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Aradigm Announces Fourth Quarter 2009 and Full Year Financial Results
HAYWARD, Calif., Mar 23, 2010 (BUSINESS WIRE) -- Aradigm Corporation (OTC BB: ARDM.OB) (the "Company") today announced financial results for the fourth quarter and full year ended December 31, 2009.
The Company recorded no revenue in the fourth quarter of 2009 or the fourth quarter of 2008. Total operating expenses for the fourth quarter of 2009 were $3.3 million, compared with total operating expenses of $5.3 million for the fourth quarter of 2008. The decrease in operating expenses was due to expense reduction efforts. The Company's net loss for the fourth quarter of 2009 was $3.4 million, or $0.03 per share, compared with a net loss of $5.3 million, or $0.10 per share, for the same period in 2008.
Full Year Results
Revenues for the year ended December 31, 2009 were $4.9 million, compared with revenues of $251,000 in 2008. The increase in revenue was due to the fact that revenue from milestone and development payments received during the collaboration with United Therapeutics Corporation and previously recorded as deferred revenue were recognized as revenue upon the termination of the collaboration. Total operating expenses for 2009 were $18.3 million, compared with total operating expenses of $23.3 million in 2008. Research and development expenses decreased by $5.1 million, general and administrative expenses decreased by $1.6 million, and restructuring and asset impairment expenses increased by $1.8 million. The decrease in research and development expenses and in general and administrative expenses was consistent with the Company's ongoing expense reduction efforts, including reductions in headcount and other operating expenses. Total direct cost of the clinical trials associated with the Company's lead product candidates, ARD-3100 and ARD-3150 (inhaled liposomal ciprofloxacin), remained relatively constant between 2008 and 2009. The increase in restructuring and asset impairment expenses is the result of the impairment of AERx(R) technology fixed assets, following the termination of the collaboration with United Therapeutics Corporation. The net loss for the year ended December 31, 2009 was $13.8 million, or $0.15 per share, compared with a net loss of $22.6 million, or $0.42 per share, in 2008.
As of December 31, 2009, cash, cash equivalents and short-term investments totaled $9.1 million, and did not include the $4.0 million Zogenix, Inc. ("Zogenix") milestone payment received in February 2010.
"In the last year, we advanced our lead product candidate, inhaled liposomal ciprofloxacin for the treatment of infections associated with severe respiratory disease, that culminated in the two concurrent Phase 2b ORBIT-1 and ORBIT-2 clinical trials in bronchiectasis patients," said Igor Gonda, Ph.D., the Company's President and CEO. "In February 2010, we received the milestone payment from Zogenix upon the commercial launch of SUMAVEL DosePro and we will begin receiving quarterly royalty payments from the sale of this product. These payments, together with our cash on hand, will enable us to continue to advance our lead product candidate with completion of the Phase 2b trials in bronchiectasis expected later this year."
Aradigm is an emerging specialty pharmaceutical company focused on the development and commercialization of a portfolio of drugs delivered by inhalation for the treatment of severe respiratory diseases by pulmonologists. The Company has product candidates addressing the treatment of cystic fibrosis, bronchiectasis, inhalation anthrax infections and smoking cessation.
More information about Aradigm can be found at www.aradigm.com.
Except for the historical information contained herein, this news release contains forward-looking statements that involve risk and uncertainties, including the timing and results of clinical trials and the payment of royalties, as well as the other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K for the year ended December 31, 2008 filed with the SEC on March 30, 2009, and the Company's Quarterly Reports on Form 10-Q.
Aradigm, AERx and the Aradigm Logo are registered trademarks of Aradigm Corporation.
Other names and brands may be claimed as the property of others.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three months ended
|Revenues||$ -||$ -||$ 4,883||$ 251|
|Research and development||2,327||3,607||11,406||16,499|
|General and administrative||941||1,690||5,030||6,679|
|Restructuring and asset impairment||14||18||1,874||79|
|Total operating expenses||3,282||5,315||18,310||23,257|
|Loss from operations||(3,282||)||(5,315||)||(13,427||)||(23,006||)|
|Other income (expense), net||(1||)||1||(4||)||-|
|Income tax benefit||15||25||15||25|
|Net loss||$ (3,364||)||$ (5,322||)||$ (13,772||)||$ (22,608||)|
|Basic and diluted net loss per common share||$ (0.03||)||$ (0.10||)||$ (0.15||)||$ (0.42||)|
|Shares used in computing basic and diluted net loss per common share||99,648||54,317||92,348||54,162|
CONDENSED BALANCE SHEETS
|Cash and cash equivalents||$ 3,903||$ 16,741|
|Prepaid and other current assets||328||387|
|Total current assets||9,614||20,145|
|Property and equipment, net||2,166||5,093|
|Total assets||$ 11,965||$ 25,519|
|LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)|
|Accrued clinical and cost of other studies||670||94|
|Facility lease exit obligation||263||318|
|Other accrued liabilities||357||630|
|Total current liabilities||2,203||2,832|
|Deferred rent, non-current||136||199|
|Facility lease exit obligation, non-current||828||1,056|
|Deferred revenue, non-current||-||4,122|
|Other non-current liabilities||75||82|
|Note payable and accrued interest||8,896||8,472|
|Shareholders' equity (deficit)||(173||)||8,756|
|Total liabilities and shareholders' equity (deficit)||$ 11,965||$ 25,519|
SOURCE: Aradigm Corporation
Nancy Pecota, 510-265-9370
Chief Financial Officer
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