Cardiome Reports Second Quarter Results.Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--July 31, 2002 Cardiome Pharma Corp. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :COM (1) (Computer Output Microfilm) Creating microfilm or microfiche from the computer. A COM machine receives print-image output from the computer either online or via tape or disk and creates a film image of each page. .TO) (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :COMRF) (the "Company" or "Cardiome") reported today financial results for the quarter ended May 31, 2002. For the quarter ended May 31, 2002, the Company recorded a net loss of $4,062,499 ($0.15 per common share) compared to a net loss of $2,596,191 ($0.25 per common share) for the same quarter in the preceding fiscal year ("fiscal 2001"). Research and development expenditures increased to $2,522,742 for the quarter ended May 31, 2002 as compared to $2,154,134 in the same quarter in fiscal 2001. The increase in operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. was primarily due to the increased pre-clinical and clinical expenditures in the Company's research and development programs as well as increased business development, merger and acquisition, and investor relations Investor relations The process by which the corporation communicates with its investors. activities. "I am proud of our accomplishments as an organisation this quarter. We have demonstrated that we can attract significant financial resources and experienced senior management," said Bob Rieder, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cardiome. "In the coming quarters we will demonstrate that we can quickly advance our products through clinical development towards partnering and commercialisation." The Company's activities during the quarter ended May 31, 2002 were financed primarily by its working capital carried forward from the preceding fiscal year and 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). collected from a public offering of units completed in March 2002. At May 31, 2002, the Company had working capital of $23,639,009 as compared to $3,523,091 at November 30, 2001. The Company had available cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. , comprised of cash, cash equivalents and short-term investments, of $24,804,269 at May 31, 2002 as compared to $4,183,580 at November 30, 2001. On March 8, 2002, the Company completed an acquisition of a new subsidiary, Paralex, Inc. ("Paralex"), providing the Company with certain intellectual property rights relating to the use of oxypurinol and other related compounds called xanthine oxidase xanthine oxidase /xan·thine ox·i·dase/ (ok´si-das) a flavoprotein enzyme that catalyzes the oxidation of hypoxanthine to xanthine and then to uric acid, the final steps in the degradation of purines; deficiency, an autosomal recessive inhibitors for treatment of congestive heart failure congestive heart failure, inability of the heart to expel sufficient blood to keep pace with the metabolic demands of the body. In the healthy individual the heart can tolerate large increases of workload for a considerable length of time. and other cardiovascular diseases. The Company issued 8,203,396 common shares in exchange for all of the outstanding shares of Paralex. In connection with and as part of the acquisition, effective March 8, 2002, Cardiome continued under the Canada Business Corporation Act and consolidated its shares on a four for one basis. All share capital and per share amounts included herein have been retroactively restated to reflect the share consolidation. About Cardiome Pharma Corp. Cardiome Pharma Corp. is a product-focused cardiovascular drug development company. Cardiome has four drug programs focused on arrhythmias and congestive heart failure (CHF CHF In currencies, this is the abbreviation for the Swiss Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ), as well as a program applying its congestive heart failure drug to symptomatic hyperuricemia hyperuricemia /hy·per·uri·ce·mia/ (-u?ri-se´me-ah) uricemia; an excess of uric acid in the blood.hyperurice´mic hy·per·u·ri·ce·mi·a n. An unusually high concentration of uric acid in the blood. (gout gout, condition that manifests itself as recurrent attacks of acute arthritis, which may become chronic and deforming. It results from deposits of uric acid crystals in connective tissue or joints. ). Cardiome's lead antiarrhythmic antiarrhythmic /an·ti·ar·rhyth·mic/ (-ah-rith´mik) 1. preventing or alleviating cardiac arrhythmias. 2. an agent that so acts. an·ti·ar·rhyth·mic adj. product, RSD RSD Reflex sympathetic dystrophy, see there 1235, is an acute-use, intravenous administration treatment for atrial fibrillation atrial fibrillation Irregular rhythm (arrhythmia) of contraction of the atria (upper heart chambers). The most common major arrhythmia, it may result as a consequence of increased fibrous tissue in the aging heart, of heart disease, or in association with severe infection. . Dosing in a Phase II efficacy clinical trial has just been completed. RSD1122, intended for acute and chronic treatment of ventricular arrhythmia ventricular arrhythmia An abnormal, usually rapid, heart rhythm that arises in a ventricle; VAs are often life threatening and 2º to myocardial infarction Examples V tach, V fib , and Kv1.5, focused on the chronic treatment of atrial fibrillation, are both in pre-clinical development. Cardiome's lead product in the CHF area is oxypurinol, a novel therapy in treating the disease. A Phase II is planned for the second half of 2002. Cardiome also plans to develop oxypurinol as a treatment of gout for patients who are intolerant to allopurinol allopurinol /al·lo·pur·i·nol/ (al?o-pur´i-nol) an isomer of hypoxanthine, capable of inhibiting xanthine oxidase and thus of reducing serum and urinary levels of uric acid; used in prophylaxis and treatment of hyperuricemia and uric acid , the first-line therapy for gout. Cardiome has more than two years of cash at existing spending levels and is traded on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (COM). Further information about Cardiome can be found at www.cardiome.com.
Selected Financial Highlights (Canadian dollars) (1,2,3)
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As at
May 31, November 30,
Balance Sheets 2002 2001
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Cash and cash equivalents $ 874,560 $1,381,750
Short-term investments 23,929,709 2,801,830
Accounts receivable and other 690,535 247,211
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Total current assets 25,494,804 4,430,791
Capital assets 424,920 302,583
Other assets 31,023,611 1,536,249
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Total assets $56,943,335 $6,269,623
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Current liabilities $ 1,831,372 $ 907,700
Current portion of obligations under
capital leases 24,423 -
Obligations under capital leases 49,074 -
Deferred revenue 1,272,764 1,348,374
Shareholders' equity 53,765,702 4,013,549
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Total liabilities and shareholders'
equity $56,943,335 $6,269,623
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For the Three Months Ended
Statements of Loss and Deficit May 31, 2002 May 31, 2001
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Revenue
Research collaborative and licensing $37,805 $53,162
Grant income 15,000 24,006
Interest and other income 206,498 100,322
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259,303 177,490
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Expenses
Research and development 2,522,742 2,154,134
General and administration 1,055,272 478,679
Amortization 843,788 140,868
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4,421,802 2,773,681
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Loss before income taxes $(4,162,499) $(2,596,191)
Future income tax recovery 100,000 -
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Net loss for the period (4,062,499) (2,596,191)
Deficit, beginning of period (32,157,941) (24,156,668)
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Deficit, end of period $(36,220,440) $(26,752,859)
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Net loss per common share $(0.15) $(0.25)
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1 Condensed from the Company's unaudited financial statements.
2 Certain comparative figures have been reclassified to conform to the
financial presentation used in the current reporting period.
3 Net loss per common share is based on the weighted average number of
common shares outstanding during the period.
Forward-Looking Statement Disclaimer Statements contained in this news release relating to future results, events and expectation are forward-looking statements within the meaning of the United States 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. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, those described in the Company's annual report on Form 20-F. The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. ON BEHALF OF THE BOARD Robert Rieder |
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