Cardiome reports third quarter results VANCOUVER, Oct. 29
/PRNewswire-FirstCall/ -- Cardiome Pharma Corp. (the "Company" or
"Cardiome") reported today financial results for the third quarter
ended August 31, 2003. Amounts, unless specified otherwise, are all
in Canadian dollars. At August 31, 2003, the exchange rate was
CDN$1.00 equals U.S.$0.7217. For the quarter ended August 31, 2003,
the Company recorded a loss of $4.68 million ($0.15 per common
share), compared to a loss of $3.10 million ($0.11 per common
share) for the same period in the preceding fiscal year ("fiscal
2002"). On a year-to-date basis, Cardiome recorded a loss of $12.8
million ($0.43 per common share) for the nine months ended August
31, 2003, compared to a loss of $8.92 million ($0.41 per common
share) for the same period in fiscal 2002. The results of
operations were in line with the Company's management's
expectations. Revenue decreased to $0.34 million and $1.06 million
for the three and nine month periods ended August 31, 2003
respectively, compared to $1.31 million and $1.39 million for the
same periods in fiscal 2002. Revenue for the three and nine month
periods ended August 31, 2003 mainly includes the amortization of
deferred revenue related to the initial payment with respect to the
development and transfer agreement with UCB Farchim S.A. ("UCB")
and contract research fees for services provided to UCB. The
amortization of the remaining deferred revenue related to the
upfront payment from the Company's license agreement with
AstraZeneca A.B., which was terminated in June 2002, was the
primary source of research collaborative and licensing revenue for
the three and nine month periods ended August 31, 2002. The Company
expects to continue receiving contract research fees from UCB and
will continue to recognize as revenue the amortization of deferred
revenue related to the initial payments from the exiting agreement
with UCB. The Company also expects to recognize as revenue the
amortization of deferred revenue related to the initial payments of
US$10 million from its collaboration and license agreement with
Fujisawa Health Care, Inc. ("Fujisawa"). Research and development
expenditures increased to $3.32 million and $8.86 million for the
three and nine month periods ended August 31, 2003 respectively,
compared to $2.73 million and $6.36 million for the same periods in
fiscal 2002. The increase in research and development expenditure
was primarily due to the expanded activities in connection with the
Company's three late stage clinical development programs focused on
atrial arrhythmia, congestive heart failure ("CHF"), and
allopurinol intolerant hyperuricemia (gout). Specifically, these
increases were associated with the initiation of the first Phase
III clinical trial for intravenous application of RSD1235 in August
2003, manufacture of additional RSD1235 drug supplies, ongoing
Phase II/III clinical trial and proof-of-concept trials of
oxypurinol for the treatment of CHF, as well as the expenses
incurred to support the advancement of the gout project into
regulatory process. The Company expects to incur a higher level of
clinical development expenditures for the remainder of fiscal 2003
as its RSD1235 project, CHF project and gout project have advanced
into late stage of clinical development. The Company also expects
to recover 75% of its clinical development expenditures associated
with the Phase III clinical trial for the intravenous application
of RSD1235 from Fujisawa. Bob Rieder, President and CEO of
Cardiome, said "This quarter has seen several landmark
accomplishments by the Cardiome team". "We have greatly
strengthened the financial position of the company, have generated
exciting new clinical data on oxypurinol, and have concluded a very
attractive marketing partnership with a leading global
pharmaceutical company" added Bob Rieder. General and
administration expenses were $0.92 million and $2.63 million for
the three and nine month periods ended August 31, 2003
respectively, compared to $0.94 million and $2.58 million for the
same periods in fiscal 2002. The slight increase in general and
administration expenses on a year-to- date basis was a result of
costs to support the expanded business development activities
associated with the licensing of RSD1235. The Company expects a
moderate increase in general and administration expenses for the
remainder of fiscal 2003, as compared to fiscal 2002. The Company's
activities during the nine months ended August 31, 2003 were
financed mainly by its working capital carried forward from the
preceding fiscal year and the net proceeds released in June 2003 in
connection with the completion of a private placement of special
warrants in April 2003. At August 31, 2003, the Company had working
capital of $14 million, as compared to $16.88 million at November
30, 2002. At August 31, 2003, the Company had available cash
reserves, comprised of cash, cash equivalents and short-term
investments of $14.87 million, as compared to $19.74 million at
November 30, 2002. Subsequent to the quarter ended August 31, 2003,
the Company completed a public offering on a bought deal basis for
a total gross proceed of $23 million, including the proceed from
the exercise of the over-allotment option. The Company expects to
collect US$10 million from its collaboration and license agreement
with Fujisawa in the fourth quarter of fiscal 2003. These
additional capital resources have strengthened the Company's
financial position. The Company believes that it has sufficient
resources to fund operations into fiscal 2007. On August 15, 2003,
subject to regulatory approval, the Company announced that its
fiscal year-end will be changed from November 30 to December 31
effective December 31, 2003, so that it will coincide with the
calendar year- end. Teleconference Call Notification: October 30,
2003 1:00 p.m. EST 10:00 a.m. PST On Thursday, October 30, 2003,
Cardiome will hold a teleconference call and webcast at 1:00 p.m.
