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NeoRx of Seattle faces crisis, its auditors warn. Could go broke by May 31

March 9, 2006 /

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Bear Paw Development Corporation is a private non-profit organization created for the purpose of administering programs to help improve regional economic conditions in Hill, Blaine, Liberty, Chouteau and Phillips Counties and the Fort Belknap and Rocky Boy's Indian Reservations.

Seattle’s NeoRx Corp. could go broke by May 31 unless it raises millions of dollars before then, its auditors have warned.

In a filing with the Securities and Exchange Commission on March 1, accounting firm KPMG pointed to several financial measures that it said "raise substantial concern about its (NeoRx’s) ability to continue as a going concern."

KPMG noted that the 23- person company, which specializes in cancer-therapy products, has suffered recurring operating losses and negative cash flows from operations, has negative net working capital of $1.9 million and a deficit of $255.8 million and had only $3.5 million in cash and securities as of Dec. 31.

By DAN RICHMAN
P-I REPORTER

Full Story: http://seattlepi.nwsource.com/business/262236_neorx09.html