Maxim Pharmaceuticals, Inc. (Nasdaq:MAXM)(SSE:MAXM) today announced results for the quarter ended March 31, 2005, the second quarter of its fiscal year. The net loss applicable to common stock for the quarter totaled $6.6 million or $0.23 per share, compared to a net loss applicable to common stock of $8.9 million or $0.32 per share, for the prior-year quarter.

The net loss applicable to common stock for the six months ended March 31, 2005 totaled $16.2 million or $0.57 per share, compared to a net loss applicable to common stock of $18.8 million or $0.67 per share for the same period in the prior year. The decrease in the net loss for the period resulted primarily from a decrease in Research and Development expense resulting from the wind-down of the Company's Ceplene(TM) clinical trials and a reduction in expenses resulting from the October 2004 and February 2005 work force reductions.

The Company had cash, cash equivalents and investments totaling $32.6 million at March 31, 2005. Maxim used net cash of $7.3 million in its operations during the quarter ended March 31, 2005.

"During the quarter we further realigned our resources with our corporate objectives," said John D. Prunty, Maxim's Chief Financial Officer. "Our apoptosis modulator platform continues to progress and we were pleased to recently announce the achievement of a $1.0 million development milestone under an agreement with Myriad Genetics based on the dosing of the first patient in a Phase 1 clinical program. We also continue to work with Piper Jaffray & Co. To identify and evaluate our strategic options."

Maxim Overview

Maxim Pharmaceuticals is a biopharmaceutical company dedicated to developing innovative cancer therapeutics. Maxim's lead drug candidate is Ceplene(TM) (histamine dihydrochloride), which has shown a statistically significant improvement in leukemia free survival in a Phase 3 clinical trial as a remission maintenance therapy for patients with acute myeloid leukemia (AML). Maxim is currently seeking a strategic partnership to complete commercialization and further development of Ceplene in AML and other indications. Maxim is also discovering and developing small-molecule apoptosis inducers to treat cancer using its proprietary high-throughput screening technology and its chemical genetics approach. This program has identified four lead oncology candidates that are proceeding to clinical trials independently and through collaborations.

Apoptosis compounds and Ceplene are investigational drugs and have not been approved by the U.S. Food and Drug Administration or any international regulatory agency.