CARLSBAD, Calif., May 8 /PRNewswire-FirstCall/ -- Ardea Biosciences, Inc. ("Ardea" or the "Company") today reported financial results for the first quarter ended March 31, 2007.
Ardea reported a net loss applicable to common stockholders of $3.4 million, or $0.37 per basic and diluted share, for the first quarter of 2007. This compares with a loss of $210,000, or $0.02 per share for the first quarter ended March 31, 2006. The difference between years reflects Ardea's re-start of operations.
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. pursuant to an Asset Purchase Agreement and hired a new senior management team.
On March 31, 2007, Ardea had a total of $45.3 million in cash, cash equivalents, and short-term investments and recorded liabilities of $1.8 million. Based on current projections, the Company expects cash, cash equivalents, and short-term investments on December 31, 2007 to be between $28 million and $32 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 11 million common equivalent shares were issued and outstanding on March 31, 2007, 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 March 31, 2007, approximately 12 million common equivalent shares would be outstanding on March 31, 2007.
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 our ability to achieve clinical proof-of-concept relatively quickly and cost-effectively in these disease areas. The Company's goal is to initiate clinical studies on three or more compounds this year. These compounds include RDEA806 and lead compounds from our 900 series, which are 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, and its 2007 year-end cash projection. 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 amounts) (Unaudited) Three Months Ended March 31, 2007 2006 Revenue $893 $- Operating expenses: Research and development (includes non-cash stock- based compensation of $28 and $0, respectively) $3,513 7 General and administrative (includes non-cash stock-based compensation of $141 and $135, respectively) 1,544 660 Total operating expenses 5,057 667 Operating loss (4,164) (667) Interest income 611 518 Other income (expense), net 184 (1) Net loss (3,369) (150) Non-cash dividends on Series A preferred stock (60) (60) Net loss applicable to common stockholders $(3,429) $(210) Basic and diluted net loss per share applicable to common stockholders $(0.37) $(0.02) Shares used to compute basic and diluted net loss per share applicable to common stockholders 9,373 9,298 Condensed Balance Sheet Data (In thousands) March 31, December 31, 2007 2006 Cash, cash equivalents and short-term investments $45,298 $48,669 Total assets $47,659 $50,240 Total stockholders' equity $45,861 $49,064
Ardea Biosciences, Inc.CONTACT: Chris Krueger, Chief Business Officer of Ardea Biosciences, Inc.,+1-760-602-9406
Web site: http://www.ardeabiosciences.com//
