2014

Arno Therapeutics Announces Third Quarter 2008 Financial Results

FAIRFIELD, N.J., Nov. 14 /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 three and nine months ended September 30, 2008.

For the quarter ended September 30, 2008, Arno reported a net loss of $2.2 million, or $0.11 per share, compared to $1.3 million, or $0.13 per share, for the same period in 2007. Net loss for the nine months ended September 30, 2008 was $9.7 million, or $0.66 per share, compared to $2.1 million, or $0.21 per share, for the same period in 2007.

Research and development expenses for the third quarter of 2008 were $1.8 million, compared to $1.2 million for the third quarter of 2007. Total research and development expenses for the nine months ended September 30, 2008 were $7.1 million, compared to $1.8 million for the first nine months of 2007. The increase in research and development costs in 2008 resulted primarily from the increased clinical development costs attributed to AR-67 and the in-licensing of AR-12 and AR-42. General and administrative expenses were $0.5 million for the three months ended September 30, 2008, compared to $.09 million for the same period in 2007. Total general and administrative expenses were $1.7 million for the nine months ended September 30, 2008, compared to $0.2 million for the same period in 2007. The increase in general and administrative expenses was attributed to merger related costs during June 2008, in addition to having more employees during the nine months ended 2008 as compared to the same period in 2007. Cash used in operations was $6.1 million for the nine months ended September 30, 2008.

At September 30, 2008, Arno had cash and cash equivalents of $13.2 million compared to $1.6 million on December 31, 2007. The increase in cash is attributed to the net proceeds of approximately $17.7 million resulting from Arno's June 2008 private placement of common stock.

"We are very pleased with our progress over the past nine months, as we have completed patient enrollment of our Phase I trial for AR-67, in addition to the continued progress in the advancement of our two additional compounds AR-12 and AR-42," said Roger Berlin, MD, Chief Executive Officer of Arno. "We look forward to further advancing AR-67 into Phase II clinical studies, as well as advancing AR-12 and AR-42 into clinical development in 2009."

Key Achievements for the Nine Months Ended September 30, 2008

  • Appointed William F. Hamilton, PhD, as a member of the Board of Directors and as chairman of the audit committee
  • Appointed Roger G. Berlin, MD, as Chief Executive Officer
  • Appointed Arie S. Belldegrun, MD, as Chairman of the Board of Directors
  • Appointed Robert I. Falk as a member of the Board of Directors
  • Expanded our product portfolio by in-licensing AR-12 a PDK1 inhibitor of the PI3K/Akt pathway, and AR-42 a Pan-DAC inhibitor which also inhibits the Akt pathway
  • Completed private placement of common stock, resulting in net proceeds of $17.7 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 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 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.

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)

CONDENSED BALANCE SHEETS

                                                September 30,   December 31,
                                                    2008           2007
                                                 (unaudited)

    ASSETS
    Current assets
      Cash and cash equivalents                  $13,225,890     $1,646,243
      Prepaid expenses                               229,271         74,092
        Total current assets                      13,455,161      1,720,335
    Deferred financing fees, net                           -         13,541
    Property and equipment, net                       53,502         38,193
    Security deposit                                  12,165         12,165
    TOTAL ASSETS                                 $13,520,828     $1,784,234

    LIABILITIES AND STOCKHOLDERS'
     EQUITY (DEFICIENCY)
    Current liabilities
      Accounts payable                            $2,242,056       $111,474
      Accrued expenses                               383,002      1,120,179
      Due to related party                           249,537            583
        Total current liabilities                  2,874,595      1,232,236
      Convertible notes and
       accrued interest payable                            -      4,179,588
    TOTAL LIABILITIES                              2,874,595      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 shares issued and
       outstanding at September 30, 2008
       and 9,968,797 shares issued and
       outstanding at December 31, 2007                2,039            997
      Additional paid-in capital                  24,037,325        102,003
      Deficit accumulated during
       the development stage                     (13,393,131)    (3,730,590)
    TOTAL STOCKHOLDERS' EQUITY (DEFICIENCY)       10,646,233     (3,627,590)
    TOTAL LIABILITIES AND
     STOCKHOLDERS' EQUITY (DEFICIENCY)           $13,520,828     $1,784,234

ARNO THERAPEUTICS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

                                           For the Three    For the Three
                                            Months Ended     Months Ended
                                             September        September
                                              30, 2008         30, 2007

    OPERATING EXPENSES
    Research and development                 $1,776,710        $1,187,962
    General and administrative                  520,647            92,586
      Total Operating Expenses                2,297,357         1,280,548

    LOSS FROM OPERATIONS                     (2,297,357)       (1,280,548)

    OTHER INCOME (EXPENSE)
    Interest income                             104,329            50,158
    Interest expense                                  -           (63,119)
      Total Other Income (Expense)              104,329           (12,961)

    NET LOSS                                $(2,193,028)      $(1,293,509)

    NET LOSS PER SHARE - BASIC AND DILUTED       $(0.11)           $(0.13)

    WEIGHTED AVERAGE SHARES OUTSTANDING -
     BASIC AND DILUTED                       20,392,024         9,968,797



                                                                Cumulative
                                                               Period from
                                                              August 1, 2005
                                For the Nine    For the Nine   (inception)
                                Months Ended    Months Ended     Through
                                 September       September      September
                                  30, 2008        30, 2007       30, 2008

    OPERATING EXPENSES
    Research and development     $7,065,754      $1,800,161    $10,330,851
    General and administrative    1,694,024         226,126      2,059,433
      Total Operating Expenses    8,759,778       2,026,287     12,390,284

    LOSS FROM OPERATIONS         (8,759,778)     (2,026,287)   (12,390,284)

    OTHER INCOME (EXPENSE)
    Interest income                 133,290          97,855        257,252
    Interest expense             (1,036,053)       (160,927)    (1,260,099)
      Total Other
       Income (Expense)            (902,763)        (63,072)    (1,002,847)

    NET LOSS                    $(9,662,541)    $(2,089,359)  $(13,393,131)

    NET LOSS PER SHARE -
     BASIC AND DILUTED               $(0.66)         $(0.21)

    WEIGHTED AVERAGE
     SHARES OUTSTANDING -
     BASIC AND DILUTED           14,533,714       9,968,797

SOURCE Arno Therapeutics, Inc.



RELATED LINKS
http://www.arnothera.com

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