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Attention Business/Financial Editors
Cardiome Reports 2009 Results
NASDAQ: CRME TSX: COM
VANCOUVER, March 9 /CNW/ - Cardiome Pharma Corp. (NASDAQ: CRME / TSX:
COM) today reported financial results for the fourth quarter and year ended
December 31, 2009. Amounts, unless specified otherwise, are expressed in
Canadian dollars and in accordance with Canadian Generally Accepted Accounting
Principles (Canadian GAAP). At close of business on December 31, 2009, the
exchange rate was CAD$1.00=US$0.9515.
Summary Results for the Fourth Quarter
Net income for the fourth quarter of 2009 (Q4-2009) was $12.6 million
($0.20 per common share), compared to a net loss of $8.3 million ($0.13 per
common share) for the fourth quarter of 2008 (Q4-2008). The net income in
Q4-2009 reflects recognition of revenue from our collaborative partner, Merck
& Co., Inc., in the quarter, and lower research and development expenditures
for Q4-2009 compared with Q4-2008.
Summary Results for Fiscal 2009
We recorded a net loss of $1.3 million ($0.02 per common share) for the
year ended December 31, 2009, compared to a net loss of $60.4 million ($0.95
per common share) for the year ended December 31, 2008. The decrease in net
loss for the year was largely due to the revenue recognized from the upfront
payment of U.S.$60.0 million, the milestone payment of U.S.$15.0 million and a
U.S.$7.0 million payment for shipment of clinical supplies from our
collaborative partner, Merck & Co., Inc. Decreased research and development
expenditures related to vernakalant (oral) in the current fiscal period due to
the completion of the Phase 2b trial in 2008 also contributed to the decrease
in net loss for fiscal 2009. This was partially offset by a foreign exchange
loss on translation of U.S. denominated net monetary assets into Canadian
dollars for reporting purposes at year end.
Total revenue for fiscal 2009 was $54.7 million, an increase of $53.1
million from $1.6 million in fiscal 2008.
Research and development expenditures were $30.5 million for fiscal 2009,
compared to $49.2 million for fiscal 2008. General and administration
expenditures for fiscal 2009 were $17.0 million compared to $17.2 million for
fiscal 2008. Amortization was $3.3 million for fiscal 2009 compared to $3.8
million for fiscal 2008. Interest and other income was $0.3 million for fiscal
2009 and $0.6 million for fiscal 2008. Foreign exchange loss was $5.4 million
for fiscal 2009 compared to a foreign exchange gain of $8.2 million for fiscal
2008.
Stock-based compensation, a non-cash item included in operating expenses,
increased to $3.8 million for fiscal 2009, as compared to $3.1 million for
fiscal 2008.
Liquidity and Outstanding Share Capital
At December 31, 2009, the Company had cash and cash equivalents of $49.7
million. As of March 8, 2010, the Company had 60,516,911 common shares issued
and outstanding and 6,329,579 common shares issuable upon the exercise of
outstanding stock options at a weighted-average exercise price of $7.45 per
share.
Adoption of United States Generally Accepted Accounting Principles (U.S.
GAAP)
In February 2008, the Canadian Accounting Standards Board confirmed the
transition from Canadian GAAP to International Financial Reporting Standards
("IFRS") for all publicly accountable entities no later than fiscal years
commencing on or after January 1, 2011. In the second half of 2009, management
undertook a detailed review of the Company's accounting standards and examined
the alternative available to Cardiome of filing its primary financial
statements in Canada and the U.S. using U.S. GAAP, as permitted by the
Canadian Securities Administrators' National Instrument 52-107, "Acceptable
Accounting Principles, Auditing Standards and Reporting Currency", given that
Cardiome is a Foreign Private Issuer in the United States.
As a result of this analysis, management recommended and the Board
determined that Cardiome should adopt U.S. GAAP as its primary basis of
financial reporting commencing January 1, 2010 on a retrospective basis.
