Replidyne Announces Second Quarter 2008 Results From Operations
05 Agosto 2008 - 10:15PM
PR Newswire (US)
LOUISVILLE, Colo., Aug. 5 /PRNewswire-FirstCall/ -- Replidyne, Inc.
(NASDAQ:RDYN) today announced its financial results for the second
quarter and six months ended June 30, 2008. Replidyne reported a
net loss of $18.7 million for the quarter ended June 30, 2008, or a
net loss per basic and diluted common share of $0.69 per share,
compared to net income of $45.5 million, or $1.71 per basic common
share or $1.65 per common share on a fully diluted basis, for the
second quarter ended June 30, 2007. Replidyne reported a net loss
of $27.7 million for the six months ended June 30, 2008, or a net
loss per basic and diluted common share of $1.02 per share,
compared to net income of $36.9 million, or $1.39 per basic common
share or $1.34 per common share on a fully diluted basis, for the
six months ended June 30, 2007. Net income for the second quarter
and six months ended June 30, 2007 was due to revenue recognized
upon termination of the Company's former commercialization and
collaboration agreement for faropenem medoxomil (faropenem) with
Forest Laboratories that ended in May 2007 resulting in the
one-time recognition of previously deferred revenue. Cash, cash
equivalents and short-term investments at June 30, 2008 totaled
$64.7 million. "This second quarter we have taken several direct
actions to structure our operations to conserve our cash position,"
said Kenneth J. Collins, Replidyne's President and CEO. "These
actions have included the difficult decisions to return the
faropenem license to the licensor, conclude our development efforts
on the faropenem program and restructure our workforce. We believe
these actions were important steps in our effort to conclude our
ongoing strategic alternatives process." During the second quarter
of 2008, Replidyne announced that it had decided to terminate its
license agreement with Asubio Pharma Co., Ltd. (Asubio Pharma) for
faropenem. In conjunction with this decision, Replidyne also
announced that it had terminated its supply agreement with Asubio
Pharma and Nippon Soda Co., Ltd. (Nippon Soda) for production of
faropenem. As a result, the Company recorded research and
development expense of $4.2 million in the quarter, comprising a
license termination fee of $3.6 million to Asubio Pharma and
reimbursement of engineering costs of $0.6 million to Nippon Soda
in accordance with the terms of the agreements. Replidyne also paid
Nippon Soda $0.9 million for delay compensation under the supply
agreement, which had been recorded in 2007. In April 2008,
Replidyne announced it had discontinued enrollment in a
placebo-controlled phase III clinical trial testing faropenem in
patients with acute exacerbation of chronic bronchitis (AECB) and
restructured its operations. In June 2008, Replidyne further
restructured its operations. As a result of these actions the
Company has reduced its headcount by 23 employees and incurred
approximately $2.5 million of related expense, comprising $2.1
million of employee severance expenses and $0.4 million of expenses
related to closure of its facility in Milford, Connecticut.
Research and development expenses in the second quarter of 2008
were $14.4 million compared to $8.4 million in the corresponding
quarter of 2007. Faropenem related expense in the quarter totaled
$10.5 including $4.2 million for the termination of the faropenem
license with Asubio Pharma and related reimbursement of engineering
costs to Nippon Soda and costs for patient monitoring and data base
analysis required for the Phase III study testing faropenem in
patients with AECB that was discontinued in April 2008. Replidyne
will incur further expense related to this clinical trial to
complete required patient monitoring and data base analysis until
the final clinical report is filed with the U.S. Food and Drug
Administration, which is expected during the third quarter of 2008.
Also related to faropenem, Replidyne recorded $2.7 million of
research and development expense related to future decontamination
of the MEDA Manufacturing GmbH (MEDA Manufacturing) facility in
Germany that had previously manufactured 300 mg tablets of
faropenem based on MEDA Manufacturing's communicated intention to
decontaminate the facility. Replidyne believes that following
receipt of documented decontamination expenses from MEDA
Manufacturing these expenses are to be reimbursed by Forest
Laboratories under the terms of its former collaboration agreement.
Additionally, research and development expense included increased
costs for preclinical activities associated with Replidyne's
discovery research programs, primarily the C. difficile and DNA
replication inhibition programs, offset by decreased expense
related to the REP8839 program that was suspended in December 2007.
