Ardea Biosciences, Inc. (NASDAQ: RDEA), a biotechnology company
focused on the development of small-molecule therapeutics for the
treatment of serious diseases, today announced first quarter 2012
financial results.
On April 22, 2012, AstraZeneca and Ardea Biosciences announced
that they had entered into a definitive merger agreement pursuant
to which AstraZeneca will acquire Ardea for $32 per share in cash
for a total transaction value of approximately $1.26 billion.
First Quarter 2012 Financial Results
As of March 31, 2012, we had $212.9 million in cash, cash
equivalents and short-term investments and $2.0 million in
receivables, compared to $96.0 million in cash, cash equivalents
and short-term investments and $1.4 million in receivables as of
December 31, 2011.
The net increase in cash, cash equivalents, short-term
investments and receivables in 2012 was due primarily to our
February 2012 public offering of common stock, which resulted in
net proceeds to us of $157.3 million. This increase was partially
offset by the use of cash to fund our clinical-stage programs,
personnel costs and for other general corporate purposes during the
first quarter of 2012.
Revenues totaled $1.5 million and $1.8 million for the three
months ended March 31, 2012 and 2011, respectively. The decrease in
revenues in 2012 as compared to 2011 was primarily due to a
decrease in reimbursable research and development costs related to
BAY86-9766 (RDEA119), which are reimbursed under the terms of our
global license agreement with Bayer HealthCare.
For the three months ended March 31, 2012, total operating
expenses increased to $42.5 million from $17.0 million for the same
period in 2011. Total operating expenses for the three months ended
March 31, 2012 included non-cash, stock-based compensation charges
of $3.1 million, or $0.09 per share, compared to $2.4 million, or
$0.09 per share, for the same period in 2011. The increase in total
operating expenses for the three months ended March 31, 2012,
compared to the same period in 2011, was primarily a result of an
increase in development expenses due to the progression of
lesinurad in Phase 3 clinical studies and costs associated with a
Phase 1 study for our next-generation product candidate for the
chronic treatment of gout, RDEA3170, as well as an increase in
consulting and professional outside services and personnel and
related costs to support these increased development
activities.
Net loss for the three months ended March 31, 2012 was $40.9
million, or $1.25 per share, compared to a net loss for the same
period in 2011 of $15.2 million, or $0.59 per share. The increase
in net loss for the three months ended March 31, 2012 was due
primarily to the operating expense fluctuations described above.
The increase in net loss per share for the three months ended March
31, 2012 compared to the same period in 2011 was mainly due to the
increase in net loss noted above, partially offset by an increase
in weighted-average shares outstanding in 2012 as a result of our
February 2011 and 2012 public offerings of common stock.
ARDEA BIOSCIENCES, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended
March 31,
(Unaudited)
----------------------------
2012 2011
------------- -------------
Revenues:
License fees $ 1,077 $ 1,077
Sponsored research 73 90
Reimbursable research and development costs 326 603
------------- -------------
Total revenues 1,476 1,770
Operating expenses:
Research and development 36,803 12,715
General and administrative 5,686 4,249
------------- -------------
Total operating expenses* 42,489 16,964
Loss from operations (41,013) (15,194)
Other income (expense):
Interest income 100 107
Interest expense (10) (134)
Other income, net 1 3
------------- -------------
Total other income (expense) 91 (24)
------------- -------------
Net loss $ (40,922) $ (15,218)
============= =============
Basic and diluted net loss per share $ (1.25) $ (0.59)
============= =============
Shares used in computing basic and diluted net
loss per share 32,837 25,782
============= =============
* Includes $3.1 million in non-cash, stock-based compensation
expense for the three months ended March 31, 2012, as compared to
$2.4 million for the same period in 2011.
