Aradigm Announces Second Quarter 2013 Financial Results
Aradigm Announces Second Quarter 2013 Financial Results
HAYWARD, Calif.--(BUSINESS WIRE)-- Aradigm Corporation (OTC BB: ARDM.OB) (the "Company")today announced financial results for the second quarter and six months ended June 30, 2013.
Total revenue was approximately $0.2 million for both the second quarter of 2013 and the second quarter of 2012. Revenue in both quarters reflects the quarterly royalty payment from Zogenix for product sales of SUMAVEL® DosePro™ needle-free delivery system for treatment of acute migraine and cluster headaches.
The Company's net loss for the second quarter of 2013 was approximately $2.7 million, or $0.01 per share, compared with a net loss of approximately $1.8 million, or $0.01 per share, for the second quarter of 2012. Total operating expenses for the second quarter of 2013 were approximately $2.5 million, compared with total operating expenses of approximately $1.6 million for the second quarter of 2012. The increase in operating expenses was primarily due to higher R&D expenses from the 9 month inhalation study in dogs associated with the Company's inhaled ciprofloxacin program.
As of June 30, 2013, cash, cash equivalents and short-term investments totaled approximately $2.7 million.
Recent Highlights
May 2013: announced the signing of a license agreement with Grifols, S.A. for Pulmaquin® and Lipoquin® and associated stock sale. On May 20, 2013, the Company and Grifols and certain other investors entered into a Stock Purchase Agreement in which the Company agreed to sell a total of 209,774,558 shares of the Company's common stock to Grifols and an additional 124,193,546 shares of Common Stock to the investors, for a total sale of 333,968,104 shares of common stock for a purchase price of $0.124 per share. The aggregate gross consideration payable to the Company in the stock sale is approximately $41.4 million. In conjunction with signing the Stock Purchase Agreement, the Company and Grifols agreed to enter into a License and Collaboration Agreement at the closing of the Company Stock Sale. The License Agreement would exclusively license the Company's inhaled liposomal ciprofloxacin compounds for the indication of non-cystic fibrosis bronchiectasis and other indications to Grifols on a worldwide basis. Grifols would fund development expenses (capped at $65 million for the first indication), commercialize products from the program, pay up to $25 million in development milestones and also pay royalties on future commercial sales of products. The conditions to the closing of the transaction include obtaining shareholder approval of the transaction and securing a binding term sheet or agreement with a third party relating to the manufacture of products which may be commercialized under the License Agreement.
July 2013:shareholders approve the Grifols transaction at the Special Meeting of Shareholders. The Company held a special meeting of its shareholders on July 15, 2013 to (i) approve amendments to the Company's charter, including amendments necessary to increase the total number of shares of common stock authorized to be issued by the Company to at least 706,830,627 shares, including the 333,968,104 shares to be sold in the company stock sale and (ii) to approve the Company's closing of the Company Stock Sale and entering into the License Agreement, Governance Agreement and other agreements described in the Stock Purchase Agreement . Shareholders of the Company holding more than 50% of the outstanding shares of the Company's common stock voted in favor of these proposals at the special meeting.
August 2013: announced NIH grant for PNTM. The National Institutes of Health (NIH) awarded the Company a Small Business Initiative Research (SBIR) grant in the amount of approximately $278,000 to investigate the treatment of pulmonary non-tuberculous mycobacteria (PNTM) infections with Aradigm's inhaled liposomal ciprofloxacin products Pulmaquin and Lipoquin. The research program will be conducted in collaboration with Oregon State University, Corvalis.
August 2013: announced NIH grant for new methods of diagnoses of aspirations of gastrointestinal contents into the respiratory tract. The NIH awarded the Company an SBIR grant in the amount of approximately $260,000 to investigate the development and validation of tests for gastro-esophageal reflux with aspirations into the respiratory tract. The research program will be conducted in collaboration with scientists at the University of California, San Francisco (UCSF). The funding is for laboratory work and a human clinical trial to be conducted at UCSF.