Sales, general and administrative expenses for the second quarter
of 2008 were $4.7 million compared to $3.3 million in the second
quarter of 2007. Replidyne recorded $1.7 million in the second
quarter of 2008 as the estimate of the outcome, within a range of
possible outcomes, from its pending arbitration with MEDA
Manufacturing. This increase was partially offset by decreases in
expenses following restructuring actions implemented in the fourth
quarter of 2007 to reduce commercial and general and administrative
headcount. Investment income and other net for the second quarter
of 2008 was $0.4 million compared to $1.5 million for the second
quarter of 2007, primarily reflecting lower cash balances available
for investment in the 2008 period. Replidyne did not report any
revenue in the second quarter of 2008. Revenue for the second
quarter of 2007 was $55.6 million. Under a February 2006
commercialization and collaboration agreement with Forest
Laboratories that terminated on May 7, 2007, Replidyne received
non-refundable upfront and milestone payments totaling $60 million
that were being recognized as revenue on a straight-line basis over
approximately 15 years in accordance with Replidyne's revenue
recognition policy. Upon termination, the balance of unamortized
upfront and milestone payments of $55.2 million was fully
recognized as revenue in the second quarter of 2007. In addition,
during the second quarter of 2007 the Company recognized $0.4
million in contract revenue for funded activity through May 7, 2007
under the agreement. About Replidyne, Inc. Replidyne is a
biopharmaceutical company focused on discovering, developing, and
in-licensing innovative anti-infective products. Replidyne's lead
program is an investigational antibacterial agent REP3123 that
targets Gram-positive Clostridium difficile (C. difficile) bacteria
and C. difficile Infection (CDI). Replidyne is pursuing the
development of other novel anti-infective programs based on its DNA
replication inhibition technology and its in-house discovery
research. The Company's operating strategy is directed to pursuing
strategic alternatives that include the merger or acquisition of
some or all of its assets, and could reduce or change its current
focus on the development of anti-infective product candidates. Safe
Harbor This press release contains plans, intentions, objectives,
estimates and expectations that constitute forward-looking
statements about Replidyne, Inc. that involve significant risks and
uncertainties. Actual results could differ materially from those
discussed due to a number of factors including, the outcome of the
Company's strategic alternatives process; resolution by the Company
of the matters raised in the Warning Letter received from the FDA
in January 2008; the success and timing of pre-clinical studies and
clinical trials; the Company's ability to obtain and maintain
regulatory approval of product candidates and the labeling under
any approval that may be obtained; plans to develop and
commercialize product candidates; the loss of key scientific or
management personnel; the size and growth of the potential markets
for the Company's product candidates and the Company's ability to
serve those markets; regulatory developments in the U.S. and
foreign countries; the rate and degree of market acceptance of any
future products; the accuracy of Company estimates regarding
expenses, future revenues and capital requirements; the Company's
ability to obtain and maintain intellectual property protection for
our product candidates; the success of competing drugs that are or
become available; and the performance of third party manufacturers.
These and additional risks and uncertainties are described more
fully in the Company's most recent Form 10-K filed with the SEC
under the Securities Exchange Act of 1934. Copies of filings made
with the SEC are available through the SEC's electronic data
gathering analysis and retrieval system (EDGAR) at
http://www.sec.gov/. All forward-looking statements made in the
press release are made as of the date hereof and the Company
assumes no obligation to update the forward-looking statements in
the document. REPLIDYNE, INC. CONDENSED BALANCE SHEETS (In
thousands) (Unaudited) June 30, December 31, 2008 2007 ASSETS
Current assets: Cash and cash equivalents $40,746 $43,969
Short-term investments 23,970 46,297 Prepaid expenses and other
current assets 1,177 2,429 Total current assets 65,893 92,695
Property and equipment, net 1,105 1,905 Other assets 80 90 Total
assets $67,078 $94,690 LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable and accrued expenses $12,201 $12,255
Total current liabilities 12,201 12,255 Other long-term liabilities
- 31 Total liabilities 12,201 12,286 Commitments and contingencies
Stockholders' equity 54,877 82,404 Total liabilities and
stockholders' equity $67,078 $94,690 REPLIDYNE, INC. CONDENSED
STATEMENTS OF OPERATIONS (In thousands, except per share amounts)
(Unaudited) Three Months Ended June 30, Six Months Ended June 30,
2008 2007 2008 2007 Revenue $- $55,647 $- $58,571 Costs and
expenses: Research and development 14,444 8,364 22,062 17,811
Sales, general and administrative 4,666 3,280 6,619 6,815 Total
costs and expenses 19,110 11,644 28,681 24,626 Income (loss) from
operations (19,110) 44,003 (28,681) 33,945 Investment income and
other, net 380 1,487 992 2,993 Net income (loss) $(18,730) $45,490
$(27,689) $36,938 Net income (loss) per share - basic $(0.69) $1.71
$(1.02) $1.39 Net income (loss) per share - diluted $(0.69) $1.65
$(1.02) $1.34 Weighted average common shares outstanding - basic
27,029 26,677 27,022 26,649 Weighted average common shares
outstanding - diluted 27,029 27,651 27,022 27,612 DATASOURCE:
Replidyne, Inc. CONTACT: Mark Smith, Chief Financial Officer of
Replidyne, +1-303-996-5535 Web site: http://www.replidyne.com/
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