NASDAQ: CRME TSX: COM VANCOUVER, March 28 /PRNewswire-FirstCall/ --
Cardiome Pharma Corp. (NASDAQ:CRME/TSX:NASDAQ:COM) today reported
financial results for the fourth quarter and year ended December
31, 2006. Amounts, unless specified otherwise, are expressed in
Canadian dollars and in accordance with Canadian Generally Accepted
Accounting Principles (Canadian GAAP). At close of business on
December 31, 2006, the exchange rate was CAD$1.00=US$0.8581.
Summary Fiscal 2006 Results We recorded a net loss of $36.1 million
($0.68 per common share) for the year ended December 31, 2006
compared to a net loss of $53.4 million ($1.09 per common share)
for fiscal 2005. The decrease in net loss for fiscal 2006 was
largely due to an increase in licensing fees primarily as a result
of the receipt of US$10 million from Astellas on reaching the
re-submission of the New Drug Application ("NDA") milestone, and
the effects of the write-down of intangible assets associated with
the Oxypurinol CHF project of $23.3 million during fiscal 2005. The
decrease in net loss was partially offset by increased costs
associated with expanded clinical development activities, increased
general and administration costs to support those activities, lower
research collaborative fees from our collaborative partner,
Astellas, and a decrease in future income tax recovery also
associated with the Oxypurinol write-down. The results of
operations were in line with management's expectations. Total
revenue increased to $20.7 million in fiscal 2006 from $16.1
million in fiscal 2005. Revenue in fiscal 2006 consisted of $14.0
million in licensing fees (fiscal 2005 - $4.7 million) and $6.7
million in research collaborative fees (fiscal 2005 - $11.4
million). Research and development expenditures were $43.4 million
for fiscal 2006, comparable to the $41.5 million recorded for
fiscal 2005. General and administration expenses increased by $4.6
million to $13.9 million in fiscal 2006 from $9.3 million in fiscal
2005 due to the addition of personnel and expanded business
development activities. Amortization expense decreased by $1.1
million to $1.6 million in fiscal 2006 from $2.7 million in fiscal
2005, due to the write-down of intangible assets related to the
Oxypurinol development program in fiscal 2005. Stock-based
compensation, a non-cash item included in operating expenses, was
$8.2 million for the year, as compared to $5.8 million for 2005.
Summary Fourth Quarter Results Net loss for the fourth quarter of
2006 was $1.3 million, or $0.02 per share, compared to net loss of
$8.6 million, or $0.17 per share for the same period in 2005. The
decrease in net loss was largely due to an increase in licensing
fees primarily as a result of the receipt of US$10 million from
Astellas on reaching the re-submission of the NDA milestone,
partially offset by increased research and development costs,
increased general and administration costs and lower research
collaborative fees received from our collaborative partner,
Astellas. Research and development costs for the fourth quarter of
2006 were $12.3 million, an increase of $3.4 million from $8.9
million in the same period of 2005. The increase was primarily due
to increased costs associated with our Phase 2 clinical development
program for vernakalant (oral). General and administration expenses
were $3.9 million, an increase of $0.7 million from $3.2 million in
the same period of 2005. The increase was largely due to the
addition of personnel and expanded business development activities.
Other income increased to $2.2 million for the quarter from $0.7
million in the same period of 2005, largely due to foreign exchange
gains resulting from appreciation of the U.S. dollar in the fourth
quarter of 2006. Stock-based compensation, a non-cash item included
in operating expenses, was $2.2 million for the quarter, as
compared to $1.4 million for the same period in 2005. Liquidity and
Outstanding Share Capital As of December 31, 2006, the Company had
cash, cash equivalents and short-term investments of $55.6 million.
As of December 31, 2006, the Company had 53,888,202 common shares
issued and outstanding, 4,913,952 common shares issuable upon the
exercise of outstanding stock options at a weighted-average
exercise price of $7.64 per share, and 55,502 common shares
issuable upon the exercise of outstanding warrants at a
weighted-average exercise price of US$5.10 per share. Subsequent to
year-end, in January 2007 we completed a public offering of 9.2
million common shares at a price of $12.32 (US$10.50) per share for
total gross proceeds of $113.4 million (US$96.6 million).
Conference Call Notification Cardiome will hold a teleconference
and webcast on Wednesday, March 28, 2007 at 10:00am EST (7:00am
PST). Please dial 1-866-250-4907 or 416-644-3427 to access the
call. There will be a separate dial-in line for analysts on which
we will respond to questions at the end of the presentation. The
webcast can also be accessed through Cardiome's website at
http://www.cardiome.com/. Webcast and telephone replays of the
conference call will be available approximately two hours after the
completion of the call through April 29, 2007. Please dial
877-289-8525 or 416-640-1917, and enter code 21224694 followed by
the number sign to access the replay. About Cardiome Pharma Corp.
