NovaDel Reports Financial Results for Second Quarter 2011

BRIDGEWATER, N.J.--(BUSINESS WIRE)-- NovaDel Pharma Inc. (OTC BB: NVDL), a specialty pharmaceutical company that develops oral spray formulations of marketed pharmaceutical products, today reported financial results for the quarter ended June 30, 2011. As of June 30, 2011, NovaDel’s cash and cash equivalents were $0.9 million.

Revenue totaled $0.2 million and $0.3 million for the three and six months ended June 30, 2011, respectively, compared to $0.1 million and $0.2 million for the three and six months ended June 30, 2010, respectively. Operating expenses were $1.1 million and $2.4 million for the three and six months ended June 30, 2011, respectively, compared to $1.4 million and $2.8 million for the three and six months ended June 30, 2010, respectively. Total other income (expense) was ($4.1) million and ($5.4) million for the three and six months ended June 30, 2011, respectively, compared to $0.2 million and $0.2 million for the three and six months ended June 30, 2010, respectively. Net loss was $5.0 million, or $0.04 per share, and $7.6 million, or $0.07 per share, for the three and six months ended June 30, 2011, respectively, compared to $1.1 million, or $0.01 per share, and $2.4 million, or $0.03 per share, for the three and six months ended June 30, 2010, respectively.

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. (OTC BB: NVDL), visit our website at www.novadel.com.

FORWARD-LOOKING STATEMENTS:

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 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 Company’s ability to obtain additional required financing to fund its development programs and operations, 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 most recent Annual Report on Form 10-K for the period ended December 31, 2010 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.

Condensed Balance Sheets

   

June 30,
2011

December 31,
2010

(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 865,000 $ 900,000
Receivables 744,000
Prepaid expenses and other current assets   153,000   346,000
Total current assets 1,018,000 1,990,000
 
Property and equipment, net 170,000 221,000
Other assets   7,000   7,000
 
Total assets $ 1,195,000 $ 2,218,000
 
 
Liabilities and stockholders’ deficiency
Current liabilities:
Accounts payable $ 122,000 $ 356,000
Accrued expenses and other current liabilities 150,000 146,000
Derivative liability 3,779,000 611,000
Current portion of deferred revenue   259,000   3,259,000
Total current liabilities 4,310,000 4,372,000
 
Non-current portion of deferred revenue   6,560,000   3,689,000
Total liabilities   10,870,000   8,061,000
 
Commitments and contingencies
 
Stockholders’ deficiency:

Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding at June 30, 2011 and December 31, 2010, respectively

Common stock, $0.001 par value, 750,000,000 shares authorized, 133,590,615 and 98,681,029 shares issued at June 30, 2011 and December 31, 2010, respectively 134,000 99,000
Additional paid-in capital 83,226,000 79,496,000
Accumulated deficit (93,029,000 ) (85,432,000 )
Treasury stock, at cost, 3,012 shares   (6,000 )   (6,000 )
Total stockholders’ deficiency   (9,675,000 )   (5,843,000 )
 
Total liabilities and stockholders’ deficiency $ 1,195,000 $ 2,218,000
 

NovaDel Pharma Inc.

Condensed Statements of Operations

(Unaudited)

 

  Three Months Ended June 30,       Six Months Ended June 30,
2011   2010   2011   2010
Revenue
Royalties $ 127,000 $ $ 127,000 $
Milestone fees 62,000
License fees   65,000   66,000   130,000   133,000
Total revenue   192,000   66,000   257,000   195,000
 
Operating expenses
Research and development 412,000 559,000 1,032,000 1,006,000
General and administrative   703,000   813,000   1,385,000   1,787,000
Total operating expenses   1,115,000   1,372,000   2,417,000   2,793,000
 
Loss from operations (923,000 ) (1,306,000 ) (2,160,000 ) (2,598,000 )
 
Other income (expense):
Change in derivative liability (2,427,000 ) 181,000 3,684,000 181,000
Change in conversion feature liability (794,000 ) 27,000
Interest expense   (875,000 )     (1,000 )   (9,148,000 )   (1,000 )
Total other income (expense)   (4,096,000 )     180,000   (5,437,000 )   180,000
 
Net loss   (5,019,000 )   (1,126,000 )   (7,597,000 )   (2,418,000 )
 
Basic and diluted loss per common share   (0.04 )   (0.01 )   (0.07 )   (0.03 )
 
Weighted average common shares outstanding – basic and diluted   129,080,346   97,918,458   115,961,695   93,194,701



CONTACT:

NovaDel Pharma Inc.
Steven B. Ratoff, 908-203-4640
Chairman, Chief Executive Officer
and Interim Chief Financial Officer
[email protected]

KEYWORDS:   United States  North America  New Jersey

INDUSTRY KEYWORDS:   Health  Biotechnology  Pharmaceutical

MEDIA:

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