Hana Biosciences announces financial results of third quarter 2010

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

"During the third quarter of 2010, our focus was on preparation of the 5 modules that make up the NDA submission for Marqibo®" stated Steven R. Deitcher, M.D., President and Chief Executive Officer of Hana Biosciences. "An analysis of data from the Menadione Topical Lotion Phase 1 program showed that it was generally safe and well tolerated. In addition, the dose limiting toxicity and apparent maximum tolerated lotion strength were identified. Our strategy is to seek a partner to enhance and accelerate the continued development of Menadione Topical Lotion."

Recent Clinical and Corporate Highlights:

• Intensive data collection and verification efforts in the third quarter led to completion of the database lock for the primary Phase 2 Marqibo clinical trial in October 2010.
• Completed data analysis of Menadione Topical Lotion Phase 1 study.
• Dr. Robert Spiegel, former Chief Medical Officer of Schering Plough, joined the Hana Board of Directors.
• Obtained stockholder approval of certain amendments to the Company's certificate of incorporation, which led to an adjustment to the Company's recent Convertible Preferred financing transaction to more Company-favorable terms.
• Amended its License Agreement with Tekmira Pharmaceuticals Corporation resulting in an aggregate reduction of $18 million in Hana's potential milestone obligations in exchange for a one-time payment to Tekmira of $5.75 million.  

Three Months Ended September 30, 2010 Financial Results

For the three months ended September 30, 2010, the Company reported a net loss of $7.9 million and deemed dividends on preferred stock of $22.1 million, which when combined, resulted in a net loss applicable to common stockholders of $30.0 million, or $1.41 per share. The deemed dividends on preferred stock had an impact of $1.04 per share for the three months ended September 30, 2010. This compares with a net loss of $5.7 million, or a loss per share of $0.70, for the three months ended September 30, 2009. There were no deemed dividends on preferred stock for the three months ended September 30, 2009.

Total operating expenses for the three months ended September 30, 2010, were $10.3 million, including the one-time payment to Tekmira of $5.75 million, compared with $4.4 million for the three months ended September 30, 2009. Research and development expenses were $9.0 million for the three months ended September 30, 2010, compared with $3.5 million for the three months ended September 30, 2009. General and administrative expenses were $1.3 million for the three months ended September 30, 2010, compared with $0.9 million for the three months ended September 30, 2009.

As of September 30, 2010, the Company had cash, cash equivalents and available-for-sale securities of $27.7 million. Cash used in operations was $10.2 million for the three months ended September 30, 2010 compared with $5.2 million for the three months ended September 30, 2009.

Nine Months Ended September 30, 2010 Financial Results

For the nine months ended September 30, 2010, the Company reported a net loss of $19.7 million and deemed dividends on preferred stock of $31.4 million, which when combined, resulted in a net loss applicable to common stockholders of $51.1 million, or $2.48 per share. The deemed dividends on preferred stock had an impact of $1.52 per share for the nine months ended September 30, 2010. This compares with a net loss of $19.1 million, or a loss per share of $2.36, for the nine months ended September 30, 2009. There were no deemed dividends on preferred stock for the nine months ended September 30, 2009.

Total operating expenses for the nine months ended September 30, 2010, were $19.3 million, including the $5.75 million one-time payment to Tekmira, compared with $14.2 million for the nine months ended September 30, 2009. Research and development expenses were $15.0 million for the nine months ended September 30, 2010, compared with $10.7 million for the nine months ended September 30, 2009. General and administrative expenses were $4.3 million for the nine months ended September 30, 2010, compared with $3.5 million for the nine months ended September 30, 2009.

Cash used in operations was $20.6 million for the nine months ended September 30, 2010 compared with $16.0 million for the nine months ended September 30, 2009.

The per share results for all periods have been adjusted to reflect the impact of the Company's 1-for-4 reverse stock split that occurred at the close of business on September 10, 2010.

SOURCE Hana Biosciences, Inc.