Cardiome Pharma Corp. Reports Second Quarter 2016 Financial Results

Cardiome to conduct conference call and webcast today,
August 9, 2016 at 4:30pm Eastern (1:30pm Pacific)

NASDAQ: CRME TSX: COM

VANCOUVER, Aug. 9, 2016 /PRNewswire/ - Cardiome Pharma Corp. (NASDAQ: CRME / TSX: COM) today reported financial results for its second quarter ended June 30, 2016. Amounts, unless specified otherwise, are expressed in U.S. dollars and in accordance with generally accepted accounting principles used in the United States of America (U.S. GAAP).

Commenting on Cardiome's Q2, Dr. William Hunter, CEO, said "We believe that the 16% year-over-year revenue growth reported during the first half of 2016 positions Cardiome well to meet our goal of reporting strong annual growth during 2016 over 2015. We are also very pleased with our license of XYDALBA from Allergan plc that was announced during the quarter, and we anticipate our first commercial sales of XYDALBA before year-end with a larger commercial roll-out during 2017. BRINAVESS continues to grow as per our expectations and we are preparing for the start of Canadian commercial operations to launch both AGGRASTAT and BRINAVESS, which we expect to have in place during 2016. We are well on our way to executing our strategy of building a robust product portfolio consisting of stable revenue generating products coupled with proprietary high growth products, such as XYDALBA. We hope to add more products to our portfolio in the near-term that will shorten our path to profitability as we continue to be very active in business development activities. Subsequent to the quarter end, Cardiome completed a US$34.5 million equity financing. We believe that our cash on hand will be sufficient to sustain operations well into the future and until Cardiome becomes a profitable company."

Summary of Operations

Since the beginning of 2016 to date, Cardiome has:

  • Entered into an exclusive license agreement with Allergan plc for the rights to commercialize dalbavancin (branded DALVANCE®­­ in the U.S. and Canada, XYDALBATM in the rest of the world) in France, the United Kingdom, Germany, Belgium, Nordic nations, other European nations, various Middle Eastern nations, and Canada.
  • Completed an underwritten equity offering whereby it issued 11.5 million shares from treasury for gross proceeds of US$34.5 million.
  • Entered into a term loan agreement with CRG -managed funds for up to US$30 million. US$20 million has been drawn to date.
  • Extinguished the existing term loan with MidCap Financial LLC.
  • Entered into a distribution agreement with Chong Kun Dang to commercialize BRINAVESS in South Korea
  • Announced that the European Medicines Agency approved Cardiome's request for a Centralized Review pathway for TREVYENT
  • Announced a share purchase agreement with Lincoln Park Capital Fund, LLC
  • Filed a marketing authorization application for intravenous vernakalant in the Kingdom Of Saudi Arabia
  • Filed an Orphan Drug Application for oral vernakalant with the United States Food and Drug Administration
  • Filed a base shelf prospectus and registration statement
  • Announced the publication of an independent study comparing BRINAVESS to IBUTILIDE in patients with recent-onset atrial fibrillation

Summary Results

Cardiome recorded a net loss of $7.5 million (loss per share of $0.37) for the three months ended June 30, 2016, compared to a net loss of $7.4 million (loss per share of $0.43) for the three months ended June 30, 2015. On a year-to-date basis, Cardiome recorded a net loss of $8.7 million (loss per share of $0.43) for the six months ended June 30, 2016 compared to a net loss of $11.2 million (loss per share of $0.66) for the six months ended June 30, 2015. The decrease in net loss on a year-to-date basis was due primarily to an increase in revenue and a decrease in research and development ("R&D") expense.

Revenue for the three months ended June 30, 2016 was $5.9 million compared to revenue of $5.7 million for the three months ended June 30, 2015. Revenue for the six months ended June 30, 2016 and 2015 was $13.0 million and $11.2 million, respectively. The increase in revenue for the six months ended June 30, 2016 was driven by an increase in distributor sales.

Gross margin decreased to 71.4% and 76.1% for the three and six months ended June 30, 2016, respectively, compared to 79.9% and 78.8% for the three and six months ended June 30, 2015. The change in gross margin is primarily due to changes in customer mix.

Selling, general and administration ("SG&A") expense for the three months ended June 30, 2016 was $8.0 million compared to $8.4 million for the three months ended June 30, 2015. On a year-to-date basis, SG&A expense for the six months ended June 30, 2016 was $14.2 million compared to $14.7 million for the six months ended June 30, 2015. The decrease in SG&A expense in each period is primarily related to a decrease to Cardiome's stock-based compensation expense as a result of market fluctuations in Cardiome's share price.

R&D expense was nil for the three and six-month periods ended June 30, 2016 compared to R&D expense of $3.1 million for the three and six-month periods ended June 30, 2015. In June 2015, Cardiome made an upfront payment of $3.0 million to SteadyMed Therapeutics upon the execution of a license and supply agreement for TREVYENT®.

Interest expense was $0.4 million for the three months ended June 30, 2016, compared to $0.6 million for the three months ended June 30, 2015. On a year-to-date basis, interest expense was $0.9 million for the six months ended June 30, 2016 compared to $1.2 million for the six months ended June 30, 2015. The decrease was due to lower interest expense incurred on the Midcap long-term debt and deferred consideration.

On June 13, 2016, Cardiome extinguished its senior secured term loan facility with Midcap Financial LLC. As a result of the extinguishment, Cardiome incurred a loss of $1.4 million due to exit and prepayment fees and the write-off of unamortized debt issuance costs.

Liquidity and Outstanding Share Capital

At June 30, 2016, the company had cash and cash equivalents of $12.9 million. As of August 8, 2016, there were 31,875,819 common shares issued and outstanding, and 1,954,397 common shares issuable upon the exercise of outstanding stock options (of which 1,072,296 were exercisable) at a weighted average exercise price of CAD $5.93 per share, and 125,362 restricted share units outstanding.

Conference Call
Cardiome will hold a teleconference and webcast on August 9, 2016 at 4:30pm Eastern (1:30pm Pacific). To access the conference call, please dial 416-764-8688 or 888-390-0546 and use conference ID 36846848. The webcast can be accessed through Cardiome's website at www.cardiome.com or through the following link:

http://event.on24.com/r.htm?e=1231482&s=1&k=369EF8F5174E3E8FBA0B73393D28C3A5

Webcast and telephone replays of the conference call will be available approximately two hours after the completion of the call through August 16, 2016. Please dial 416-764-8677 or 888-390-0541 and enter code 846848 # to access the replay.

About Cardiome Pharma Corp.

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