ARIAD Reports Fourth Quarter and Year-End 2006 Results and Provides Update On AP23573 Partnering.Company Announces Equity Financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. Commitment CAMBRIDGE, Mass. -- ARIAD ARIAD Allison Research Index of Art and Design Pharmaceuticals, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ARIA) today announced consolidated financial results for the quarter and the year ended December 31, 2006. The Company also announced that it has secured an equity financing commitment from Azimuth azimuth (ăz`əməth), in astronomy, one coordinate in the altazimuth coordinate system. It is the angular distance of a body measured westward along the celestial horizon from the observer's south point. Opportunity Ltd. for up to $50 million of the Company's common stock, which the Company may utilize from time to time over the next 18 months. "We are currently negotiating detailed terms with multiple pharmaceutical companies for a partnership to develop and commercialize AP23573 in a broad range of oncology indications. We expect to complete the partnership agreement by early second quarter 2007," said Harvey J. Berger, M.D., chairman and chief executive officer. "The equity financing commitment from Azimuth provides us with additional control and financial flexibility to ensure that we have the resources to further our partnering and product development objectives. We will provide further comments at our Investor & Analyst Day later this morning." Equity Financing Commitment The Company has entered into a common stock purchase agreement with Azimuth Opportunity, Ltd., which provides for up to $50 million in equity financing, pursuant to which, during the 18-month term of the commitment, the Company may sell from time to time, in its sole discretion, registered shares of its common stock to Azimuth at a discount to the prevailing market price determined in accordance with the purchase agreement. The Company will determine the timing and amount of any sales of its common stock, subject to certain conditions. Acqua Capital Management is an advisor to Azimuth Opportunity, Ltd. The Company intends to use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from any such sales of its common stock for its operations and other general corporate purposes, including development of its oncology product candidates. The shares of common stock are being offered pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission on January 30, 2007. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of these securities. There shall not be any sale of these securities in any state or jurisdiction where such an offer, solicitation or sale would be unlawful under the securities laws of such state or jurisdiction. Financial Highlights For the year ended December 31, 2006, the Company reported a net loss of $61.9 million, or $0.99 per share, as compared to $55.5 million, or $0.99 per share, for the year ended December 31, 2005. For the quarter ended December 31, 2006, the Company reported a net loss of $14.4 million, or $0.22 per share, compared to a net loss of $14.5 million, or $0.23 per share, for the same period in 2005. The increase in net loss for the year was due primarily to higher expenses resulting from the Company's NF-[eth][bar]B patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and the adoption of new accounting requirements related to stock options and other share-based payments, offset in part by lower research and development costs reflecting the later stages of certain clinical trials for the Company's lead product candidate, AP23573. For the year 2006, the Company reported cash used in operations of $56.0 million, in line with the guidance it had previously provided. At December 31, 2006, the Company reported cash, cash equivalents and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of $39.8 million. Upcoming Event and Webcast ARIAD will hold a live webcast of the Company's Investor & Analyst Day in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of today beginning at 8 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy . The live webcast can be accessed by visiting the investor relations Investor relations The process by which the corporation communicates with its investors. section of the Company's website at http://www.ariad.com/investor. The call can also be accessed by dialing (800) 295-4740 (domestic) or (617) 614-3925 (international) five minutes prior to the start time and providing the passcode 89801363. A replay of the call will be available on the ARIAD website approximately two hours after completion of the call and will be archived for 30 days. Upcoming Investor Meetings ARIAD management will present updated overviews of the Company's progress and plans at the following investor conferences: * Cowen & Company 26th Annual Healthcare Conference, Boston, March 12 to 15, 2007. * Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. 10th Annual Global Healthcare Conference, Miami, March 19 to 21, 2007. About ARIAD ARIAD is engaged in the discovery and development of breakthrough medicines to treat cancer by regulating cell signaling Cell signaling is part of a complex system of communication that governs basic cellular activities and coordinates cell actions. The ability of cells to perceive and correctly respond to their microenvironment is the basis of development, tissue repair, and immunity as well as with small molecules. The Company is developing a comprehensive approach to patients with cancer that addresses the greatest medical need - aggressive and advanced-stage cancers for which current treatments are inadequate. Medinol Ltd. also is developing stents and other medical devices that deliver ARIAD's lead cancer product candidate to prevent reblockage at sites of vascular injury following stent-assisted angioplasty angioplasty (ăn`jēōplăs'tē), any surgical repair of a blood vessel, especially balloon angioplasty or percutaneous transluminal coronary angioplasty, a treatment of coronary artery disease. . ARIAD has an exclusive license to pioneering technology and patents related to certain NF-[eth][bar]B treatment methods, and the discovery and development of drugs to regulate NF-[eth][bar]B cell-signaling activity, which may be useful in treating certain diseases. Additional information about ARIAD can be found on the web at http://www.ariad.com. Some of the matters discussed herein are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements are identified by the use of words such as "may", "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Such statements are based on management's expectations and are subject to certain factors, risks and uncertainties that may cause actual results, outcome of events, timing and performance to differ materially from those expressed or implied by such forward-looking statements. These risks include, but are not limited to, risks and uncertainties regarding the negotiation of detailed terms with multiple pharmaceutical companies for a partnership to develop and commercialize AP23573 for a broad range of oncology indications and our expected timing for completing such an agreement, the availability of the equity financing commitment from Azimuth Opportunity Ltd. to provide additional resources if needed and the expected use of proceeds from the sale of any shares to Azimuth, our ability to accurately estimate the timing and actual R&D expenses and other costs associated with the preclinical preclinical /pre·clin·i·cal/ (-klin´i-k'l) before a disease becomes clinically recognizable. pre·clin·i·cal adj. 1. and clinical development and manufacture of our product candidates, the adequacy of our capital resources and the availability of additional funding, risks and uncertainties regarding our ability to manufacture or have manufactured our product candidates on a commercial scale, risks and uncertainties regarding our ability to successfully recruit centers, enroll patients and conduct clinical studies of product candidates, risks and uncertainties that clinical trial results at any phase of development may be adverse or may not be predictive of future results or lead to regulatory approval of any of our or any partner's product candidates, risks and uncertainties of third-party intellectual property claims relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our and any partner's product candidates, risks and uncertainties related to the potential acquisition of or other strategic transaction regarding the minority stockholders' interests in our 80%-owned subsidiary, ARIAD Gene Therapeutics, Inc., and risks and uncertainties relating to regulatory oversight, the timing, scope, cost and outcome of legal and patent office proceedings concerning our NF-[eth][bar]B patent portfolio, future capital needs, key employees, dependence on collaborators and manufacturers, markets, economic conditions, products, services, prices, reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. rates, competition and other factors detailed in the Company's public filings with the Securities and Exchange Commission (SEC), including ARIAD's Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the period ended September 30, 2006, as updated from time to time in our subsequent periodic and current reports filed with the SEC. The information contained in this document is believed to be current as of the date of original issue. The Company does not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in the Company's expectations, except as required by law. [TABLE OMITTED] [TABLE OMITTED] |
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