CV Therapeutics Significantly Reduces Operating Expenses
May 24 2007 - 7:30AM
PR Newswire (US)
-- Focused commercial and R&D efforts extend cash resources --
PALO ALTO, Calif., May 24 /PRNewswire-FirstCall/ -- CV
Therapeutics, Inc. (NASDAQ:CVTX) announced today that it is
lowering its annual operating expense guidance by approximately $75
million. Prior operating expense guidance for the calendar year
2007 was $275-$285 million. The Company now estimates that
operating expenses for the next four quarters (Q3 2007 to Q2 2008)
will total $200-$210 million. These planned savings will be
realized primarily through significant optimization of the
Company's field sales organization, enhanced focus of R&D
activities and substantial reductions in SG&A spending, and
have been achieved through a combination of reductions in field and
headquarters personnel and outside expenses. "Based on the results
from the MERLIN TIMI-36 study and our historical Ranexa revenue
trend, we believe that the difficult but necessary action we have
taken to significantly reduce our operating expenses improves the
Company's potential to begin generating profits sooner, by allowing
us to maximize the potential upside of future revenue growth, new
potential indications and partnership opportunities with Ranexa,
regadenoson or our other pipeline products," said Louis G. Lange,
M.D., Ph.D., CV Therapeutics chairman and chief executive officer.
The reorganization of the Company's commercial operations is
intended to maximize profitability on a territory-by-territory
basis, while retaining the ability to capitalize on potential
continued growth in Ranexa revenues. Based on this optimized sales
alignment, which eliminated or consolidated a number of
unprofitable territories, most new territories will be profitable
immediately after the reorganization. The Company will now have
approximately 140 sales territories, compared to approximately 250
sales territories previously. The Company also has reduced G&A
expenses for the next four quarters (Q3 2007 to Q2 2008) by
approximately 15 percent. In total, SG&A expenses in the United
States will be reduced by $55 - 60 million, or approximately 33
percent over that time period. Overall R&D spending is expected
to be reduced by almost 20 percent, or $15 - 20 million on an
annual basis. This focused R&D budget will allow the Company to
continue pursuing several promising programs, while delaying,
scaling-back or potentially partnering some early stage preclinical
programs. These R&D reductions are in addition to the $30
million annual reduction in R&D spending compared to 2006
levels that were previously announced. In conjunction with the
reduction in operating expenses, the Company expects to record
approximately $16-20 million in one-time expenses and charges in
the second quarter of 2007. Conference Call Company management will
webcast a conference call on May 24, 2007 at 8:30 a.m. EDT, 5:30
a.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 (866)
524-6247, and international callers may participate in the
conference call by dialing (706) 679-3061. Webcast and telephone
replays of the conference call will be available approximately two
hours after the completion of the call through Thursday, May 31,
2007. 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 2188271. 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 product,
Ranexa(R) (ranolazine extended-release tablets), is indicated 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. 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, and CVT-6883, which
is being developed as a potential treatment for cardiopulmonary
diseases. Regadenoson and CVT-6883 have not been determined by any
regulatory authorities to be safe or effective in humans for any
use. Except for the historical information contained herein, the
matters set forth in this press release, including statements as to
cash reserves and potential profitability and as to research and
development and 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
operating losses and fluctuations in operating results; capital
requirements; regulatory review and approval of our products;
dependence on Ranexa; special protocol assessment agreement for
Ranexa; 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-Q for the quarter ended
March 31, 2007. CV Therapeutics disclaims any intent or obligation
to update these forward-looking statements. DATASOURCE: CV
Therapeutics, Inc. CONTACT: Investor and Media Contact, John Bluth,
Senior Director, Corporate Communications & Investor Relations
of CV Therapeutics, Inc., +1-650-384-8850 Web site:
http://www.cvt.com/
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