Cardiome Pharma Corp. is a product-focused cardiovascular drug
development company with two clinical drug programs focused on
atrial arrhythmia (intravenous and oral dosing), and a pre-clinical
program directed at improving cardiovascular function. Vernakalant
(iv) is the intravenous formulation of an investigational drug
being evaluated for the acute conversion of atrial fibrillation
(AF). Positive top-line results from two pivotal Phase 3 trials for
vernakalant (iv), called ACT 1 and ACT 3, were released in December
2004 and September 2005. An additional Phase 3 study evaluating
patients with post-operative atrial arrhythmia, called ACT 2, and
an open-label safety study evaluating recent-onset AF patients,
called ACT 4, are ongoing. Cardiome's co-development partner
Astellas Pharma US, Inc. submitted a New Drug Application for
vernakalant (iv) in December 2006. Vernakalant (oral) is being
investigated as a chronic-use oral drug for the maintenance of
normal heart rhythm following termination of AF. Cardiome announced
positive results from a Phase 2a pilot study for vernakalant (oral)
in September 2006. Cardiome is traded on the Toronto Stock Exchange
(COM) and the NASDAQ National Market (CRME). Forward-Looking
Statement Disclaimer Certain statements in this press release
contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 or forward-looking
information under applicable Canadian securities legislation that
may not be based on historical fact, including without limitation
statements containing the words "believe", "may", "plan", "will",
"estimate", "continue", "anticipate", "intend", "expect" and
similar expressions. Such forward-looking statements or information
involve known and unknown risks, uncertainties and other factors
that may cause our actual results, events or developments, or
industry results, to be materially different from any future
results, events or developments expressed or implied by such
forward-looking statements or information. Such factors include,
among others, our stage of development, lack of product revenues,
additional capital requirements, risk associated with the
completion of clinical trials and obtaining regulatory approval to
market our products, the ability to protect our intellectual
property, dependence on collaborative partners and the prospects
for negotiating additional corporate collaborations or licensing
arrangements and their timing. Specifically, certain risks and
uncertainties that could cause such actual events or results
expressed or implied by such forward-looking statements and
information to differ materially from any future events or results
expressed or implied by such statements and information include,
but are not limited to, the risks and uncertainties that: we may
not be able to successfully develop and obtain regulatory approval
for vernakalant (iv) or vernakalant (oral) in the treatment of
atrial fibrillation or any other current or future products in our
targeted indications; our future operating results are uncertain
and likely to fluctuate; we may not be able to raise additional
capital; we may not be successful in establishing additional
corporate collaborations or licensing arrangements; we may not be
able to establish marketing and sales capabilities and the costs of
launching our products may be greater than anticipated; we rely on
third parties for the continued supply and manufacture of
vernakalant (iv) and vernakalant (oral) and we have no experience
in commercial manufacturing; we may face unknown risks related to
intellectual property matters; we face increased competition from
pharmaceutical and biotechnology companies; and other factors as
described in detail in our filings with the Securities and Exchange
Commission available at http://www.sec.gov/ and the Canadian
securities regulatory authorities at http://www.sedar.com/. Given
these risks and uncertainties, you are cautioned not to place undue
reliance on such forward-looking statements and information, which
are qualified in their entirety by this cautionary statement. All
forward-looking statements and information made herein are based on
our current expectations and we undertake no obligation to revise
or update such forward-looking statements and information to
reflect subsequent events or circumstances, except as required by
law. CONDENSED CONSOLIDATED BALANCE SHEETS
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December 31, December 31, Expressed in thousands of Canadian
dollars. 2006 2005 Prepared in accordance with Canadian GAAP.
(audited) (audited)
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Cash and cash equivalents $ 23,400 $ 9,305 Short-term investments
32,172 64,651 Amounts receivable 3,628 7,122 Prepaid expenses 869
1,549
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Total current assets 60,069 82,627 Property and equipment 4,427
4,357 Intangible assets 3,203 2,815 Deferred financing costs 892 -
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Total assets $ 68,591 $ 89,799
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Current liabilities $ 14,618 $ 13,012 Long-term portion of deferred
leasehold inducement 1,120 1,291 Future income tax liability - 289
Shareholders' equity 52,853 75,207
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Total liabilities and shareholders' equity $ 68,591 $ 89,799
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CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT
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Expressed in thousands of Canadian dollars (except share and For
the Three Months per share amounts). Ended For the Year Ended Dec
31, Dec 31, Dec 31, Dec 31, Prepared in accordance 2006 2005 2006
2005 with Canadian GAAP. (unaudited) (unaudited) (audited)
(audited)
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Revenue Licensing fees $ 12,103 $ 1,047 $ 14,048 $ 4,694 Research
collaborative fees 978 1,994 6,620 11,426
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$ 13,081 $ 3,041 20,668 16,120
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Expenses Research and development 12,324 8,909 43,433 41,470
General and administration 3,932 3,228 13,923 9,259 Amortization
420 330 1,637 2,700 Write-down of intangible assets - - - 23,320
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16,676 12,467 58,993 76,749
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Operating loss (3,595) (9,426) (38,325) (60,629)
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Other income 2,179 650 1,889 33
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Loss before income taxes (1,416) (8,776) (36,436) (60,596) Future
income tax recovery 107 139 289 7,221
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Net loss for the period (1,309) (8,637) (36,147) (53,375) Deficit,
beginning of period (180,271) (136,796) (145,433) (92,058)
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Deficit, end of period $ (181,580) $ (145,433) $ (181,580) $
(145,433)
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Basic and diluted loss per common share(1) $ (0.02) $ (0.17) $
(0.68) $ (1.09)
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Weighted average number of common shares outstanding 53,740,850
52,290,106 52,966,473 49,015,462
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(1) Basic and diluted loss per common share based on the weighted
average number of common shares outstanding during the period.
CONTACT: Peter K. Hofman, Senior Director, Investor Relations,
(604) 676-6993 or Toll Free: 1-800-330-9928, Email: DATASOURCE:
Cardiome Pharma Corp. CONTACT: Peter K. Hofman, Senior Director,
Investor Relations, (604) 676-6993 or Toll Free: 1-800-330-9928,
Email:
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