NEW HAVEN, Conn., Aug. 4 VION PHARMACEUTICALS,INC. (Nasdaq: VION) today announced financial results for the three-month andsix-month periods ended June 30, 2008.
The Company reported a net loss of $7.9 million, or $1.06 per share, forthe three-month period ended June 30, 2008, compared to a net loss of $8.8million, or $1.33 per share, for the same period in 2007. Weighted-averagecommon shares outstanding for the three months ended June 30, 2008 and 2007were 7.4 million and 6.6 million, respectively.
Operating expenses were reduced by $1.9 million from $8.6 million in the2007 second quarter to $6.7 million in the comparable quarter in 2008.Interest income for the three months ended June 30, 2008 and 2007 was $265,000and $998,000, respectively.
For the six-month period ended June 30, 2008, the net loss was $16.1million, or $2.20 per share, compared to a net loss of $16.8 million, or $2.53per share, for the same period in 2007. Weighted-average common sharesoutstanding for the six months ended June 30, 2008 and 2007 were 7.3 millionand 6.6 million, respectively.
Operating expenses were reduced by $2.6 million, from $16.5 million forthe six-month period in 2007, to $13.9 million in the comparable period in2008. Interest expense increased by $789,000 over the prior year related tothe Company's Convertible Senior Notes issued in February 2007. Interestincome for the first half of 2008 decreased by $898,000 over the comparable2007 period.
The Company reported ending the quarter with $49.9 million in cash andcash equivalents, sufficient to fund its operations through the fourth quarterof 2009 based on the current operating plan.
Alan Kessman, Chief Executive Officer, commented, "We continue to makeprogress on a New Drug Application for Cloretazine(R) (VNP40101M) based on ourtwo Phase II trials in elderly patients with acute myelogenous leukemia (AML).We intend to file this NDA in the first half of 2009."
In the quarter the Company exercised its right to appeal a delistingdetermination to a Nasdaq Listings Qualification Panel and presented a planfor compliance with listing requirements. The Company was notified that theplan was accepted and that it had until August 15, 2008 to implement the plan.The Company has contacted Nasdaq to indicate that it is unlikely that its planwill be implemented by August 15, 2008. Therefore, the Company expects thatin the near future it will no longer be listed on the Nasdaq Capital Marketand that its common stock will be quoted on the OTC Bulletin Board.
On February 20, 2008, the Company implemented a one-for-ten reverse splitof all outstanding shares of its common stock and a corresponding decrease inthe number of shares of authorized common stock. Share and per share amountscontained herein are provided on a post-split basis.
Second Quarter Conference Call
The Company announced that it would hold a conference call on Thursday,August 7, 2008 to discuss its 2008 second quarter financial results. The callwill begin at 8:30 a.m. Eastern Time.
To participate in the conference call, please dial (800) 591-6930 in theU.S. ((617) 614-4908 for international callers) at least 15 minutes before thestart of the call. When prompted for a pass code, please enter 25790591.
An audio webcast of the call will be accessible at www.vionpharm.com.Those who wish to listen to the conference call on the Web should visit theInvestor Relations section of the Company's website at least 15 minutes priorto the event broadcast, and follow the instructions provided to assure thatthe necessary audio applications are downloaded and installed. These programscan be obtained at no charge to the user.
A replay of the call will be available two hours after the completion ofthe call at (888) 286-8010 in the U.S., ((617) 801-6888 for internationalcallers), pass code