Hana Biosciences second-quarter net loss decreases to $6.3 million

Hana Biosciences Inc. (OTCBB:HNAB), a biopharmaceutical company focused on strengthening the foundation of cancer care, today reported financial results for the three and six months ended June 30, 2010, and provided a corporate update.

"The second quarter of 2010 was transformational for Hana," stated Steven R. Deitcher, M.D., President and Chief Executive Officer of Hana Biosciences. "The Company had a number of important and encouraging events occur but the most significant was the completion of a substantial financing. This financing provides the resources necessary to aggressively pursue the completion of our NDA submission and approval process for Marqibo®, our lead product candidate. We are focused, energized and optimistic about Hana's future."

Recent Clinical and Corporate Highlights:

-- Completed a financing for up to $100 million with $40 million funded on June 7, 2010.

-- Completed clinical/non-clinical and manufacturing pre-NDA meetings with the FDA for Marqibo.

-- Presented complete RALLY clinical trial data of Marqibo in advanced, relapsed/refractory, adult acute lymphoblastic leukemia at the 2010 American Society of Clinical Oncology Annual Meeting.

-- A U.S. patent was issued for menadione topical lotion in treating skin rash in patients taking biologic and small molecule epidermal growth factor inhibitors, such as Erbitux ® and Tarceva ®, for anti-cancer therapy.

Three Months Ended June 30, 2010 Financial Results

For the three months ended June 30, 2010, the Company reported a net loss of $6.3 million and deemed dividends on preferred stock of $9.3 million, which when combined, resulted in a net loss applicable to common stockholders of $15.6 million, or $0.19 per share. The deemed dividends on preferred stock had an impact of $0.11 per share for the three months ended June 30, 2010. This compares with a net loss of $7.9 million, or a loss per share of $0.24, for the three months ended June 30, 2009. There were no deemed dividends on preferred stock for the three months ended June 30, 2009.   

Total operating expenses for the three months ended June 30, 2010, were $4.6 million, compared with $4.2 million for the three months ended June 30, 2009. Research and development expenses were $2.7 million for the three months ended June 30, 2010, compared with $3.0 million for the three months ended June 30, 2009. General and administrative expenses were $1.9 million for the three months ended June 30, 2010, compared with $1.2 million for the three months ended June 30, 2009.

As of June 30, 2010, the Company had cash, cash equivalents and available-for-sale securities of $37.9 million. Cash used in operations was $4.9 million for the three months ended June 30, 2010 compared with $5.3 million for the three months ended June 30, 2009.

Six Months Ended June 30, 2010 Financial Results

For the six months ended June 30, 2010, the Company reported a net loss of $11.8 million and deemed dividends on preferred stock of $9.3 million, which when combined, resulted in a net loss applicable to common stockholders of $21.1 million, or $0.26 per share.   The deemed dividends on preferred stock had an impact of $0.12 per share for the six months ended June 30, 2010. This compares with a net loss of $13.5 million, or a loss per share of $0.42, for the six months ended June 30, 2009. There were no deemed dividends on preferred stock for the six months ended June 30, 2009.

Total operating expenses for the six months ended June 30, 2010, were $9.0 million compared with $9.8 million for the six months ended June 30, 2009. Research and development expenses were $6.0 million for the six months ended June 30, 2010, compared with $7.2 million for the six months ended June 30, 2009.  General and administrative expenses were $3.0 million for the six months ended June 30, 2010, compared with $2.6 million for the six months ended June 30, 2009.

Cash used in operations was $10.4 million for the six months ended June 30, 2010 compared with $10.8 million for the six months ended June 30, 2009.