Condensed Consolidated Balance Sheet Data
(in thousands)
March 31, December 31,
2012 2011
(Unaudited)
------------- -------------
Cash, cash equivalents and short-term
investments $ 212,939 $ 95,996
Total assets $ 225,968 $ 104,229
Total stockholders' equity $ 202,456 $ 82,247
About Ardea Ardea is a biotechnology
company based in San Diego, California, focused on the development
of small-molecule therapeutics for the treatment of serious
diseases. Ardea's most advanced clinical-stage product candidates
include lesinurad, formerly known as RDEA594, a selective, oral
URAT1 transporter inhibitor for the chronic management of
hyperuricemia in patients with gout and BAY 86-9766, formerly known
as RDEA119, a specific inhibitor of mitogen-activated ERK kinase
(MEK) for the treatment of cancer which is being developed under a
global license agreement with Bayer HealthCare. For more
information please visit: www.ardeabio.com
Forward-Looking Statements Statements
contained in this communication regarding matters that are not
historical facts are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Because such statements are subject to risks and uncertainties,
actual results may differ materially from those expressed or
implied by such forward-looking statements. Such statements
include, but are not limited to, statements regarding the timing
and anticipated completion of the proposed merger, the benefits and
synergies expected to result from the proposed merger, the
anticipated customer base for Ardea following the completion of the
proposed merger, Ardea's plans and goals, the expected properties
and benefits of lesinurad, BAY 86-9766 (RDEA119), RDEA3170 and
Ardea's other compounds and the timing and results of Ardea's
preclinical, clinical and other studies, and other statements that
are not purely statements of historical fact. These forward-looking
statements are made on the basis of the current beliefs,
expectations and assumptions of the management of Ardea and are
subject to significant risks and uncertainty. Investors are
cautioned not to place undue reliance on any such forward-looking
statements. Risks that contribute to the uncertain nature of the
forward-looking statements include any difficulties associated with
integrating Ardea's drug development programs into AstraZeneca's
operations, potential adverse reactions or changes to business
relationships resulting from the announcement or completion of the
proposed merger, unexpected costs, charges or expenses resulting
from the proposed merger, litigation or adverse judgments relating
to the proposed merger, risks relating to the consummation of the
contemplated merger, including the risk that the required
stockholder approval might not be obtained in a timely manner or at
all or that other closing conditions will not be satisfied, any
difficulties associated with requests or directions from
governmental authorities resulting from their reviews of the
transaction, and any changes in general economic and/or
industry-specific conditions, risks related to the outcome of
preclinical and clinical studies, risks related to regulatory
approvals, delays in commencement of preclinical and clinical
studies, costs associated with Ardea's drug discovery and
development programs, and risks related to the outcome of Ardea's
business development activities, including collaboration or license
agreements. Certain of these and other risks and uncertainties are
described more fully in Ardea's most recently filed SEC documents,
including Ardea's Annual Report on Form 10-K and Ardea's Quarterly
Reports on Form 10-Q, under the headings "Risk Factors." All
forward-looking statements contained in this communication speak
only as of the date on which they were made. Ardea undertakes no
obligation to update such statements to reflect events that occur
or circumstances that exist after the date on which they were
made.
Additional Information and Where to Find
It In connection with the proposed merger described in this
communication (the "Merger"), a proxy statement of Ardea and other
materials will be filed with the SEC. COMPANY INVESTORS ARE URGED
TO READ THE PROXY STATEMENT AND OTHER MATERIALS CAREFULLY WHEN THEY
BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION
ABOUT ARDEA AND THE PROPOSED MERGER. Investors will be able to
obtain copies of the proxy statement (when available) and other
relevant documents filed with the SEC for free from the SEC's
website at http://www.sec.gov or from Ardea's website at
http://www.ardeabio.com. Stockholders will also be able to obtain
copies of the proxy statement and other documents related to the
Merger (when available) for free by written request to Ardea
Biosciences, Inc., c/o Corporate Secretary, 4939 Directors Place,
San Diego, California 92121.
Participants in Solicitation Ardea and its
directors, executive officers and other members of its management
and employees may be deemed to be participants in the solicitation
of proxies from its stockholders in connection with the proposed
Merger. Information about the executive officers and directors of
Ardea and their ownership of Ardea's common stock is set forth in
the proxy statement for Ardea's 2012 Annual Meeting of Stockholders
filed with the SEC on April 10, 2012. Certain directors and
executive officers of Ardea may have direct or indirect interests
in the Merger due to securities holdings, pre-existing or future
indemnification arrangements, vesting of options or other
securities or rights to severance payments if their employment is
terminated following the Merger. Additional information regarding
Ardea and the interests of its executive officers and directors in
the Merger will be contained in the proxy statement regarding the
Merger that will be filed by Ardea with the SEC.
Contact: John Beck Ardea Biosciences, Inc. (858) 652-6523
Email Contact
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