CV Therapeutics Reports 2006 First Quarter Financial Results
April 25 2006 - 5:03PM
PR Newswire (US)
PALO ALTO, Calif., April 25 /PRNewswire-FirstCall/ -- CV
Therapeutics, Inc. (NASDAQ:CVTX) today reported financial results
for the first quarter ended March 31, 2006. For the quarter ended
March 31, 2006, the Company reported a net loss of $70.5 million,
or $1.57 per share. This compares to a net loss of $46.4 million,
or $1.31 per share, for the same quarter in 2005 and to a net loss
of $74.1 million or $1.65 per share, for the prior quarter ended
December 31, 2005. At March 31, 2006, the Company had cash, cash
equivalents and marketable securities of approximately $373.3
million, compared to $460.2 million at December 31, 2005. Operating
expenses for the quarter ended March 31, 2006 were $76.3 million.
This compares to operating expenses of $51.5 million for the same
quarter in 2005 and to operating expenses of $75.5 million for the
quarter ended December 31, 2005. Effective January 1, 2006, the
Company adopted SFAS 123R, Share-Based Payment, and operating
expenses for the quarter ended March 31, 2006 include additional
employee stock-based compensation expense related to options not
previously recognized for both the same period in the prior year
and the quarter ended December 31, 2005. The increase in operating
expenses for the quarter ended March 31, 2006 compared to the same
period in the prior year was primarily due to higher selling,
general and administrative expenses associated with the Company's
national cardiovascular specialty sales force that was recruited in
the second and third quarters of 2005, other expenses incurred to
launch Ranexa(TM) (ranolazine extended-release tablets) and
co-promote ACEON(R) (perindopril erbumine) Tablets and higher
headcount related expenses, which includes stock-based
compensation, in other areas to support the Company's increased
commercialization and business activities. These increases were
partially offset by lower expenses for Phase 3 regadenoson studies
and the capitalization of Ranexa manufacturing costs as inventory
in the current quarter versus the expensing of these costs in the
same quarter in 2005 prior to receiving FDA approval of Ranexa. The
small increase in operating expenses compared to the quarter ended
December 31, 2005 was primarily due to expenses incurred to
commence commercial product sales of Ranexa and stock-based
compensation expense recognized as a result of the adoption of SFAS
123R on January 1, 2006. The increase was largely offset by the
capitalization of Ranexa manufacturing costs, lower research and
development expenses for our Ranexa studies, and lower ACEON(R)
co-promotion expenses in the current quarter. The Company
recognized collaborative research revenue of $4.4 million for the
quarter ended March 31, 2006, compared to $5.6 million for the same
quarter in 2005. Collaborative research revenue recognized
primarily relates to the reimbursement of certain regadenoson
development costs from a collaborative partner and amortization of
up-front payments earned. For the quarter ended March 31, 2006, the
Company also recorded $0.7 million of co-promotion revenue because
sales of ACEON(R) exceeded the baseline specified in the amended
co-promotion agreement with Solvay Pharmaceuticals, Inc. The
Company received FDA approval for Ranexa on January 27, 2006 and
commenced commercial product sales of Ranexa in March 2006. Due to
customary product launch return privileges granted on product sales
to wholesalers during March 2006, the Company has deferred
recognition of Ranexa product revenue of $6.0 million for the
quarter ended March 31, 2006. Company management will webcast a
conference call on April 25, 2006 at 5:00 p.m. EDT, 2:00 p.m. PDT,
on the Company's website. To access the live webcast, please log on
to the Company's website at http://www.cvt.com/ and go to the
Investor Information section. Alternatively, domestic callers may
participate in the conference call by dialing (888) 370-6121, and
international callers may participate in the conference call by
dialing (706) 679-7163. Webcast and telephone replays of the
conference call will be available approximately two hours after the
completion of the call through Tuesday, May 2, 2006. Domestic
callers can access the replay by dialing (800) 642-1687, and
international callers can access the replay by dialing (706)
645-9291; the PIN access number is 7913129. About CV Therapeutics
CV Therapeutics, Inc., headquartered in Palo Alto, California, is a
biopharmaceutical company focused on applying molecular cardiology
to the discovery, development and commercialization of novel, small
molecule drugs for the treatment of cardiovascular diseases. CV
Therapeutics' approved products include Ranexa(TM) (ranolazine
extended-release tablets) and ACEON(R) (perindopril erbumine)
Tablets. Ranexa is approved for the treatment of chronic angina in
patients who have not achieved an adequate response with other
antianginal drugs, and should be used in combination with
amlodipine, beta-blockers or nitrates. In addition, CV Therapeutics
co-promotes ACEON(R), an ACE inhibitor, for reduction of the risk
of cardiovascular mortality or nonfatal myocardial infarction in
patients with stable coronary artery disease and treatment of
essential hypertension. CV Therapeutics also has other clinical and
preclinical drug development candidates and programs, including
regadenoson, which is being developed for potential use as a
pharmacologic stress agent in myocardial perfusion imaging studies.
Regadenoson has not been approved for marketing by any regulatory
authorities. Except for the historical information contained
herein, the matters set forth in this press release, including
statements as to commercialization of products, are forward-looking
statements within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and uncertainties
that may cause actual results to differ materially, including early
stage of development; regulatory review and approval of our
products; special protocol assessment agreement; the conduct and
timing of clinical trials; commercialization of products; market
acceptance of products; product labeling; concentrated customer
base; and other risks detailed from time to time in CV
Therapeutics' SEC reports, including its Annual Report on Form 10-K
for the year ended December 31, 2005. CV Therapeutics disclaims any
intent or obligation to update these forward-looking statements. CV
THERAPEUTICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts) (unaudited) Quarter ended
March 31, 2006 2005 Revenues Collaborative research $4,376 $5,630
Co-promotion 688 -- Total revenues 5,064 5,630 Operating expenses:
Research and development 31,460 35,129 Selling, general and
administrative 44,827 16,355 Total operating expenses 76,287 51,484
Loss from operations (71,223) (45,854) Interest and other income
(expense), net 749 (568) Net loss $(70,474) $(46,422) Basic and
diluted net loss per share $(1.57) $(1.31) Shares used in computing
basic & diluted net loss per share 44,982 35,498 CONDENSED
CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) March 31,
December 31, 2006 2005 (A) Assets: Cash, cash equivalents, and
marketable securities $373,263 $460,183 Other current assets 43,013
26,883 Total current assets 416,276 487,066 Property and equipment,
net 22,916 20,491 Other assets 28,175 25,004 Total assets $467,367
$532,561 Liabilities and stockholders' equity: Current liabilities
$58,610 $63,527 Convertible subordinated notes 399,500 399,500
Other long-term obligations 5,404 8,544 Stockholders' equity 3,853
60,990 Total liabilities and stockholders' equity $467,367 $532,561
(A) Derived from the audited financial statements included in our
Annual Report on Form 10-K for the fiscal year ended December 31,
2005. Certain reclassifications have been made to prior period
balances to conform to the current presentation. DATASOURCE: CV
Therapeutics, Inc. CONTACT: investors, Dan Spiegelman, SVP &
Chief Financial Officer, +1-650-384-8509, or Christopher Chai, Vice
President, Treasury and Investor Relations, +1-650-384-8560, or
media, John Bluth, Senior Director, Corporate Communications,
+1-650-384-8850, all of CV Therapeutics, Inc. Web site:
http://www.cvt.com/
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