- 64 percent year-over-year increase in Ranexa(R) net revenue -
PALO ALTO, Calif., Feb. 20 /PRNewswire-FirstCall/ -- CV
Therapeutics, Inc. (NASDAQ:CVTX) today reported financial results
for the fourth quarter and full year ended December 31, 2008. For
the year ended December 31, 2008, the company reported a net loss
of $98.5 million, or $1.61 per share, compared to a net loss of
$181.0 million, or $3.05 per share, for the year ended December 31,
2007. This $1.44 per share reduction represents a 47 percent
improvement in net loss from 2007 to 2008. For the quarter ended
December 31, 2008, the company reported a net loss of $37.0
million, or $0.60 per share. This compares to a net loss of $34.1
million, or $0.57 per share, for the same quarter in 2007. "2008
was an exceptional year for CV Therapeutics and its shareholders,
as we received three major regulatory approvals, retired more than
$100 million in debt, completed two major strategic transactions
bringing in more than $250 million in non-dilutive net cash, grew
our Ranexa business by 64 percent year-over-year, and saw our share
price outperform the NASDAQ by more than 40 percent," said Dr.
Louis Lange, chairman and chief executive officer of CV
Therapeutics. "With the company's solid cash position, the full
promotional launch of the improved U.S. Ranexa labeling and the
imminent introduction of Ranexa in Europe, we expect 2009 to be
another outstanding year, highlighted by increasing revenues and
pipeline advancement with CVT-3619 and other programs. We expect to
be able to provide an update regarding profitability timing by the
middle of the year," Lange added. For the quarter ended December
31, 2008, the company recorded $31.5 million of net product sales
of Ranexa(R) (ranolazine extended-release tablets) in the U.S.,
which represents an increase of four percent compared to the $30.3
million of net product sales recorded in the prior quarter ended
September 30, 2008 and an increase of 51 percent compared to the
$20.9 million of net product sales recorded in the same quarter in
the prior year. For the full year ended December 31, 2008, the
company recorded $109.3 million of net product sales of Ranexa in
the U.S., which represents an increase of 64 percent compared to
the $66.7 million of net product sales recorded in the prior full
year ended December 31, 2007. Total Ranexa prescriptions (TRx), as
tracked by IMS, reached a record high of 11,604 TRx for the week
ended February 6, 2009. This number includes a record high of 4,322
new prescriptions (NRx), and a record 1,361 new to brand
prescriptions (NBRx), which represent first time Ranexa patients.
Since the FDA approval of significantly improved U.S. labeling in
November, average weekly TRx (excluding holiday weeks) have
increased by 12 percent, NRx by 21 percent and NBRx by 24 percent.
For the quarter ended December 31, 2008, the company recorded total
revenues of $41.9 million, which consisted of $31.5 million of net
product sales of Ranexa, $10.1 million of royalty and license
revenue and $0.3 million of collaboration, milestone and other
revenue. The $10.1 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) (regadenoson
injection) by Astellas US LLC (Astellas), $5.4 million of royalty
revenue earned under our collaboration with Astellas and $1.6
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. For
the full year ended December 31, 2008, the company recorded revenue
of $154.5 million, consisting of $109.3 million of net product
sales of Ranexa, $18.8 million of royalty and license revenue and
$26.5 million of collaboration, milestone and other revenue. The
$18.8 million of royalty and license revenue includes $8.9 million
of amortization of our $175.0 million upfront payment earned from
TPG-Axon Capital, $8.0 million of royalty revenue earned under our
collaboration with Astellas and $1.9 million of amortization of our
$70.0 million upfront license payment from Menarini. The $26.5
million of collaboration, milestone and other revenue includes a
$12.0 million milestone payment from Astellas associated with the
U.S. Food and Drug Administration (FDA) approval for Lexiscan(R), a
$10.0 million milestone payment from TPG-Axon Capital associated
with the commercial launch of Lexiscan(R), a $3.0 million milestone
payment from Biogen Idec, Inc. received upon achievement of a
development milestone related to their Adentri(R) program and $1.5
million of collaboration and other revenue primarily related to
reimbursement of costs from our collaborative partner Astellas for
Lexiscan(R) in North America. Costs and expenses for the full year
ended December 31, 2008, excluding cost of sales, was $217.2
million. This is consistent with the company's guidance for 2008,
which stated costs and expenses, excluding cost of sales, would be
approximately $220.0 million. Total costs and expenses including
cost of sales were $236.5 million for the full year ended December
31, 2008 compared to $263.7 million for the prior year ended
December 31, 2007. The year-over-year decrease in costs and
expenses was primarily due to lower personnel-related expenses as a
result of the company's May 2007 restructuring plan and lower
research and development expense, partially offset by higher cost
of sales due to higher net product sales of Ranexa. Costs and
expenses were $69.5 million for the quarter ended December 31,
2008. This compares to total costs and expenses of $57.2 million
for the prior quarter ended September 30, 2008 and $55.8 million
for the same quarter in 2007. The increase in costs and expenses in
the quarter ended December 31, 2008 compared to the same quarter in
2007 and the prior quarter ended September 30, 2008 was consistent
with our previous guidance and was primarily due to higher sales
and marketing expenses related to commercialization of the new
Ranexa label approved by the FDA in November 2008 and higher
external research and development costs largely related to the
CVT-3619 clinical program. Our cash utilized in operations, net of
unusual events, for the quarter ended December 31, 2008 was $26.1
million compared to $14.8 million for the quarter ended September
30, 2008. For a reconciliation of cash utilized in operations,
please refer to the table provided below. The increase in cash
utilization in operations in the quarter ended December 31, 2008
compared to the prior quarter was consistent with our previous
guidance and due primarily to increased expenses relating to the
commercialization of the new Ranexa label. At December 31, 2008,
the company had cash, cash equivalents and marketable securities of
$263.4 million compared to $301.9 million at September 30, 2008.
