Arno Therapeutics Announces Second Quarter 2008 Financial Results
FAIRFIELD, N.J., Aug. 18 /PRNewswire-FirstCall/-- Arno Therapeutics, Inc. (OTC Bulletin Board: ARNI), a clinical-stage biopharmaceutical company focused on oncology therapeutics, today announced financial results for the second quarter ended June 30, 2008. Net loss was $3.8 million, or $0.29 per share, for the three months ended June 30, 2008, compared to $0.5 million, or $0.05 per share, for the same period in 2007. Net loss was $7.5 million, or $0.65 per share, for the six months ended June 30, 2008, compared to $0.8 million, or $0.08 per share, for the same period in 2007. Research and development expenses were $2.1 million and $5.3 million for the three and six months ended June 30, 2008, respectively. General and administrative expenses were $0.7 million and $1.2 million for the three and six months ended June 30, 2008. Cash used in operations was $4.9 million for the six months ended June 30, 2008. At June 30, 2008, Arno had cash and cash equivalents of $14.4 million compared to $1.6 million on December 31, 2007. The increase in cash is attributed to the net proceeds of approximately $17.8 million resulting from Arno's June 2008 private placement of common stock. "We are very pleased with the first half of the year results, as we continued to advance our Phase I lead compound AR-67, as well as in-license our two additional compounds AR-12 and AR-42," said Scott Z. Fields, MD, President and Chief Medical Officer of Arno. "With the additional capital from our June 2008 financing, we are excited to further advance the development of our three compounds." Key Achievements for the Six Months Ended June 30, 2008 -- Expanded our product portfolio by in-licensing AR-12, a PDK1 inhibitor, and AR-42, a Pan-DAC inhibitor which also inhibits the Akt pathway -- Appointed Arie S. Belldegrun, MD as Chairman of the Board of Directors -- Appointed Robert I. Falk as member of the Board of Directors -- Completed private placement of common stock, resulting in net proceeds of $17.8 million -- Became a public reporting company as a result of the June 2008 merger with Laurier International, Inc. 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 compound is AR-67, a novel, third-generation camptothecin analogue in Phase I studies in patients with advanced solid tumors that has demonstrated high potency and significantly 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 also undergoing IND-enabling studies. Arno is actively pursuing additional compounds to expand its portfolio. For more information on Arno please visit www.arnothera.com. 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 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 Current Report on Form 8-K filed with the Securities and Exchange Commission on June 9, 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) CONDENSED BALANCE SHEETS June 30, 2008 (unaudited) December 31, 2007 ASSETS Current assets Cash and cash equivalents $14,412,517 $1,646,243 Prepaid expenses 122,999 74,092 Total current assets 14,535,516 1,720,335 Deferred financing fees, net - 13,541 Property and equipment, net 47,086 38,193 Security deposit 12,165 12,165 TOTAL ASSETS $14,594,767 $1,784,234 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) Current liabilities Accounts payable $856,948 $111,474 Accrued expenses 880,232 1,120,179 Due to related party 203,426 583 Convertible notes and accrued interest payable - 4,179,588 TOTAL LIABILITIES 1,940,606 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 at June 30, 2008 and December 31, 2007 - - Common stock, $0.0001 par value: 80,000,000 shares authorized, 20,392,024 shares issued and outstanding at June 30, 2008 and 9,968,797 shares issued and outstanding at December 31, 2007 2,039 997 Additional paid-in capital 23,852,225 102,003 Deficit accumulated during the development stage (11,200,103) (3,730,590) TOTAL STOCKHOLDERS' EQUITY (DEFICIENCY) 12,654,161 (3,627,590) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) $14,594,767 $1,784,234 ARNO THERAPEUTICS, INC. (A DEVELOPMENT STAGE COMPANY) CONDENSED STATEMENTS OF OPERATIONS (Unaudited) For the For the For the For the Three Three Six Six Months Months Months Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2008 2007 2008 2007 OPERATING EXPENSES Research and development $2,101,862 $401,402 $5,289,044 $612,199 General and administrative 741,112 75,512 1,173,377 133,540 Total Operating Expenses 2,842,974 476,914 6,462,421 745,739 LOSS FROM OPERATIONS (2,842,974) (476,914) (6,462,421) (745,739) OTHER INCOME (EXPENSE) Interest income 18,173 36,146 28,961 47,697 Interest expense (946,129) (64,550) (1,036,053) (97,808) Total Other Income (Expense) (927,956) (28,404) (1,007,092) (50,111) NET LOSS $(3,770,930) $(505,318) $(7,469,513) $(795,850) NET LOSS PER SHARE - BASIC AND DILUTED $(0.29) $(0.05) $(0.65) $(0.08) WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED 13,175,944 9,968,797 11,572,370 9,968,797 Cumulative Period from August 1, 2005 (inception) Through June 30, 2008 OPERATING EXPENSES Research and development $8,554,141 General and administrative 1,538,786 Total Operating Expenses 10,092,927 LOSS FROM OPERATIONS (10,092,927) OTHER INCOME (EXPENSE) Interest income 152,923 Interest expense (1,260,099) Total Other Income (Expense) (1,107,176) NET LOSS $(11,200,103) NET LOSS PER SHARE - BASIC AND DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED
SOURCE Arno Therapeutics, Inc.
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