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| 8-K - FORM 8-K - ARADIGM CORP | f59194e8vk.htm |
Exhibit 99.1
Aradigm Announces First Quarter 2011 Financial Results
Hayward, CA — May 12, 2011 — Aradigm Corporation (OTC BB: ARDM.OB) (the “Company”) today
announced financial results for the first quarter and three months ended March 31, 2011.
Total revenue was $0.2 million for the first quarter of 2011, compared with $4.0 million in revenue
for the first quarter of 2010. Revenue for the first quarter of 2010 reflects the receipt of the
milestone payment due from Zogenix, Inc. upon the first U.S. sale of SUMAVEL* DosePro* needle-free
delivery system for treatment of acute migraine and cluster headaches. Revenue for the first
quarter of 2011 reflects the quarterly royalty payment from Zogenix for SUMAVEL product sales.
Total operating expenses for the first quarter of 2011 were $2.6 million, compared with total
operating expenses of $4.1 million for the first quarter of 2010. The decrease in operating
expenses was primarily due to expense reduction efforts and lower expenses from the Company’s
inhaled liposomal ciprofloxacin clinical trials. The Company’s net loss for the first quarter of
2011 was $2.4 million, or $0.01 per share, compared with a net loss of $0.2 million, or $0.00 per
share, for the same period in 2010.
As of March 31, 2011, cash, cash equivalents and short-term investments totaled $3.1 million.
Recent Highlights
| • | Dr. Paul Bruinenberg, the Company’s Senior Medical Director, will be presenting a poster at the American Thoracic Society’s 2011 ATS International Conference in Denver, Colorado on May 17, 2011. The poster title is “Inhaled Liposomal Ciprofloxacin Significantly Reduces Sputum Pseudomonas Aeruginosa (PA) Density and Increases Time to First Exacerbation in a 168 day Placebo Controlled Study in Non-Cystic Fibrosis Bronchiectasis” and will present results from the Company’s ORBIT-2 clinical trial. | ||
| • | The Company will be presenting a poster at the 34th European Cystic Fibrosis Conference in Hamburg, Germany. The poster title is “Safety, Tolerability and Pharmacokinetics of Novel Liposomal Ciprofloxacin Formulations for Inhalation in Healthy Volunteers and Non-Cystic Fibrosis Bronchiectasis Patients” and will be available for viewing from June 8-June 11, 2011. | ||
| • | The Company received Notices of Allowance from the U.S. Patent and Trademark Office for the Company’s trademark applications for Lipoquin™ and Pulmaquin™ to be used as marks for ARD-3100 and ARD-3150, respectively. |
“We continue to make focused clinical and regulatory progress with our inhaled liposomal
ciprofloxacin treatments ARD-3100 and ARD-3150, now known as Lipoquin™ and Pulmaquin™, and are
projecting to report the results from the ORBIT-1 Phase 2b study in non-cystic fibrosis
bronchiectasis later in the second quarter of 2011. We are also actively engaged in discussions
with potential partners to move the inhaled liposomal ciprofloxacin program forward into Phase 3,”
said Igor Gonda, CEO and President of Aradigm.
About Aradigm
Aradigm is an emerging specialty pharmaceutical company focused on the development and
commercialization of a portfolio of drugs delivered by inhalation for the treatment of severe
respiratory diseases by pulmonologists. The Company has product candidates addressing the treatment
of bronchiectasis, cystic fibrosis, inhaled bioterrorism infections and smoking cessation.
More information about Aradigm can be found at www.aradigm.com.
Forward-Looking Statements
Except for the historical information contained herein, this news release contains forward-looking
statements that involve risk and uncertainties, including the timing and results of clinical trials
and the payment of royalties, as well as the other risks detailed from time to time in the
Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual
Report on Form 10-K for the year ended December 31, 2010 filed with the SEC on March 25, 2011, and
the Company’s Quarterly Reports on Form 10-Q.
Aradigm and the Aradigm Logo are registered trademarks of Aradigm Corporation.
* Other names and brands may be claimed as the property of others.
SOURCE: Aradigm Corporation
Contact: Nancy Pecota, Chief Financial Officer, 510-265-8800
ARADIGM CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| Three months ended | ||||||||
| March 31, | ||||||||
| 2011 | 2010 | |||||||
Revenues |
$ | 182 | $ | 4,000 | ||||
Operating expenses: |
||||||||
Research and development |
1,480 | 2,837 | ||||||
General and administrative |
1,135 | 1,253 | ||||||
Restructuring and asset impairment |
10 | 13 | ||||||
Total operating expenses |
2,625 | 4,103 | ||||||
Loss from operations |
(2,443 | ) | (103 | ) | ||||
Interest income |
2 | 10 | ||||||
Interest expense |
(7 | ) | (109 | ) | ||||
Other income (expense), net |
1 | (2 | ) | |||||
Net loss |
$ | (2,447 | ) | $ | (204 | ) | ||
Basic and diluted net loss per common share |
$ | (0.01 | ) | $ | (0.00 | ) | ||
Shares used in computing basic and diluted net
loss per common share |
170,135 | 99,872 | ||||||
ARADIGM CORPORATION
CONDENSED BALANCE SHEETS
(In thousands)
CONDENSED BALANCE SHEETS
(In thousands)
| March 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (Unaudited) | * | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 2,591 | $ | 5,295 | ||||
Short-term investments |
501 | 251 | ||||||
Receivables |
75 | 180 | ||||||
Prepaid and other current assets |
181 | 180 | ||||||
Total current assets |
3,348 | 5,906 | ||||||
Property and equipment, net |
1,431 | 1,553 | ||||||
Notes receivable |
55 | 54 | ||||||
Other assets |
113 | 115 | ||||||
Total assets |
$ | 4,947 | $ | 7,628 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
190 | 257 | ||||||
Accrued clinical and cost of other studies |
514 | 993 | ||||||
Accrued compensation |
318 | 327 | ||||||
Facility lease exit obligation |
104 | 99 | ||||||
Other accrued liabilities |
585 | 450 | ||||||
Total current liabilities |
1,711 | 2,126 | ||||||
Deferred rent |
110 | 99 | ||||||
Facility lease exit obligation, non-current |
703 | 729 | ||||||
Other non-current liabilities |
75 | 75 | ||||||
Shareholders’ equity |
2,348 | 4,599 | ||||||
Total liabilities and shareholders’ equity |
$ | 4,947 | $ | 7,628 | ||||
* The balance sheet at December 31, 2010 has been derived from the audited financial statements at
that date.
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