Exhibit 99.1
Optimer Pharmaceuticals Announces Fourth Quarter and Full Year 2006 Financial Results
SAN DIEGO, CA – March 28, 2007- Optimer Pharmaceuticals, Inc. (NASDAQ: OPTR), today announced financial results for the fourth quarter and year ended December 31, 2006. Optimer reported a net loss applicable to common stockholders in the fourth quarter and the full year ended December 31, 2006 of $4.1 million, or $1.56 per share, and $12.2 million, or $4.81 per share, respectively. This compares with a net loss applicable to common stockholders in the fourth quarter and the full year ended December 31, 2005 of $2.1 million, or $0.88 per share, and $7.7 million, or $3.22 per share, respectively. The increase in the net loss in 2006 over 2005 is primarily attributable to increased clinical development expenses for the Company’s two lead anti-infective product candidates, Difimicin and Prulifloxacin. The results for the year ended December 31, 2006 included approximately $553,000, or $0.22 per share, in employee stock-based compensation expense as a result of the adoption of FAS123(R). The net loss per share amounts do not reflect the conversion of all outstanding shares of the Company’s redeemable preferred stock into common stock that occurred upon the close of the Company’s initial public offering (IPO) in February 2007.
As of December 31, 2006, Optimer held cash, cash equivalents and short-term investments of $21.3 million. In addition, in February 2007, the Company received net proceeds of approximately $43.6 million in connection with the closing of the Company’s IPO. Thereafter, the Company paid $20.0 million to Par Pharmaceutical, Inc., (Par) in February 2007 to regain the rights to Difimicin in North America and Israel.
“In 2006, we achieved a number of major objectives including the initiation of a Phase 2b/3 trial of our lead product candidate, Difimicin and the initiation of two Phase 3 trials for Prulifloxacin,” said Michael Chang, President and CEO of Optimer Pharmaceuticals. “2007 is shaping up to be a very significant year in the Company’s history, with our initial public offering in February and our recent announcements that we had regained rights to Difimicin in North America and Israel from Par and that we had transitioned Difimicin into the Phase 3 portion of the clinical trial. We look forward to results from our first Phase 3 trial of Difimicin and our two Prulifloxacin Phase 3 clinical trials by the end of the year.”
Financial Results
Total revenues in the fourth quarter of 2006 were $86,000, compared to $696,000 in the fourth quarter of 2005. Total revenues for the year ended December 31, 2006 were $933,000, compared to $2.1 million for the year ended December 31, 2005. The decrease in revenues was primarily attributable to a decrease in research grant revenue and the conclusion of a development and license agreement.
Research and development expenses totaled $3.1 million in the fourth quarter of 2006, compared to $2.4 million in the fourth quarter of 2005. Research and development expenses totaled $10.5 million for the year ended December 31, 2006, compared to $7.0 million for the year ended December 31, 2005. The increase in 2006 research and development expense is primarily attributable to costs incurred on the Difimicin Phase 2b/3 and Prulifloxacin Phase 3 clinical trials which were initiated in May 2006 and July 2006, respectively.
General and administrative expenses totaled $1.2 million and $615,000 for the fourth quarters of 2006 and 2005, respectively. General and administrative expenses totaled $3.5 million and $2.8 million for the years ended December 31, 2006 and 2005, respectively. The increase in general and administrative expenses is primarily attributable to stock-based compensation expense.
Optimer Highlights
· In May 2006 Optimer initiated a North American Phase 2b/3 study of Difimicin for the treatment of Clostridium difficile-associated diarrhea (CDAD) the most common hospital-acquired diarrhea. In February 2007 Optimer regained North American rights to Difimicin from the Company’s former development partner, Par.
· In July 2006 Optimer initiated a Phase 3 clinical trial of Prulifloxacin, for the treatment of travelers’ diarrhea in the United States, Mexico and Peru. A second Prulifloxacin Phase 3 trial was initiated in December 2006 in India.
· Optimer priced its IPO on February 8, 2007 and began trading on The NASDAQ Global Market under the symbol “OPTR” on February 9, 2007. The IPO generated net proceeds to Optimer of $43.6 million from the sale of 7.0 million shares of common stock at $7.00 per share.
· In March 2007, Difimicin entered the Phase 3 portion of the Phase 2b/3 clinical trial when the U.S. Food and Drug Administration agreed with the recommendation of the independent Data Safety Monitoring Board to advance Difimicin into Phase 3 clinical studies.
Note Regarding Use of Non-GAAP Financial Measures
In addition to disclosing financial results calculated in accordance with generally accepted accounting principles (GAAP), this earnings release contains non-GAAP basic and diluted net loss per share attributable to common stockholders. The non-GAAP basic and diluted net loss applicable to common stockholders in the fourth quarter and the full year ended December 31, 2006 of $0.28 per share and $0.83 per share, respectively, compares with a non-GAAP basic and diluted net loss applicable to common stockholders in the fourth quarter and the full year ended December 31, 2005 of $0.15 per share, and $0.64 per share, respectively. The Company believes the presentation of the non-GAAP per share information provides meaningful supplemental information to both management and investors that is more indicative of the Company’s loss per share as a result of the Company’s IPO in February 2007. The non-GAAP basic and diluted net loss per share attributable to common stockholders is calculated by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period plus the weighted average number of common shares resulting from the assumed conversion of the outstanding shares of convertible preferred stock. The assumed conversion is calculated using the as-converted method, as if such conversion had occurred as of the beginning of each period presented and does not include the common stock warrants exercised just prior to the Company’s IPO or the 7.0 million shares sold in the Company’s IPO.
