NASDAQ: CRME TSX: COM VANCOUVER, May 11 /PRNewswire-FirstCall/ -- Cardiome Pharma Corp. (NASDAQ: CRMENASDAQ:/NASDAQ:TSX:NASDAQ:COM) today reported financial results for the first quarter ended March 31, 2007. 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 March 31, 2007, the exchange rate was CAD$1.00=US$0.8661. Corporate Development The following significant events have occurred since our last annual report: - In March 2007, we announced the retirement of Cardiome's Chairman Dr. Mark C. Rogers from the company's Board of Directors. We subsequently announced the appointment of Chief Executive Officer and Board member Bob Rieder to the position of Chairman. It is the intention of the Board of Directors to appoint a Lead Independent Director in due course. - In April 2007, we announced an exclusive in-licensing agreement with Eli Lilly and Company for GED-aPC, a clinical-stage drug candidate, whereby Cardiome has been granted exclusive worldwide rights to GED- aPC for all indications. Cardiome intends to initially develop GED- aPC in cardiogenic shock, a life-threatening form of acute circulatory failure due to cardiac dysfunction, which is a leading cause of death for patients hospitalized following a heart attack. Cardiome intends to meet with the FDA regarding plans to initiate the GED-aPC clinical program in the second half of 2007. Results of Operations Net loss for the first quarter of 2007 (Q1-2007) was $14.0 million, or $0.23 per share, compared to a net loss of $8.1 million, or $0.15 per share for the same period in 2006 (Q1-2006). The increase in net loss for the current quarter was largely due to lower licensing and research collaborative fees, higher costs associated with expanded clinical development activities, and increased general and administration costs to support those activities. This was offset by an increase in other income as a result of a higher average investment balance. Total revenue decreased to $1.7 million in Q1-2007 from $3.1 million in Q1-2006. The decrease in revenue was attributable to decreased licensing fees and research collaborative fees from our partner Astellas as clinical programs related to vernakalant (iv) near completion. Research and development costs for Q1-2007 were $11.8 million, compared to $9.0 million for Q1-2006. The increase of $2.8 million in research and development expenditures was primarily due to the expanded clinical development activities related to the Phase 2 clinical program for vernakalant (oral), partially offset by a decrease in costs incurred for our vernakalant (iv) program. General and administration expenses were $4.6 million, an increase of $1.7 million from $2.9 million in Q1-2006. The increase was primarily due to increased wages and benefits, consulting and professional fees including increased costs of corporate governance, and expanded business development and operational activities. Stock-based compensation, a non-cash item included in operating expenses, was $1.5 million for the quarter, as compared to $1.8 million for the same period in 2006. Liquidity and Outstanding Share Capital As of March 31, 2007, the Company had cash, cash equivalents and short-term investments of $144.2 million. As of May 9, 2007, the Company had 63,366,617 common shares issued and outstanding and 4,945,051 common shares issuable upon the exercise of outstanding stock options at a weighted-average exercise price of $8.03 per share. Conference Call Notification Cardiome will hold a conference call and webcast on Friday, May 11, 2007 at 10:00am EDT (7:00am PDT). Please dial 866-540-8136 or 416-340-8010 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 be accessed through Cardiome's website at http://www.cardiome.com/. About Cardiome Pharma Corp. Cardiome Pharma Corp. is a product-focused cardiovascular drug development company with two late-stage clinical drug programs focused on atrial arrhythmia (intravenous and oral dosing), a Phase 1 program for GED-aPC, an engineered analog of recombinant human activated Protein C, 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. A Phase 2b study for vernakalant (oral) is ongoing. In April 2007 Cardiome acquired exclusive worldwide rights for GED-aPC for all indications. Cardiome intends to initially develop GED-aPC in cardiogenic shock, a life-threatening form of acute circulatory failure due to cardiac dysfunction, which is a leading cause of death for patients hospitalized following a heart attack. 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 ------------------------------------------------------------------------- Expressed in thousands of March 31, December 31, Canadian dollars. Prepared in 2007 2006 accordance with Canadian GAAP. (unaudited) (audited) ------------------------------------------------------------------------- Cash and cash equivalents $26,962 $23,400 Short-term investments 117,254 32,172 Amounts receivable 3,071 3,628 Prepaid expenses 1,301 869 ------------------------------------------------------------------------- Total current assets 148,588 60,069 Property and equipment 5,006 4,427 Intangible assets 3,101 3,203 Deferred financing costs - 892 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Total assets $156,695 $68,591 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Current liabilities $11,058 $14,618 Long-term portion of deferred leasehold inducement 1,077 1,120 Shareholders' equity 144,560 52,853 ------------------------------------------------------------------------- Total liabilities and shareholders' equity $156,695 $68,591 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ------------------------------------------------------------------------- Expressed in thousands of For the Three Months Ended Canadian dollars (except share March 31, March 31, and per share amounts). Prepared 2007 2006 in accordance with Canadian GAAP. (unaudited) (unaudited) ------------------------------------------------------------------------- Revenue Licensing fees $449 $1,048 Research collaborative fees 1,261 2,004 ------------------------------------------------------------------------- 1,710 3,052 ------------------------------------------------------------------------- Expenses Research and development 11,830 9,049 General and administration 4,616 2,860 Amortization 471 364 ------------------------------------------------------------------------- 16,917 11,273 ------------------------------------------------------------------------- Operating loss (15,207) (9,221) ------------------------------------------------------------------------- Other income 1,171 1,022 ------------------------------------------------------------------------- Loss before income taxes (14,036) (8,199) Future income tax recovery - 82 ------------------------------------------------------------------------- Net loss for the period (14,0366) (8,117) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and diluted loss per common share(1) $(0.23) $(0.15) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of outstanding common shares 60,779,476 52,568,323 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Basic and diluted loss per common share based on the weighted average no. 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:

Copyright