During 2008 the company retired $107.3 million face value of our
convertible subordinated notes. The amount of 2% debt putable in
2010 has now been reduced to $39.7 million. Including this amount,
the company ended the year with a convertible subordinated notes
balance of $292.2 million. For these transactions, the company used
approximately $74.5 million in cash and issued approximately 2.0
million shares of common stock in private exchanges and open market
repurchases. In the second quarter, $48.4 million in cash was used
for repurchases which resulted in a gain of $4.8 million in the
quarter; in the third quarter, $14.2 million in cash was used for
repurchases, which resulted in a gain of $0.8 million in the
quarter; and in the fourth quarter, $11.9 million in cash was used
and approximately 2.0 million shares of common stock were issued
for open market repurchases and private exchanges, which resulted
in a net loss of $8.0 million in the quarter. In total, the net
effect of debt retirement for the full year ended December 31, 2008
was $2.4 million in loss on extinguishment of debt which was
recorded in interest and other income (expense), net. Company
management will webcast a conference call on February 20, 2009 at
8:30 a.m. EST, 5:30 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 February 27, 2009. Domestic callers can access the replay
by dialing (800) 642-1687, and international callers can access the
replay by dialing (706) 645-9291; the conference identification
number is 82673456. 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' 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; 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 September 30, 2008. CV
Therapeutics disclaims any intent or obligation to update these
forward-looking statements. --Tables to follow-- CV THERAPEUTICS,
INC. CONSOLIDATED STATEMENTS OF OPERATIONS DATA (In Thousands,
Except Per Share Amounts) (Unaudited) Three months ended Year ended
December 31, December 31, --------------------
--------------------- 2008 2007 2008 2007 -------- --------
-------- -------- Revenues: Product sales, net $31,518 $20,928
$109,264 $66,651 Royalties and license 10,141 - 18,760 -
Collaboration, milestone and other 264 1,474 26,451 16,172 Total
revenues 41,923 22,402 154,475 82,823 Costs and expenses: Cost of
sales 6,355 3,131 19,329 9,689 Research and development 22,016
19,710 75,148 94,742 Selling, general and administrative 41,082
32,950 142,073 152,496 Restructuring charges - (11) (7) 6,763 Total
costs and expenses 69,453 55,780 236,543 263,690 Loss from
operations (27,530) (33,378) (82,068) (180,867) Other income
(expense), net: Interest and other income (expense), net (6,047)
2,421 3,640 12,533 Interest expense (3,188) (3,174) (12,955)
(12,672) Total other income (expense), net (9,235) (753) (9,315)
(139) Loss before income taxes (36,765) (34,131) (91,383) (181,006)
Income tax provision 188 - 7,138 - Net loss $(36,953) $(34,131)
$(98,521) $(181,006) Basic and diluted net loss per share $(0.60)
$(0.57) $(1.61) $(3.05) Shares used in computing basic and diluted
net loss per share 61,932 59,696 61,132 59,335 CONSOLIDATED BALANCE
SHEET DATA (In Thousands) (Unaudited) December 31, December 31,
2008 2007 Assets: Cash, cash equivalents, and marketable securities
$263,360 $174,245 Other current assets 57,265 41,825 Total current
assets 320,625 216,070 Property and equipment, net 15,277 19,131
Other assets 28,071 23,635 Total assets $363,973 $258,836
Liabilities and stockholders' deficit: Current liabilities $74,589
$39,183 Deferred revenue, long-term 215,298 - Convertible
subordinated notes 292,230 399,500 Other long-term obligations
4,020 5,551 Stockholders' deficit (222,164) (185,398) Total
liabilities and stockholders' deficit $363,973 $258,836
RECONCILIATION OF CASH UTILIZED IN OPERATIONS (In Thousands)
(Unaudited) Three months ended December 31, September 30, 2008 2008
Ending cash, cash equivalents, and marketable securities $263,360
$301,862 Beginning cash, cash equivalents, and marketable
securities 301,862 274,735* Change in cash, cash equivalents, and
marketable securities $(38,502) $27,127 Adjustments for unusual
events: Cash used to repurchase convertible subordinated notes
$11,926 $14,245 Estimated tax payments 439 10,324 Milestone
obligation payment to Roche Palo Alto LLC - 9,000 Cash received for
upfront license payment from Menarini - (70,000) Cash received from
Biogen for milestone and stock purchase - (5,500) Total adjustments
12,365 (41,931) Cash utilized in operations, net of adjustments
$(26,137) $(14,804) * includes restricted cash of $2.4 million
DATASOURCE: CV Therapeutics, Inc. CONTACT: Investors & Media:
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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