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8-K - FORM 8-K - IDENIX PHARMACEUTICALS INC | c16037e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Idenix Pharmaceuticals Contacts:
Kelly Barry (617) 995-9033 (media)
Eric Hoffman (617) 224-4485 (investors)
Kelly Barry (617) 995-9033 (media)
Eric Hoffman (617) 224-4485 (investors)
IDENIX PHARMACEUTICALS REPORTS FIRST QUARTER 2011 FINANCIAL RESULTS
Cambridge, Mass., April 27, 2011 - Idenix Pharmaceuticals, Inc. (NASDAQ: IDIX), a
biopharmaceutical company engaged in the discovery and development of drugs for the treatment of
human viral diseases, today reported unaudited financial results for the first quarter of 2011. At
March 31, 2011, Idenixs cash and cash equivalents totaled $31.4 million.
First Quarter 2011 Financial Results
For the first quarter ended March 31, 2011, Idenix reported total revenues of $4.0 million,
compared to total revenues of $2.7 million in the first quarter of 2010. The company reported a net
loss of $8.2 million, or a loss of $0.11 per basic and diluted share, for the first quarter ended
March 31, 2011, compared to a net loss of $16.2 million, or a loss of $0.24 per basic and diluted
share for the first quarter ended March 31, 2010. The $8.0 million reduction in net loss in 2011
was due primarily to fewer expenses associated with the companys HCV drug candidates, IDX184 and
IDX320, and a lack of restructuring expenses in 2011. During the first quarter of 2010, the company
was conducting a phase IIa clinical trial of IDX184 and a phase I clinical study of IDX320, whereas
there were no ongoing studies with either drug candidate in the first quarter of 2011. The company
expects that expenses will increase during 2011 as a result of its plans to initiate a phase IIb
clinical trial of IDX184 in the second half of 2011.
Underwritten Offering and Private Placement
On April 13, 2011, Idenix priced an underwritten offering of 21,056,500 shares of its common stock
at a public offering price of $2.80 per share. JP Morgan acted as the sole book-running manager and
underwriter for the offering. Concurrent with the underwritten offering, Idenix also issued
1,785,714 shares of its common stock to Novartis Pharma AG through a private placement at $2.80 per
share. After the underwriting discount and estimated offering expenses payable by the company for
both these transactions, Idenix received net proceeds of approximately $60.2 million. The
underwritten offering was completed pursuant to a shelf registration statement filed with the
Securities and Exchange Commission in September 2008 for an indeterminate number of shares of
common stock, up to $100.0 million. Following this offering, the company has issued shares
aggregating over $100.0 million, thereby fully utilizing the shelf registration statement.
Clinical Program Update
Idenix has completed dosing in the single dose bioavailability study in healthy volunteers of a
tablet formulation of IDX184 that the company intends to use in the phase IIb clinical trial of
IDX184. The results of this bioavailability study are expected during the second quarter of 2011.
2011 Financial Guidance
The company expects that its current cash and cash equivalents, the anticipated royalty payments
associated with product sales of Tyzeka®/Sebivo® (telbivudine) and the net proceeds from the
underwritten offering and private placement on April 13, 2011 will be sufficient to satisfy its
cash
needs until at least the second quarter of 2012. This guidance assumes no additional milestone
payments, license fees, reimbursement for development programs or financing activities.
About Idenix
Idenix Pharmaceuticals, Inc., headquartered in Cambridge, Massachusetts, is a biopharmaceutical
company engaged in the discovery and development of drugs for the treatment of human viral
diseases. Idenixs current focus is on the treatment of patients with chronic hepatitis C
infection. For further information about Idenix, please refer to www.idenix.com.
