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 …read more
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