- Ranexa(R) net revenue grows 19 percent quarter-over-quarter -
PALO ALTO, Calif., Nov. 6 /PRNewswire-FirstCall/ -- CV
Therapeutics, Inc. (NASDAQ:CVTX) today reported financial results
for the third quarter ended September 30, 2008. For the quarter
ended September 30, 2008, the Company reported a net loss of $25.4
million, or $0.41 per share. This compares to a net loss of $34.2
million, or $0.58 per share, for the same quarter in 2007 and $4.3
million, or $0.07 per share, for the prior quarter ended June 30,
2008. Excluding the impact of the $22.0 million milestone revenue
recognized in the quarter ended June 30, 2008, the prior quarter
net loss would have been $26.3 million. The milestone payments
received in the second quarter of 2008 were $12.0 million from
Astellas Pharma U.S. Inc. (Astellas) associated with the U.S. Food
and Drug Administration approval for Lexiscan(R) (regadenoson)
injection and $10.0 million relating to a milestone payment from
TPG-Axon Capital associated with the commercial launch of
Lexiscan(R). For the quarter ended September 30, 2008, the Company
recorded $30.3 million of net product sales of Ranexa(R)
(ranolazine extended-release tablets) in the U.S., which represents
an increase of 19 percent compared to the $25.4 million of net
product sales recorded in the prior quarter ended June 30, 2008 and
an increase of 65 percent compared to the $18.4 million of net
product sales recorded in the same quarter in the prior year. For
the quarter ended September 30, 2008, the Company recorded total
revenues of $38.1 million, which consisted of $30.3 million of net
product sales of Ranexa, $4.7 million of royalty and license
revenue and $3.2 million of collaboration, milestone and other
revenue. The $4.7 million of royalty and license revenue includes
$3.1 million of amortization of our $175.0 million upfront payment
earned from TPG-Axon Capital in exchange for rights to 50 percent
of our royalty on North American sales of Lexiscan(R), $1.3 million
of royalty revenue earned under our collaboration with Astellas and
$0.3 million of amortization of our $70.0 million upfront license
payment from the Menarini Group (Menarini) for the exclusive rights
to Ranexa in the European Union and certain other countries. The
$3.2 million of collaboration, milestone and other revenue includes
a $3.0 million milestone payment from Biogen Idec, Inc. received
upon achievement of a development milestone related to the
Adentri(R) program and reimbursement of costs from Astellas, our
collaborative partner for Lexiscan(R) in North America. Costs and
expenses were $57.2 million for the quarter ended September 30,
2008. This compares to total costs and expenses of $56.8 million
for the prior quarter ended June 30, 2008 and $53.7 million for the
same quarter in 2007. We expect to have taxable income for 2008,
despite the overall loss under generally accepted accounting
principles, primarily due to the recognition for tax purposes of
income from the upfront payments from Menarini and TPG-Axon of
$70.0 million and $185.0 million, respectively. These revenues are
deferred and recognized over several periods in our financial
results, but are included as taxable income in the current year in
our tax returns. The recognition of taxable income from these
payments results in tax expense of $6.9 million for the nine months
ended September 30, 2008, due to federal alternative minimum tax
and California state income tax. During the quarter ended September
30, 2008, the Company had several unusual events which affected our
quarterly cash flow. We received a $70.0 million upfront license
payment from Menarini. We also received payments totaling $5.5
million from Biogen Idec, Inc. related to an achievement of a
development milestone and an equity investment in the Company's
stock. Offsetting these cash inflows, we used $14.2 million to
repurchase $14.9 million face value of our convertible subordinated
notes and $9.0 million to meet a milestone obligation to Roche Palo
Alto LLC resulting from marketing authorization of ranolazine in
the European Union. Additionally, the Company made an estimated tax
payment of $10.3 million primarily as a result of the cash received
from Menarini. Excluding the unusual cash flows above, our cash
utilized for the quarter ended September 30, 2008 was $14.8
million. This compares to our cash utilized for the prior quarter
of $21.7 million. The decrease in cash utilization in the quarter
ended September 30, 2008 compared to the prior quarter was due
primarily to higher cash receipts in the current quarter associated
with higher quarter-over-quarter product revenue. At September 30,
2008, the Company had cash, cash equivalents and marketable
securities of $301.9 million compared to cash, cash equivalents,
marketable securities and restricted cash of $274.7 million at June
30, 2008. Company management will webcast a conference call on
