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Aradigm Announces Second Quarter 2009 Financial Results
HAYWARD, Calif., Aug 06, 2009 (BUSINESS WIRE) -- Aradigm Corporation (OTCBB: ARDM) (the "Company")today announced financial results for the second quarter and six months ended June 30, 2009.
No revenue was recorded for the second quarter of 2009, compared with revenue of $54,000 for the second quarter of 2008. Research and development reimbursements received in connection with the collaboration with Lung Rx, Inc. ("Lung Rx") for the development of inhaled treprostinil in the AERx(R) delivery system were recorded as deferred revenue as they cannot be recognized under current revenue recognition rules.
Total operating expenses for the second quarter of 2009 were $4.5 million, compared with total operating expenses of $7.2 million for the second quarter of 2008. The decrease in operating expenses was due to cost control efforts and the timing of research and development expenses associated with the Company's lead product candidate, inhaled liposomal ciprofloxacin. Operating expenses were also impacted by a significant reduction in development expenses associated with the collaboration with Lung Rx. The Company implemented cost reduction actions in response to Lung Rx's notice that they were seeking to terminate the collaboration agreement. The Company's net loss for the second quarter of 2009 was $4.6 million, or $0.05 per share, compared with a net loss of $7.1 million, or $0.13 per share, for the same period in 2008.
As of June 30, 2009, cash, cash equivalents and short-term investments totaled $15.8 million.
The Company announced that:
"We are very pleased that, based on the preclinical data and the successful Phase 2a studies both in cystic fibrosis and bronchiectasis, we can now move into our advanced clinical program with once-a-day inhaled liposomal ciprofloxacin under a U.S. IND to treat a debilitating respiratory condition affecting an underserved patient population. The Company's resources are very much focused on execution in the clinical program for this product," said Igor Gonda, the Company's CEO and President.
Aradigm is an emerging specialty pharmaceutical company focused on the development and commercialization 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, COPD, inhalation anthrax infections and smoking cessation.
Aradigm, AERx, and the Aradigm Logo are registered trademarks of Aradigm Corporation.
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 advancement of product development, commercialization efforts, status of collaboration arrangements and the ability to successfully manage and preserve cash, as well as the other risks detailed from time to time in Aradigm Corporation's Securities and Exchange Commission (SEC) Filings, including the Company's Annual Report on Form 10-K, and quarterly reports on Form 10-Q.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three months ended
Six months ended
|Research and development||2,927||5,364||6,653||9,693|
|General and administrative||1,368||1,825||2,766||3,374|
|Restructuring and asset impairment||205||20||223||42|
|Total operating expenses||4,500||7,209||9,642||13,109|
|Loss from operations||(4,500||)||(7,155||)||(9,642||)||(13,055||)|
|Other income (expense), net||(3||)||1||(4||)||-|
|Basic and diluted net loss per common share||$||(0.05||)||$||(0.13||)||$||(0.12||)||$||(0.23||)|
|Shares used in computing basic and diluted net loss per common share||99,298||54,519||85,080||54,083|
CONDENSED BALANCE SHEETS
|Cash and cash equivalents||$||7,101||$||16,741|
|Prepaid and other current assets||630||387|
|Total current assets||16,851||20,145|
|Property and equipment, net||4,465||5,093|
|Notes receivable from officers and employees||50||34|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Accrued clinical and cost of other studies||173||94|
|Facility lease exit obligation||254||318|
|Other accrued liabilities||402||630|
|Total current liabilities||8,314||2,832|
|Facility lease exit obligation||967||1,056|
|Deferred revenue, non-current||---||4,122|
|Other non-current liabilities||75||82|
|Note payable and accrued interest||8,679||8,472|
|Total liabilities and shareholders' equity||$||21,470||$||25,519|
* The balance sheet at December 31, 2008 has been derived from the audited financial statements at that date.
SOURCE: Aradigm Corporation
Nancy Pecota, 510-265-9000
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