EST (10:00a.m. PST) to discuss the third quarter financial results
and to provide an update on developments of the Company. To listen
to the conference call, please dial 1-888-280-8277 or 416-695-9705.
The live or archived webcast can be accessed through Cardiome's
website at http://www.cardiome.com/. About Cardiome Pharma Corp.
Cardiome Pharma Corp. is a product-focused cardiovascular drug
development company. Cardiome has three late stage clinical drug
programs focused on atrial arrhythmias, congestive heart failure,
and hyperuricemia (gout). Cardiome's lead antiarrhythmic product,
RSD1235, is an acute-use, intravenous administration treatment for
atrial fibrillation (AF). RSD1235 selectively blocks ion channels
in the heart that are known to be active during episodes of atrial
fibrillation. This unique mechanism of action of RSD1235 combined
with supportive preclinical and clinical data suggests that RSD1235
may be able to effectively treat atrial arrhythmia with a high
margin of safety. In a phase II study completed in the fall of 2002
with new onset AF patients (n equals 56), RSD1235 terminated AF in
61% of patients versus 5% placebo within 30 minutes of the end of
infusion (p equals 0.0003). Currently available drugs to acutely
treat AF lack sufficient efficacy and have serious safety risks.
These safety issues include risk of drug induced proarrhythmia and
other cardiac liabilities. To date, no significant drug-related
adverse events have been reported in patients exposed to RSD1235.
On October 16, 2003, Cardiome and Fujisawa Healthcare Inc. entered
into a partnership granting Fujisawa North American rights to
intravenous RSD1235. Cardiome's lead product in the congestive
heart failure area is oxypurinol, a novel therapy in treating the
disease. Cardiome also plans to develop oxypurinol as a treatment
of gout for patients who are intolerant to allopurinol, the
first-line therapy for gout. Cardiome is traded on the Toronto
Stock Exchange (COM). Further information about Cardiome can be
found at: http://www.cardiome.com/. Selected Financial Highlights
(Canadian dollars) (1),(2)
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As at Balance Sheets August 31, 2003 November 30, 2002
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Cash and cash equivalents $5,400,178 $1,430,349 Short-term
investments 9,472,316 18,306,028 Amounts receivable and other
425,449 512,667 Prepaid expenses 631,129 71,199
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Total current assets 15,929,072 20,320,243 Capital assets 362,484
399,646 Intangible and other assets 26,617,454 29,111,861
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Total assets $42,909,010 $49,831,750
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Current liabilities $1,928,817 $3,437,077 Obligations under capital
lease 16,250 36,260 Deferred revenue 529,065 925,865 Shareholders'
equity 40,434,878 45,432,548
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Total liabilities and shareholders' equity $42,909,010 $49,831,750
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For the Three Months For the Nine Months Ended Ended Statements of
Loss August 31, August 31, August 31, August 31, and Deficit 2003
2002 2003 2002
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Revenue Research collaborative and licensing $342,522 $1,314,627
$1,060,385 $1,390,237
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Expenses Research and Development 3,318,759 2,726,638 8,863,110
6,358,802 General and Administration 915,603 943,987 2,630,661
2,584,841 Amortization 885,738 903,060 2,714,064 1,853,116
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5,120,100 4,573,685 14,207,835 10,796,759
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Operating loss (4,777,578) (3,259,058) (13,147,450) (9,406,522)
Other income Interest and other income 98,104 162,266 346,658
385,400
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Loss before income taxes $(4,679,474) $(3,096,792) $(12,800,792)
$(9,021,122) Future income tax recovery - - - 100,000
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Loss for the period $(4,679,474) $(3,096,792) $(12,800,792)
$(8,921,122) Deficit, beginning of period (52,547,134) (36,220,440)
(44,425,816) (30,396,110)
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Deficit, end of period $(57,226,608) $(39,317,232) $(57,226,608)
$(39,317,232)
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Basic and diluted loss per common share (3) $(0.15) $(0.11) $(0.43)
$(0.41)
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1 Condensed from the Company's unaudited financial statements. 2
Certain comparative figures have been reclassified to conform to
the financial presentation used in the current reporting period. 3
Net loss per common share is based on the weighted average number
of common shares outstanding during the period. Forward-Looking
Statement Disclaimer Statements contained in this news release
relating to future results, events and expectation are
forward-looking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievement of the company, or industry results, to
be materially different from any future results, performance or
achievements expressed or implied by such statements. Such factors
include, among others, those described in the Company's annual
report on Form 20-F. The Toronto Stock Exchange has not reviewed
and does not accept responsibility for the adequacy or accuracy of
this release. ON BEHALF OF THE BOARD "Robert Rieder" President
& Chief Executive Officer DATASOURCE: Cardiome Pharma Corp.
CONTACT: Cardiome Pharma Corp. Contact, Don Graham, Director of
Corporate Communications, T: (604) 677-6905 ext. 109, E:
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