>>Cardiome Reports 2006 Results
Wednesday March 28, 9:20 am ET
NASDAQ: CRME TSX: COM
VANCOUVER, March 28 /PRNewswire-FirstCall/ - Cardiome Pharma Corp. (NASDAQ: CRME/TSX: 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 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.<<
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I haven't listened to the CC yet, but I can't imagine there's much that's earth-shattering unless there is a delay not disclosed in the PR. I bought back in again just now (sold puts).
I have a good record with CRME trades. Of course, I used to say that about AMGN, too.
Cheers, Tuck |
