CARLSBAD, Calif., April 2 /PRNewswire-FirstCall/ -- Ardea Biosciences, Inc. ("Ardea" or the "Company") today reported financial results for the fourth quarter and twelve months ended December 31, 2006.
Ardea reported a net loss applicable to common stockholders of $476,000, or $0.05 per basic and diluted share, for the fourth quarter of 2006. For the twelve months ended December 31, 2006, the loss applicable to common stockholders was $607,000, or $0.07 per basic and diluted share. This compares with a loss of $767,000, or $0.08 per share, and $3.4 million, or $0.37 per share, for the fourth quarter and full year ending December 31, 2005, respectively.
On December 21, 2006, Ardea acquired intellectual property and other assets related to three distinct pharmaceutical research and development programs from Valeant Research & Development, Inc. or Valeant, pursuant to an Asset Purchase Agreement, hired a new senior management team, including Barry D. Quart, Pharm.D., who replaced Denis Hickey as Chief Executive Officer, and changed its name from IntraBiotics Pharmaceuticals, Inc. to Ardea Biosciences, Inc.
Ardea is focused on the development of small-molecule drugs that address large pharmaceutical markets. We plan to source these development candidates from both our internal drug discovery programs and our continued in-licensing efforts. Our initial therapeutic areas of focus are viral diseases, cancer and inflammatory diseases. "We believe that we are well-positioned to create shareholder value through our development activities given the ability to achieve clinical proof-of-concept relatively quickly and cost-effectively in these disease categories. We continue to work diligently towards our goal of initiating clinical studies on three compounds this year. These include RDEA806 and our lead compound from our 900 series, both non-nucleoside reverse transcriptase inhibitors (NNRTIs) for the treatment of HIV, and RDEA119, a mitogen-activated ERK kinase (MEK) inhibitor for the treatment of cancer and inflammatory diseases," said Dr. Barry Quart, President and CEO of Ardea.
On December 31, 2006, Ardea had a total of $48.7 million in cash, cash equivalents, and short-term investments and recorded liabilities of $1.2 million. Based on current projections, the Company expects cash, cash equivalents, and short-term investments on December 31, 2007 to be between $28.0 million and $32.0 million. The Company expects its current cash resources to fund operations through 2008. These projections exclude the potential impact of any future business development activity.
Approximately 10.9 million common equivalent shares were issued and outstanding on December 31, 2006, including 1.6 million shares underlying outstanding convertible preferred stock. Assuming the net exercise of in-the-money warrants and options at the closing price of the Company's stock on December 31, 2006, approximately 11.7 million common equivalent shares would be outstanding on December 31, 2006.
As part of the purchase of assets from Valeant, Ardea received fixed assets valued at approximately $4.3 million and goodwill and intangible assets valued at approximately $800,000. For these assets, Ardea paid no upfront consideration and assumed no liabilities except for liabilities under certain contracts related to the assets. Under the agreement with Valeant, Ardea is obligated to make development-based milestone payments of up to an aggregate of $42.0 million for the acquired programs plus royalty payments based on net product sales that range in the mid-single-digits. In connection with the purchase, Ardea also agreed to perform certain research services for Valeant, for which the Company will receive quarterly payments totaling up to $3.5 million per year for two years (the second year at Valeant's option), and milestone payments of up to $1.0 million over that period.
About Ardea Biosciences, Inc.
Ardea is focused on the development of small-molecule drugs that address large pharmaceutical markets. We plan to source these development candidates from both our internal drug discovery programs and our continued in-licensing efforts. Our initial therapeutic areas of focus are viral diseases, cancer and inflammatory diseases. We believe that we are well-positioned to create shareholder value through our development activities given the ability to achieve clinical proof-of-concept relatively quickly and cost-effectively in these disease categories. The Company's goal is to initiate clinical studies on three compounds this year. These include RDEA806 and our lead compound from our 900 series, both non-nucleoside reverse transcriptase inhibitors (NNRTIs) for the treatment of HIV, and RDEA119, a mitogen-activated ERK kinase (MEK) inhibitor for the treatment of cancer and inflammatory diseases.
Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Such statements include, but are not limited to, statements regarding: Ardea's goals, its plan to source development candidates, its goal of initiating clinical studies on three compounds this year, its 2007 year-end cash projections, and potential proceeds from the research services agreement. Risks that contribute to the uncertain nature of the forward-looking statements include: risks related to the outcomes of preclinical and clinical trials, risks related to regulatory approvals, delays in commencement of preclinical and clinical tests, and costs associated with internal development and in-licensing activities. These and other risks and uncertainties are described more fully in Ardea's most recently filed SEC documents, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, under the headings "Risk Factors." All forward-looking statements contained in this press release speak only as of the date on which they were made. Ardea undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
Ardea Biosciences, Inc. (formerly IntraBiotics Pharmaceuticals, Inc.) Statements of Operations (In thousands, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, 2006 2005 2006 2005 Operating expenses: Research and Development $65 $- $72 $255 General and administrative 997 375 2,674 2,980 Restructuring charge - - - 648 Total operating expenses 1,062 375 2,746 3,883 Operating loss (1,062) (375) (2,746) (3,883) Interest income 646 459 2,377 1,502 Other income, (expense) - (2) 2 (1) Change in fair value on revaluation of warrants - (789) - (789) Net loss (416) (707) (367) (3,171) Non-cash dividends on Series A preferred stock (60) (60) (240) (240) Net loss applicable to common stockholders $(476) $(767) $(607) $(3,411) Basic and diluted net loss per share applicable to common stockholders $(0.05) $(0.08) $(0.07) $(0.37) Shares used to compute basic and diluted net loss per share applicable to common stockholders 9,358 9,272 9,326 9,134 Condensed Balance Sheet Data (In Thousands) December 31, December 31, 2006 2005 Cash, cash equivalents and short-term investments $48,669 $48,830 Total assets $50,240 $49,171 Total stockholders' equity $49,064 $48,820
Ardea Biosciences, Inc.CONTACT: Barry D. Quart, Pharm.D., President and Chief Executive Officerof Ardea Biosciences, Inc., +1-760-602-8422
Web site: http://www.ardeabiosciences.com//
