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HAYWARD, Calif., May 13, 2010 (BUSINESS WIRE) -- Aradigm Corporation (OTC BB: ARDM.OB) (the "Company") today announced financial results for the first quarter and three months ended March 31, 2010.
Total revenue was $4.0 million for the first quarter of 2010, compared with zero revenue for the first quarter of 2009. Revenue for the first quarter of 2010 reflects the receipt of the milestone payment due from Zogenix, Inc. upon the first U.S. sale of SUMAVEL* DosePro* needle-free delivery system for treatment of acute migraine and cluster headaches.
We anticipate recording recurring royalty revenue beginning with the three months ending September 30, 2010 since the terms of our asset sale agreement with Zogenix provides for royalty payments to be based on cash received by Zogenix on their product sales and there is a sixty day lag following the end of the quarter in royalty reporting. We have been informed by Zogenix that wholesalers distributing the SUMAVEL DosePro product were given net 90 day payments terms for the first quarter sales, resulting in the effective delay of first quarter 2010 royalties until the second quarter 2010 royalty payment due in late August 2010. After the first quarter of 2010, the payment terms for wholesalers reverted to net 30 days.
Total operating expenses for the first quarter of 2010 were $4.1 million, compared with total operating expenses of $5.1 million for the first quarter of 2009. The decrease in operating expenses was primarily due to expense reduction efforts and the elimination of R&D expenses associated with the collaboration with Lung Rx, Inc. The Company's net loss for the first quarter of 2010 was $0.2 million, or $0.00 per share, compared with a net loss of $5.2 million, or $0.07 per share, for the same period in 2009.
As of March 31, 2010, cash, cash equivalents and short-term investments totaled $8.9 million.
Recent Highlights
"We continue to make focused clinical and regulatory progress with our inhaled liposomal ciprofloxacin treatments ARD-3100 and ARD-3150 and are projecting to report the results from the ORBIT-1 and ORBIT-2 Phase 2b studies in non-CF bronchiectasis in the second half of this year," said Igor Gonda, CEO and President of Aradigm.
About Aradigm
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, inhaled bioterrorism infections and smoking cessation.
More information about Aradigm can be found at www.aradigm.com.
Forward-Looking Statements
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, 2009 filed with the SEC on March 24, 2010, and the Company's Quarterly Reports on Form 10-Q.
Aradigm and the Aradigm Logo are registered trademarks of Aradigm Corporation.
* Other names and brands may be claimed as the property of others.
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ARADIGM CORPORATION |
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CONDENSED STATEMENTS OF OPERATIONS |
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(In thousands, except per share data) |
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Three months ended
March 31, |
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| 2010 | 2009 | |||||||
| Revenues | $ | 4,000 | $ | -- | ||||
| Operating expenses: | ||||||||
| Research and development | 2,837 | 3,726 | ||||||
| General and administrative | 1,253 | 1,398 | ||||||
| Restructuring and asset impairment | 13 | 17 | ||||||
| Total operating expenses | 4,103 | 5,141 | ||||||
| Loss from operations | (103 | ) | (5,141 | ) | ||||
| Interest income | 10 | 28 | ||||||
| Interest expense | (109 | ) | (104 | ) | ||||
| Other income (expense), net | (2 | ) | (1 | ) | ||||
| Net loss | $ | (204 | ) | $ | (5,218 | ) | ||
| Basic and diluted net loss per common share | $ | (0.00 | ) | $ | (0.07 | ) | ||
| Shares used in computing basic and diluted net loss per common share | 99,872 | 70,704 | ||||||
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ARADIGM CORPORATION |
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CONDENSED BALANCE SHEETS |
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(In thousands) |
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March 31,
2010 |
December 31,
2009 |
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| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 5,861 | $ | 3,903 | ||||
| Short-term investments | 3,006 | 5,228 | ||||||
| Receivables | 224 | 155 | ||||||
| Prepaid and other current assets | 374 | 328 | ||||||
| Total current assets | 9,465 | 9,614 | ||||||
| Property and equipment, net | 2,001 | 2,166 | ||||||
| Notes receivable | 52 | 52 | ||||||
| Other assets | 131 | 133 | ||||||
| Total assets | $ | 11,649 | $ | 11,965 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 766 | 572 | ||||||
| Accrued clinical and cost of other studies | 160 | 670 | ||||||
| Accrued compensation | 282 | 341 | ||||||
| Facility lease exit obligation | 223 | 263 | ||||||
| Other accrued liabilities | 321 | 357 | ||||||
| Total current liabilities | 1,752 | 2,203 | ||||||
| Deferred rent | 130 | 136 | ||||||
| Facility lease exit obligation, non-current | 806 | 828 | ||||||
| Other non-current liabilities | 75 | 75 | ||||||
| Note payable and accrued interest | 9,004 | 8,896 | ||||||
| Shareholders' equity | (118 | ) | (173 | ) | ||||
| Total liabilities and shareholders' equity | $ | 11,649 | $ | 11,965 | ||||
SOURCE: Aradigm Corporation
Aradigm Corporation
Nancy Pecota, 510-265-9370
Chief Financial Officer
Copyright Business Wire 2010