November 6, 2008 at 8:00 a.m. EST, 5:00 a.m. PST, 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) 524-6241, 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, November 13, 2008. 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 68392680. About CV Therapeutics CV Therapeutics,
Inc., headquartered in Palo Alto, California, is a
biopharmaceutical company primarily focused on applying molecular
cardiology to the discovery, development and commercialization of
novel, small molecule drugs for the treatment of cardiovascular
diseases. CV Therapeutics Ltd. is the company's European subsidiary
based in the United Kingdom. CV Therapeutics' approved products in
the United States include Ranexa(R) (ranolazine extended-release
tablets), indicated for the treatment of chronic angina, and
Lexiscan(R) (regadenoson) injection for use as a pharmacologic
stress agent in radionuclide myocardial perfusion imaging in
patients unable to undergo adequate exercise stress. Ranexa(R)
(ranolazine prolonged-release tablets) is approved for use in the
European Union as add-on therapy for the symptomatic treatment of
patients with stable angina pectoris who are inadequately
controlled or intolerant to first-line anti anginal therapies. CV
Therapeutics also has other clinical and preclinical drug
development candidates and programs. Except for the historical
information contained herein, the matters set forth in this press
release, including statements 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; special protocol assessment
agreement; the conduct and timing of clinical trials;
commercialization of products; market acceptance of products;
product labeling; concentrated customer base; reliance on strategic
partnerships and collaborations; uncertainties in drug development;
uncertainties regarding intellectual property and other risks
detailed from time to time in CV Therapeutics' SEC reports,
including its Quarterly Report on Form 10-Q for the quarter ended
June 30, 2008. CV Therapeutics disclaims any intent or obligation
to update these forward-looking statements. CV THERAPEUTICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS DATA (In Thousands, Except
Per Share Amounts) (Unaudited) Three months ended Nine months ended
September 30, September 30, 2008 2007 2008 2007 Revenues: Product
sales, net $30,274 $18,419 $77,746 $45,723 Royalties and license
4,663 - 8,619 - Collaboration, milestone and other 3,184 1,344
26,187 14,698 Total revenues 38,121 19,763 112,552 60,421 Costs and
expenses: Cost of sales 5,240 2,609 12,974 6,558 Research and
development 18,736 19,055 53,132 75,032 Selling, general and
administrative 33,199 30,594 100,991 119,546 Restructuring charges
- 1,407 (7) 6,774 Total costs and expenses 57,175 53,665 167,090
207,910 Loss from operations (19,054) (33,902) (54,538) (147,489)
Other income (expense), net: Interest and other income, net 1,787
2,847 9,655 10,112 Interest expense (2,932) (3,166) (9,767) (9,498)
Total other income (expense), net (1,145) (319) (112) 614 Loss
before income taxes (20,199) (34,221) (54,650) (146,875) Income tax
provision 5,176 - 6,918 - Net loss $(25,375) $(34,221) $(61,568)
$(146,875) Basic and diluted net loss per share $(0.41) $(0.58)
$(1.01) $(2.48) Shares used in computing basic and diluted net loss
per share 61,175 59,458 60,864 59,213 Reconciliation of GAAP Items
to Non-GAAP Items: Net loss, GAAP as reported $(25,375) $(34,221)
$(61,568) $(146,875) Adjustments: Non-recurring stock-based
compensation charges - - - 13,186 Restructuring charges - 1,407 -
6,774 Net loss, non-GAAP $(25,375) $(32,814) $(61,568) $(126,915)
Basic and diluted net loss per share, as reported $(0.41) $(0.58)
$(1.01) $(2.48) Adjustments $- $0.02 $- $0.34 Basic and diluted net
loss per share, non-GAAP** $(0.41) $(0.55) $(1.01) $(2.14) Shares
used in computing basic and diluted net loss per share 61,175
59,458 60,864 59,213 **The values shown above are exact; totals may
not appear to sum due to rounding CONSOLIDATED BALANCE SHEET DATA
(In Thousands) (Unaudited) September 30, December 31, 2008 2007
Assets: Cash, cash equivalents, and marketable securities $301,862
$174,245 Other current assets 45,798 41,825 Total current assets
347,660 216,070 Property and equipment, net 15,640 19,131 Other
assets 28,687 23,635 Total assets $391,987 $258,836 Liabilities and
stockholders' deficit: Current liabilities $61,677 $39,183 Deferred
revenue, long-term 220,033 - Convertible subordinated notes 331,580
399,500 Other long-term obligations 4,297 5,551 Stockholders'
deficit (225,600) (185,398) Total liabilities and stockholders'
deficit $391,987 $258,836 DATASOURCE: CV Therapeutics, Inc.
CONTACT: John Bluth, Executive Director, Corporate Communications
& Investor Relations, CV Therapeutics, Inc., +1-650-384-8850
Web site: http://www.cvt.com/
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