Celsion reports net loss of $2.6M for second-quarter 2010

Celsion Corporation (Nasdaq: CLSN), a biotechnology drug development company, today announced financial results for the second quarter and six months ended June 30, 2010 and addressed the progression of the clinical trials of ThermoDox®, Celsion's heat activated liposomal encapsulation of doxorubicin.  ThermoDox® is currently being evaluated in the Phase III HEAT trial for the treatment of hepatocellular carcinoma (HCC) and in a Phase I/II trial for patients with recurrent chest wall breast cancer.  

"We continue to make substantial progress recruiting patients into our Phase III HEAT trial for ThermoDox®.  We continue to track well against our goal to complete enrollment by the end of this year," said Michael Tardugno, President and CEO of Celsion.  "We have exceeded our goal of opening enrollment at 70 clinical trial sites with 74 enrolling world-wide.  The Phase I/II DIGNITY trial of ThermoDox® in patients with recurrent chest wall breast cancer (RCW) also continues to advance.  We are currently enrolling patients in the 50mg/m² dosing cohort, which will be used to determine our therapeutic dose."

Financial Results

For the second quarter ended June 30, 2010, Celsion reported a net loss of $2.6 million, compared to a net loss of $4.6 million for the same period of 2009.  For the first half of 2010, net cash used in operations was $6.8 million.  Celsion reported a net loss of $8.8 million for the first half of 2010, compared to a net loss of $8.2 million for the same period of 2009.  In the second quarter of 2010, Celsion recorded a $1.8 million non-cash benefit related to the change in the common stock warrant liability.  In the same period of 2009, the Company recorded a non-cash indemnity reserve benefit of $0.5 million.  In the first half of 2010, Celsion recorded a $0.3 million non-cash benefit related to the change in the common stock warrant liability.  In the same period of 2009, the Company recorded a non-cash indemnity reserve benefit of $1.5 million.

The Company ended the quarter with a total of $5.7 million of cash and investments.  On June 17, 2010, the Company secured a committed equity financing facility under which it may sell up to $15 million of common stock to Small Cap Biotech Value Ltd. over a 24 month period.

Recent Company Highlights

• Celsion appointed Jeffrey W. Church as Chief Financial Officer.
• Patient enrollment for the Phase III Heat trial to date is over 67% complete.  Efforts to stimulate patient enrollment continue with full enrollment expected by the end of this year remain a priority for the Company.  
• ThermoDox® Abstract presented at the American Society of Clinical Oncology 2010 Annual Meeting.
• Celsion announced ThermoDox® Abstract accepted at the American Society for Radiation Oncology 2010 Annual Meeting.
• Celsion entered into a $15 Million Committed Equity Financing Facility with Small Cap Biotech Value, Ltd on terms favorable to traditional financing.

SOURCE Celsion Corporation