Commencing in the first quarter of 2010, financial statements will be reported
in accordance with U.S. GAAP, and comparative financial information will be
revised to reflect the Company's results as if they had been historically
reported in accordance with U.S. GAAP.
The application of U.S. GAAP would result in material differences in the
Company's accounting policies related to patent costs, technology licenses
acquired from third-parties and stock-based compensation. Cardiome does not
expect the adoption of U.S. GAAP to require significant changes to the
Company's existing internal controls over financial reporting and disclosure
controls and procedures, or information and data systems.
Conference Call
Cardiome will hold a teleconference and webcast on Tuesday, March 9, 2010
at 4:30pm Eastern (1:30pm Pacific). To access the conference call, please dial
416-340-2217 or 866-696-5910 and reference conference 1276021. There will be a
separate dial-in line for analysts on which we will respond to questions at
the end of the call. The webcast can be accessed through Cardiome's website at
www.cardiome.com.
Webcast and telephone replays of the conference call will be available
approximately two hours after the completion of the call through April 9,
2010. Please dial 416-695-5800 or 800-408-3053 and enter code 2450762 followed
by the number sign. to access the replay.
About Cardiome Pharma Corp.
Cardiome Pharma Corp. is a product-focused drug development company
dedicated to the advancement and commercialization of novel treatments for
disorders of the heart and circulatory system. Cardiome is traded on the
NASDAQ Global Market (CRME) and the Toronto Stock Exchange (COM). For more
information, please visit our web site at www.cardiome.com.
Forward-Looking Statement Disclaimer
Certain statements in this press release contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995 or forward-looking information under applicable Canadian securities
legislation that may not be based on historical fact, including without
limitation statements containing the words "believe", "may", "plan", "will",
"estimate", "continue", "anticipate", "intend", "expect" and similar
expressions. Such forward-looking statements or information involve known and
unknown risks, uncertainties and other factors that may cause our actual
results, events or developments, or industry results, to be materially
different from any future results, events or developments expressed or implied
by such forward-looking statements or information. Such factors include, among
others, our stage of development, lack of product revenues, additional capital
requirements, risk associated with the completion of clinical trials and
obtaining regulatory approval to market our products, the ability to protect
our intellectual property, dependence on collaborative partners and the
prospects for negotiating additional corporate collaborations or licensing
arrangements and their timing. Specifically, certain risks and uncertainties
that could cause such actual events or results expressed or implied by such
forward-looking statements and information to differ materially from any
future events or results expressed or implied by such statements and
information include, but are not limited to, the risks and uncertainties that:
we may not be able to successfully develop and obtain regulatory approval for
vernakalant (iv) or vernakalant (oral) in the treatment of atrial fibrillation
or any other current or future products in our targeted indications; our
future operating results are uncertain and likely to fluctuate; we may not be
able to raise additional capital; we may not be successful in establishing
additional corporate collaborations or licensing arrangements; we may not be
able to establish marketing and sales capabilities and the costs of launching
our products may be greater than anticipated; we rely on third parties for the
continued supply and manufacture of vernakalant (iv) and vernakalant (oral)
and we have no experience in commercial manufacturing; we may face unknown
risks related to intellectual property matters; we face increased competition
from pharmaceutical and biotechnology companies; and other factors as
described in detail in our filings with the Securities and Exchange Commission
available at www.sec.gov and the Canadian securities regulatory authorities at
www.sedar.com. Given these risks and uncertainties, you are cautioned not to
place undue reliance on such forward-looking statements and information, which
are qualified in their entirety by this cautionary statement. All
forward-looking statements and information made herein are based on our
current expectations and we undertake no obligation to revise or update such
forward-looking statements and information to reflect subsequent events or
circumstances, except as required by law.
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/For further information: Cardiome Investor Relations, (604) 676-6993 or
Toll Free: 1-800-330-9928, Email: ir@cardiome.com/
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