About Aradigm
Aradigm is an emerging specialty pharmaceutical company focused on the development and commercialization of drugs delivered by inhalation for the prevention and treatment of severe respiratory diseases by pulmonologists. The Company has product candidates addressing the treatment of bronchiectasis, cystic fibrosis, inhalation tularemia and anthrax infections, and prevention of respiratory and other diseases in tobacco smokers through 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, including, but not limited to, statements regarding the Grifols transaction, the product development efforts for the inhaled ciprofloxacin program and continued receipt of royalties from Zogenix, Inc. These forward-looking statements involve risk and uncertainties, 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, 2012 filed with the SEC on March 27, 2013, and the Company's Quarterly Reports on Form 10-Q.
Aradigm, the Aradigm Logo, Pulmaquin and Lipoquin are registered trademarks of Aradigm Corporation.
ARADIGM CORPORATION | ||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Revenues | $ | 248 | $ | 240 | $ | 527 | $ | 522 | ||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 1,423 | 700 | 3,407 | 1,486 | ||||||||||||||||
General and administrative | 1,118 | 913 | 2,338 | 1,996 | ||||||||||||||||
Restructuring and asset impairment | 7 | 9 | 14 | 18 | ||||||||||||||||
Total operating expenses | 2,548 | 1,622 | 5,759 | 3,500 | ||||||||||||||||
Loss from operations | (2,300 | ) | (1,382 | ) | (5,232 | ) | (2,978 | ) | ||||||||||||
Interest income | 1 | 3 | 3 | 7 | ||||||||||||||||
Interest expense | (407 | ) | (382 | ) | (801 | ) | (752 | ) | ||||||||||||
Other income (expense), net | (4 | ) | - | (5 | ) | 2 | ||||||||||||||
Net loss | $ | (2,710 | ) | $ | (1,761 | ) | $ | (6,035 | ) | $ | (3,721 | ) | ||||||||
Change in unrealized losses on available-for-sale securities | - | - | - | (1 | ) | |||||||||||||||
Comprehensive loss | $ | (2,710 | ) | $ | (1,761 | ) | $ | (6,035 | ) | $ | (3,722 | ) | ||||||||
Basic and diluted net loss per common share | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | ||||||||
Shares used in computing basic and diluted net loss per common share | 250,417 | 198,406 | 250,180 | 198,166 | ||||||||||||||||
ARADIGM CORPORATION | ||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
(In thousands) | ||||||||||
June 30, | December 31, | |||||||||
2013 | 2012 | |||||||||
(Unaudited) | * | |||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 1,693 | $ | 7,414 | ||||||
Short-term investments | 1,011 | 203 | ||||||||
Receivables | 59 | 41 | ||||||||
Prepaid and other current assets | 220 | 106 | ||||||||
Total current assets | 2,983 | 7,764 | ||||||||
Property and equipment, net | 549 | 727 | ||||||||
Other assets | 420 | 475 | ||||||||
Total assets | $ | 3,952 | $ | 8,966 | ||||||
LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 798 | $ | 330 | ||||||
Accrued clinical and cost of other studies | 234 | 500 | ||||||||
Accrued compensation | 297 | 184 | ||||||||
Facility lease exit obligation | 155 | 144 | ||||||||
Other accrued liabilities | 425 | 127 | ||||||||
Total current liabilities | 1,909 | 1,285 | ||||||||
Deferred rent | 144 | 144 | ||||||||
Facility lease exit obligation, non-current | 390 | 465 | ||||||||
Note payable, net of discount and accrued interest | 8,742 | 8,513 | ||||||||
Shareholders' deficit | (7,233 | ) | (1,441 | ) | ||||||
Total liabilities and shareholders' deficit | $ | 3,952 | $ | 8,966 | ||||||
* The balance sheet at December 31, 2012 has been derived from the audited financial statements at that date. | ||||||||||
Aradigm Corporation
Nancy Pecota, 510-265-8800
Chief Financial Officer
KEYWORDS: United States North America California
INDUSTRY KEYWORDS:
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