its scheduled
interim analysis of the TEC-006 clinical trial. Based on a review of the
safety and efficacy assessments for 60 evaluable patients, the DMC
informed the Company that the trial was unlikely to demonstrate a
clinically meaningful treatment-effect difference between TTX and
placebo based on the primary composite efficacy endpoint. However, the
DMC determined that with an increase in sample size, the trial may
demonstrate a difference in efficacy based on one or more components of
the composite endpoint.
-- The Company met with Health Canada in October to discuss the outcome of
the interim analysis. Health Canada agreed that the Company could
continue the trial and that WEX should file a protocol amendment to add
one or more co-primary endpoints to improve the chances of the trial
successfully meeting a prospectively defined endpoint. Adjusting for
multiple co-primary endpoints, which was not presented by the DMC in
their analysis, and to increase the likelihood of success, the trial
would need to enrol a total of between 238 and 254 evaluable patients,
depending on the number of co-primary endpoints. Aside from a revision
to the statistical analysis plan to account for the co-primary
endpoints, all other aspects of the trial protocol would remain
unchanged. The Company is continuing patient enrolment while evaluating
the clinical and commercial feasibility of implementing these changes.
-- On July 12, 2010, Pharmagesic (Holdings) Inc. ("Pharmagesic"), a wholly
owned subsidiary of CK Life Sciences Int'l (Holdings) Inc., ("CKLS")
announced its intention to make an unsolicited take-over bid (the
"Offer") for all of WEX's outstanding restricted voting shares not
currently held by Pharmagesic at an offer price of $0.13 cash per share.
Pharmagesic is the holder of approximately 88.7% of WEX's issued and
outstanding restricted voting shares and the sole Class A Share. The
board of directors of WEX has formed a special committee of independent
directors (the "Special Committee") to review and respond to the
proposal. As the Offer will be an "insider bid" under applicable
securities laws the Special Committee engaged Ernst & Young LLP to
conduct a valuation of WEX's restricted voting shares. The valuation has
not yet been completed. Pharmagesic has advised that its preparedness to
proceed with the Offer is subject to the outcome of the valuation. If
Pharmagesic makes an offer to acquire the remaining 11.3% of the
Company's restricted voting shares, Pharmagesic will be required to
deliver a take-over bid circular describing its offer. The Company's
board of directors will then prepare a directors' circular that includes
a recommendation to shareholders and a discussion of the review process
adopted by the board of directors and the Special Committee of the
insider bid, including a discussion of any materially contrary view or
abstention by a director and any material disagreement between the board
and the Special Committee.
Financial Results - Unaudited
For the three months ended September 30, 2010, the Company recorded a
loss of $2.37 million ($0.01 per share) compared to a loss of $2.04
million ($0.03 per share) in the same period in the preceding year.
The increase in loss of $0.33 million for the three months ended
September 30, 2010, when compared to the same period in the preceding
year, is mainly attributable to the increased in research and
development expenditures for the TEC-006 and TEC-006OL clinical trials
and asset impairment loss offset by the elimination of interest
expense on a convertible debenture due to its conversion into
restricted voting shares in October 2009.
For the nine months ended September 30, 2010, the Company recorded a
loss of $5.34 million ($0.01 per share) compared to a loss of $6.68
million ($0.11 per share) in the same period in the preceding year.
The decrease in loss of $1.34 million for the nine months ended
September 30, 2010, when compared to the same period in the preceding
year, is mainly attributable to the elimination of interest expense on
convertible debenture due to the conversion into restricted voting
shares on October 2009 offset by asset impairment loss and decrease in
net loss from discontinued operation.
The Company had cash and short-term investments of $19.38 million as
at September 30, 2024 compared to $5.20 million at December 31, 2009.
For further details, please refer to the unaudited Interim
Consolidated Financial Statements and Management's Discussions and
Analysis for the three and nine month periods ended September 30, 2024
on www.sedar.com (http://www.sedar.com) .
About WEX Pharmaceuticals Inc.
WEX Pharmaceuticals Inc. is dedicated to the discovery, development,
manufacture and commercialization of innovative drug products to treat
pain. The Company's principal business strategy is to derive drugs
from naturally occurring toxins and develop proprietary products for
the global market.
Forward Looking Statements and Information
Certain statements herein may contain forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. Forward-looking statements or information appear in a
number of places and can be identified by the use of words such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate" or "believes" or variations of such words and
phrases or statements that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements and information are subject to such risks,
uncertainties and other factors which may cause our actual results,
performance or achievements, or industry results, to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements or
information. See our annual information form and our quarterly and
annual management's discussion and analysis for additional information
on risks and uncertainties relating to the forward-looking statement
and information. There can be no assurance that forward-looking
statements or information referenced herein will prove to be accurate,
as actual results and future events could differ materially from those
anticipated in such statements or information. Also, many of the
factors are beyond the control of the Company. Accordingly, readers
should not place undue reliance on forward-looking statements or
information. All forward-looking statements and information made
herein, are qualified by this cautionary statement.