NovaDel Reports Unaudited Financial Results for the Twelve Months Ended December 31, 2012
BRIDGEWATER, N.J.--(BUSINESS WIRE)-- NovaDel Pharma Inc. (NVDL.PK) reported unaudited financial results for the twelve months ended December 31, 2012.
As previously reported, the Company has entered into negotiations for the sale of its intellectual property and certain other assets to SUDA LTD, an Australian company listed on the ASX. An agreement has not as yet been reached. In addition, we are seeking a purchaser for our NitroMist® and ZolpiMist™ licenses together with the related NDA's. We are currently appealing the FDA fees levied on these products and they continue to be an impediment to the sale of the licenses.
The Company, at the end of March 2012, deregistered its common stock and exited the Securities and Exchange Commission reporting system.
The Company recorded a loss of $1,200,000 or $(0.01) per share for the twelve months ended December 31, 2012, compared to a net loss of $5,341,000 or $(0.04) per share in the twelve months ended December 31, 2011.
During the twelve months of 2012, the Company earned royalties from the license of NitroMist and ZolpiMist in the amount of $471,000. The Company also received $200,000 from the sale of NitroMist rights outside the US, Canada and Mexico. Also included in revenue is the recognition of previously received payments under various license agreements. In January, 2013, we terminated our ZolpiMist license agreement with Rechon Life Science AB. Rechon breached the initial performance clause of the license and under the terms of the agreement the license was terminated.
Expenses for the twelve months ended December 31, 2012, were $2,572,000 as compared to $4,700,000 and include amounts to maintain and expand our intellectual property base, as well as an expense accrual under a severance agreement with a former officer of the Company. The Company continues to closely manage its expenses as well as actively negotiate with its creditors to reduce its outstanding debts.
As of December 31, 2012, the Company has approximately $30,000 in cash and cash equivalents.
The current liabilities of the Company, at December 31, 2012, of $4,365,000 include fees due to the FDA approximating $2,800,000. The imposition of these fees is an impediment to our ability to raise capital to continue to develop our product opportunities or find a strategic partner. The Company has filed an appeal with the FDA for relief of the fees currently imposed and future fees relating to our licensed and marketed products. There is no assurance that our request will be granted nor are we certain as to the time frame for a response to our request of the FDA.
The remaining liabilities at December 31, 2012, of $5,170,000 reflect deferred revenue to be recognized over the term of various license agreements.
ABOUT NOVADEL PHARMA
NovaDel Pharma Inc. is a specialty pharmaceutical company that develops oral spray formulations of marketed pharmaceutical products. The Company's patented oral spray drug delivery technology seeks to improve the efficacy, safety, patient compliance, and patient convenience for a broad range of prescription pharmaceuticals. NovaDel has two marketed products that have been approved by the FDA: NitroMist® for the treatment of angina, and ZolpiMist™ for the treatment of insomnia. NovaDel's leading product candidate, DuroMist™, is being developed for the treatment of erectile dysfunction. The Company also has product candidates that target nausea, migraine headache and disorders of the central nervous system. NovaDel plans to develop these and other products independently and through collaborative arrangements with pharmaceutical and biotechnology companies. To find out more about NovaDel Pharma Inc. ( NVDL.PK), visit our website at www.novadel.com.
Except for historical information contained herein, this document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein including, but not limited to, the Company's ability to obtain additional required financing or achieve other strategic alternatives (the lack of which would cause the Company to file for bankruptcy), the ability of third parties to successfully commercialize the Company's products, the successful completion of its clinical trials, including pilot pharmacokinetic feasibility studies, the successful completion of its preclinical studies, the ability to develop products (independently and through collaborative arrangements), the ability to commercialize and obtain FDA and other regulatory approvals for products under development, and the acceptance in the marketplace for oral spray products. The Company operates in industries where securities may be volatile and may be influenced by regulatory and other factors beyond the Company's control.
In addition, our inability to maintain or enter into, and the risks resulting from our dependence upon, collaboration or contractual arrangements necessary for the development, manufacture, commercialization, marketing, sales and distribution of any of our products could materially impact the Company's actual results. Important factors that the Company believes might cause such differences are discussed in the risk factors detailed in the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2011 filed with the Securities and Exchange Commission. In assessing forward-looking statements contained herein, if any, the reader is urged to carefully read all cautionary statements contained in such filings. We do not intend to update any of these factors or to publicly announce the results of any revisions to these forward-looking statements.
NOVADEL PHARMA INC.
SUMMARY STATEMENT OF OPERATIONS
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NOVADEL PHARMA INC.
SUMMARY BALANCE SHEET
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NovaDel Pharma Inc.
Steven Ratoff, 520-245-6905
KEYWORDS: United States North America New Jersey
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