Aradigm Corporation (OTC BB: ARDM.OB) (the “Company”) today announced financial results for the second quarter and six months ended June 30, 2012.
Total revenue was approximately $0.2 million for both the second quarter of 2012 and the second quarter of 2011. Revenue in both quarters reflects the quarterly royalty payment from Zogenix for product sales of SUMAVEL® DosePro™ needle-free delivery system for treatment of acute migraine and cluster headaches.
The Company’s net loss for the second quarter of 2012 was approximately $1.8 million, or $0.01 per share, compared with a net loss of approximately $2.9 million, or $0.02 per share, for the second quarter of 2011. Total operating expenses for the second quarter of 2012 were approximately $1.6 million, compared with total operating expenses of approximately $3.0 million for the second quarter of 2011. The decrease in operating expenses was primarily due to lower clinical costs for the inhaled ciprofloxacin program versus the prior year period.
As of June 30, 2012, cash, cash equivalents and short-term investments totaled approximately $5.6 million.
About Aradigm
Aradigm is an emerging specialty pharmaceutical company focused on the development and commercialization of drugs delivered by inhalation for the prevention and treatment of severe respiratory diseases by pulmonologists. The Company has product candidates addressing the treatment of bronchiectasis, cystic fibrosis, inhalation tularemia and anthrax infections, and prevention of respiratory and other diseases in tobacco smokers through smoking cessation.
More information about Aradigm can be found at www.aradigm.com.
Forward-Looking Statements
Except for the historical information contained herein, this news release contains forward-looking statements, including, but not limited to, statements regarding the product development efforts for the inhaled ciprofloxacin program and continued receipt of royalties from Zogenix, Inc. These forward-looking statements involve risk and uncertainties, as well as the other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K for the year ended December 31, 2011 filed with the SEC on March 28, 2012, and the Company’s Quarterly Reports on Form 10-Q.
Aradigm and the Aradigm Logo are registered trademarks of Aradigm Corporation.
ARADIGM CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | |||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Revenues | $ | 240 | $ | 184 | $ | 522 | $ | 366 | |||||||
| Operating expenses: | |||||||||||||||
| Research and development | 700 | 1,584 | 1,486 | 3,064 | |||||||||||
| General and administrative | 913 | 1,440 | 1,996 | 2,575 | |||||||||||
| Restructuring and asset impairment | 9 | 10 | 18 | 20 | |||||||||||
| Total operating expenses | 1,622 | 3,034 | 3,500 | 5,659 | |||||||||||
| Loss from operations | (1,382 | ) | (2,850 | ) | (2,978 | ) | (5,293 | ) | |||||||
| Interest income | 3 | 1 | 7 | 3 | |||||||||||
| Interest expense | (382 | ) | (46 | ) | (752 | ) | (53 | ) | |||||||
| Other income (expense), net | - | 1 | 2 | 2 | |||||||||||
| Net loss | $ | (1,761 | ) | $ | (2,894 | ) | $ | (3,721 | ) | $ | (5,341 | ) | |||
| Change in unrealized losses on available-for-sale securities | - | - | (1 | ) | - | ||||||||||
| Comprehensive loss | $ | (1761 | ) | $ | (2,894 | ) | $ | (3,722 | ) | $ | (5,341 | ) | |||
| Basic and diluted net loss per common share | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.03 | ) | |||
| Shares used in computing basic and diluted net loss per common share | 198,406 | 170,731 | 198,166 | 170,435 | |||||||||||
ARADIGM CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | ||||||||
| June 30, 2012 | December 31, 2011 | |||||||
| (Unaudited) | * | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,808 | $ | 2,148 | ||||
| Short-term investments | 1,794 | 6,516 | ||||||
| Receivables | 53 | 36 | ||||||
| Prepaid and other current assets | 212 | 161 | ||||||
| Total current assets | 5,867 | 8,861 | ||||||
| Property and equipment, net | 913 | 1,113 | ||||||
| Notes receivable | - | 29 | ||||||
| Other assets | 518 | 553 | ||||||
| Total assets | $ | 7,298 | $ | 10,556 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 195 | $ | 196 | ||||
| Accrued clinical and cost of other studies | 241 | 247 | ||||||
| Accrued compensation | 292 | 195 | ||||||
| Facility lease exit obligation | 132 | 120 | ||||||
| Other accrued liabilities | 78 | 86 | ||||||
| Total current liabilities | 938 | 844 | ||||||
| Deferred rent | 144 | 132 | ||||||
| Facility lease exit obligation, non-current | 545 | 609 | ||||||
| Other non-current liabilities | - | 75 | ||||||
| Note payable, net of discount and accrued interest | 8,387 | 8,207 | ||||||
| Shareholders' equity (deficit) | (2,716 | ) | 689 | |||||
| Total liabilities and shareholders' equity (deficit) | $ | 7,298 | $ | 10,556 | ||||
* The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date.
Nancy Pecota, 510-265-8800
Chief Financial Officer