Forward-Looking Statements
This press release contains forward-looking statements for purposes of the safe harbor provisions
of The Private Securities Litigation Reform Act of 1995, including but not limited to the
statements regarding the companys future business and financial performance. For this purpose, any
statements contained herein that are not statements of historical fact may be deemed
forward-looking statements. Without limiting the foregoing, the words expect, plans,
anticipates, will, and similar expressions are also intended to identify forward-looking
statements, as are expressed or implied statements with respect to the companys potential pipeline
candidates, including any expressed or implied statements regarding the efficacy and safety of our
drug candidates, the likelihood and success of any future clinical trials involving our drug
candidates. Actual results may differ materially from those indicated by such forward-looking
statements as a result of risks and uncertainties, including but not limited to the following:
there can be no guarantees that the company will advance any clinical product candidate or other
component of its potential pipeline to the clinic, to the regulatory process or to
commercialization; managements expectations could be affected by unexpected regulatory actions or
delays; uncertainties relating to, or unsuccessful results of, clinical trials, including
additional data relating to the ongoing clinical trials evaluating its product candidates; the
companys ability to obtain additional funding required to conduct its research, development and
commercialization activities; the companys dependence on its collaborations with Novartis Pharma
AG and GlaxoSmithKline/ViiV Healthcare; changes in the companys business plan or objectives; the
ability of the company to attract and retain qualified personnel; competition in general; and the
companys ability to obtain, maintain and enforce patent and other intellectual property protection
for its product candidates and its discoveries. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause actual results to be materially
different from any future results, performance or achievements expressed or implied by such
statements. These and other risks which may impact managements expectations are described in
greater detail under the heading Risk Factors in the companys annual report on Form 10-K for the
year ended December 31, 2010, as filed with the Securities and Exchange Commission (SEC) and in any
subsequent periodic or current report that the company files with the SEC.
All forward-looking statements reflect the companys estimates only as of the date of this release
(unless another date is indicated) and should not be relied upon as reflecting the companys views,
expectations or beliefs at any date subsequent to the date of this release. While Idenix may elect
to update these forward-looking statements at some point in the future, it specifically disclaims
any obligation to do so, even if the companys estimates change.
IDENIX PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Revenues: |
||||||||
Collaboration revenue related party |
$ | 3,345 | $ | 2,416 | ||||
Other revenue |
656 | 267 | ||||||
Total revenues |
4,001 | 2,683 | ||||||
Operating expenses (1): |
||||||||
Cost of revenues |
547 | 558 | ||||||
Research and development |
8,083 | 11,762 | ||||||
General and administrative |
3,914 | 4,777 | ||||||
Restructuring charges |
| 2,238 | ||||||
Total operating expenses |
12,544 | 19,335 | ||||||
Loss from operations |
(8,543 | ) | (16,652 | ) | ||||
Other income, net |
308 | 441 | ||||||
Loss before income taxes |
(8,235 | ) | (16,211 | ) | ||||
Income tax expense |
(1 | ) | (1 | ) | ||||
Net loss |
$ | (8,236 | ) | $ | (16,212 | ) | ||
Basic and diluted net loss per share: |
$ | (0.11 | ) | $ | (0.24 | ) | ||
Shares used in calculation of basic and diluted net loss per share: |
73,118 | 66,370 | ||||||
(1) Share-based compensation expenses
included in operating expenses
amounted to approximately: |
||||||||
Research and development |
$ | 271 | $ | 320 | ||||
General and administrative |
326 | 661 |
IDENIX PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
March 31, | December 31, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 31,407 | $ | 46,115 | ||||
Receivables from related party |
1,024 | 840 | ||||||
Other current assets |
2,440 | 2,535 | ||||||
Total current assets |
34,871 | 49,490 | ||||||
Intangible asset, net |
9,559 | 9,843 | ||||||
Property and equipment, net |
6,637 | 7,179 | ||||||
Other assets |
3,859 | 3,372 | ||||||
Total assets |
$ | 54,926 | $ | 69,884 | ||||
LIABILITIES AND STOCKHOLDERS DEFICIT |
||||||||
Accounts payable and accrued expenses |
$ | 9,222 | $ | 14,030 | ||||
Deferred revenue, related party |
3,106 | 3,036 | ||||||
Other current liabilities |
2,985 | 2,928 | ||||||
Total current liabilities |
15,313 | 19,994 | ||||||
Other long-term obligations |
51,728 | 52,398 | ||||||
Deferred revenue, related party, net of current portion |
28,469 | 28,588 | ||||||
Total liabilities |
95,510 | 100,980 | ||||||
Stockholders deficit |
(40,584 | ) | (31,096 | ) | ||||
Total liabilities and stockholders deficit |
$ | 54,926 | $ | 69,884 | ||||