About Optimer
Optimer Pharmaceuticals is a biopharmaceutical company focused on discovering, developing and commercializing innovative anti-infective products for the treatment of serious infections. Optimer currently has two late-stage anti-infective product candidates. Difimicin (OPT-80) is being developed for the treatment of Clostridium difficile-associated diarrhea, the most common hospital-acquired diarrhea. Prulifloxacin (OPT-99) is an antibiotic currently in two Phase 3 trials for the treatment of travelers’ diarrhea, a form of infectious diarrhea. For more Company information go to www.optimerpharma.com.
Forward-looking Statements
Statements included in this press release that are not a description of historical facts are forward-looking statements, including without limitation all statements related to Difimicin, CDAD, and the timing of clinical trials. Words such as “believes,” “anticipates,” “plans,” “expects,” “intend,” “will,” “goal” and similar expressions are intended to identify forward- looking statements. The inclusion of forward-looking statements should not be regarded as a representation by Optimer that any of its plans will be achieved. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in Optimer’s business including, without limitation, risks relating to: the timing, progress and likelihood of success of our product research and development programs, the timing and status of our preclinical and clinical development of potential drugs and other risks detailed in Optimer’s filings with the Securities and Exchange Commission.
Optimer Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations
| | Three Months Ended | | Years Ended | |
| | December 31, | | December 31, | |
| | 2006 | | 2005 | | 2006 | | 2005 | |
Revenues: | | | | | | | | | |
Research grants | | $ | 85,575 | | $ | 462,408 | | $ | 676,764 | | $ | 1,355,134 | |
Collaborative research agreements | | — | | 233,423 | | 256,326 | | 791,548 | |
Total revenues | | 85,575 | | 695,831 | | 933,090 | | 2,146,682 | |
Operating expenses: | | | | | | | | | |
Research and development | | 3,137,514 | | 2,402,236 | | 10,480,924 | | 7,046,625 | |
General and administrative | | 1,203,504 | | 615,459 | | 3,523,221 | | 2,781,966 | |
Total operating expenses | | 4,341,018 | | 3,017,695 | | 14,004,145 | | 9,828,591 | |
Loss from operations | | (4,255,443 | ) | (2,321,864 | ) | (13,071,055 | ) | (7,681,909 | ) |
Interest income and other, net | | 238,469 | | 269,763 | | 1,169,160 | | 237,088 | |
Net loss | | (4,016,974 | ) | (2,052,101 | ) | (11,901,895 | ) | (7,444,821 | ) |
Accretion to redemption amount of redeemable convertible preferred stock | | (82,301 | ) | (82,301 | ) | (329,207 | ) | (223,439 | ) |
Net loss allocable to common stockholders | | $ | (4,099,275 | ) | $ | (2,134,402 | ) | $ | (12,231,102 | ) | $ | (7,668,260 | ) |
| | | | | | | | | |
Basic and diluted net loss per share attributable to common stockholders | | $ | (1.56 | ) | $ | (0.88 | ) | $ | (4.81 | ) | $ | (3.22 | ) |
Shares used to compute basic and diluted net loss per share attributable to common stockholders | | 2,633,227 | | 2,414,272 | | 2,542,893 | | 2,383,435 | |
The following table presents the Company’s non-GAAP basic and diluted net loss per share attributable to common shareholders:
| | Three Months Ended | | Years Ended | |
| | December 31, | | December 31, | |
| | 2006 | | 2005 | | 2006 | | 2005 | |
Shares used to compute GAAP basic and diluted net loss per share | | 2,633,227 | | 2,414,272 | | 2,542,893 | | 2,383,435 | |
Weighted average shares to reflect average effect of assumed conversion of Series A, B, C, and D preferred stock | | 12,217,374 | | 11,764,017 | | 12,249,391 | | 9,669,054 | |
Shares used to compute non-GAAP basic and diluted net loss per share attributable to common stockholders (unaudited) | | 14,850,601 | | 14,178,289 | | 14,792,284 | | 12,052,489 | |
Non-GAAP basic and diluted net loss per share attributable to common stockholders (unaudited) | | $ | (0.28 | ) | $ | (0.15 | ) | $ | (0.83 | ) | $ | (0.64 | ) |
| | | | | | | | | | | | | |
Optimer Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheets
| | Year Ended December 31, | |
| | 2006 | | 2005 | |
ASSETS | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 6,122,438 | | $ | 19,943,959 | |
Short-term investments | | 15,218,860 | | 9,936,498 | |
Prepaid expenses and other current assets | | 1,712,564 | | 730,001 | |
Total current assets | | 23,053,862 | | 30,610,458 | |
Property and equipment, net | | 744,564 | | 1,149,262 | |
Other assets | | 315,490 | | 575,096 | |
Total assets | | $ | 24,113,916 | | $ | 32,334,816 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | |
Current liabilities: | | | | | |
Accounts payable | | $ | 1,753,394 | | $ | 1,600,741 | |
Accrued expenses | | 3,310,199 | | 519,495 | |
Total current liabilities | | 5,063,593 | | 2,120,236 | |
Deferred rent | | 292,384 | | 279,414 | |
Commitments and contingencies | | — | | — | |
Redeemable preferred stock | | 65,459,643 | | 65,078,437 | |
Stockholders’ deficit | | (46,701,704 | ) | (35,143,271 | ) |
Total liabilities and stockholders’ deficit | | $ | 24,113,916 | | $ | 32,334,816 | |
Contacts: | John D. Prunty | Christina Donaghy |
| Chief Financial Officer & VP Finance | Media Relations Specialist |
| Optimer Pharmaceuticals, Inc. | Optimer Pharmaceuticals, Inc. |
| 858-909-0736 ext. 125 | 858-909-0736 ext. 154 |
