Exhibit 99.1
[ARADIGM LOGO]
MEDIA: INVESTORS:
Chris Keenan Joe Dorame
Aradigm RCG Capital Markets Group, Inc.
(510) 265-9370 (480) 675-0400
ARADIGM CORPORATION REPORTS
THIRD QUARTER AND NINE MONTH 2003 FINANCIAL RESULTS
HAYWARD, Calif., November 5, 2003 -- Aradigm Corporation (Nasdaq: ARDM) today
announced financial results for the third quarter and nine months ended
September 30, 2003.
Contract revenues for the quarter were $9.8 million, compared to $6.0 million
for the same period in 2002. The majority of these revenues were derived from
the collaboration agreement with Novo Nordisk A/S to develop the AERx(R) insulin
Diabetes Management System (iDMS). Total operating expenses for the third
quarter were $14.4 million, compared to $16.3 million for the same quarter 2002.
The Company reported net loss applicable to common shareholders for the third
quarter 2003 of $4.5 million, or $0.08 per share, compared with a loss of $10.3
million, or $0.34 per share, for the same period in 2002.
"The company's efforts during the quarter focused on continuing support of our
ongoing AERx iDMS Phase 3 clinical trials, as well as moving our Intraject(R)
program into the development phase as positive results from our configuration
trial were recently announced," said Richard Thompson, Chairman and Chief
Executive Officer of Aradigm. "We continue to manage our cash resources
efficiently while effectively integrating the Intraject acquisition into our
portfolio."
Contract revenues for the nine months ended September 30, 2003 were $26.9
million, compared with $21.4 million for the same period in 2002. Total
operating expenses for the nine months ended September 30, 2003 were $46.9
million, compared with $50.5 million for the same period in 2002. The net loss
for the nine months ended September 30, 2003 was $19.9 million, or $0.42 per
share, compared with a net loss of $28.8 million, or $0.96 per share, for the
same period in 2002.
As of September 30, 2003, cash, cash equivalents, and all investments totaled
approximately $14.3 million. Immediately after the quarter end, on October 2,
2003, the company received an $8.9 million payment related to a scheduled
quarterly payment and previously unreimbursed expenses for partner-funded
projects. This was recorded as a receivable in the quarterly financials.
OPERATIONAL HIGHLIGHTS
- - During the quarter, the company announced the publication of clinical
data involving the AERx Pain Management System in the peer reviewed
journal Anesthesiology. Results from this study involving 89 patients
following orthopedic bunionectomy surgery demonstrated that inhalation
of morphine via the AERx System was safe, well-tolerated and produced
comparable pain relief to intravenous morphine.
- - In September, the company announced the results from a study of its
Intraject platform showing that three configurations of the system
achieved acceptable performance, eliminating the incidence of wet
injection reported previously. Aradigm will move forward with one of
the three configurations to be then used by its potential partners.
CONFERENCE CALL
The company will host a conference call and question and answer session at 4:30
pm Eastern Time, 1:30 pm Pacific Time today to discuss these financial results.
Dial toll-free 1 (800) 559-2403 to access the conference call. International
callers dial +1 (847) 619-6534. The event webcast can be found under the
investor relations section of: www.aradigm.com. The webcast and audio replay of
the conference call will be available following the call, which can be accessed
on www.aradigm.com or by dialing toll-free 1 (877) 213-9653. International
callers should dial +1 (630) 652-3041. The replay passcode is 7908689.
Aradigm is working to improve the quality of life for patients through the
development of its innovative needle-free drug delivery platforms. The Company's
AERx(R) advanced pulmonary delivery platform and its Intraject(R)
needle-free injector system provide leading pharmaceutical and biotechnology
partners with effective drug delivery solutions. Aradigm's technologies both use
liquid drug formulations to deliver drugs to the targeted area of either the
lung, or the systemic circulation. The company's most advanced product is in
Phase 3 clinical trials for the treatment of diabetes in a partnership with Novo
Nordisk, a world leader in diabetes care. More information about Aradigm can be
found at www.aradigm.com.
Except for the historical information contained herein, this news release
contains forward-looking statements that involve risk and uncertainties,
including clinical results, the timely availability and acceptance of new
products, the impact of competitive products and pricing, and the management of
growth, as well as the other risks detailed from time to time in Aradigm
Corporation's Securities and Exchange Commission (SEC) Filings, including the
company's Annual Report on Form 10-K, and quarterly reports on Form 10-Q.
AERx, and Intraject are registered trademarks of Aradigm Corporation.
< Financial charts follow >
ARADIGM CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(IN $000'S, EXCEPT PER SHARE INFORMATION)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------------- ----------------------
2003 2002 2003 2002
-------- -------- -------- --------
(UNAUDITED) (UNAUDITED)
Contract revenues - From related
parties $ 9,840 $ 5,525 $ 26,664 $ 19,682
Contract revenues - Other 3 426 247 1,682
-------- -------- -------- --------
Total Contract revenues 9,843 5,951 26,911 21,364
-------- -------- -------- --------
Operating expenses:
Research and development 11,988 13,660 $ 38,988 42,561
General and administrative 2,428 2,636 $ 7,941 7,903
-------- -------- -------- --------
Total operating expenses 14,416 16,296 46,929 50,464
-------- -------- -------- --------
Loss from operations (4,573) (10,345) (20,018) (29,100)
-------- -------- -------- --------
Interest income 68 164 $ 262 664
Interest expense and other (27) (100) $ (122) (349)
-------- -------- -------- --------
Net loss $ (4,532) $(10,281) $(19,878) $(28,785)
======== ======== ======== ========
Basic and diluted net loss per share $ (0.08) $ (0.34) $ (0.42) $ (0.96)
Shares used in computing basic and
diluted net loss per share 54,263 30,597 47,088 29,958
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ARADIGM CORPORATION
CONDENSED BALANCE SHEETS
(IN $000'S)
SEPTEMBER 30, DECEMBER 31,
2003 2002
------------- ------------
(UNAUDITED)
ASSETS
Current assets:
Cash, cash equivalents & short-term investments $14,318 $29,890
Receivables 8,959 282
Other current assets 1,839 1,593
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Total current assets 25,116 31,765
Property and equipment, net 63,885 63,233
Notes receivable from officers 317 169
Long-term investments 0 1,553
Other assets 394 409
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Total assets $89,712 $97,129
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LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED
STOCK AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,146 $ 1,951
Accrued clinical and cost of other studies 214 291
Accrued compensation 3,875 2,195
Deferred revenue 8,281 10,682
Current portion of capital lease obligations 645 1,753
Other accrued liabilities 748 407
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Total current liabilities 14,909 17,279
Noncurrent portion of deferred revenue 4,782 6,170
Noncurrent portion of capital lease obligations 0 497
Noncurrent portion of deferred rent 1,270 1,108
Redeemable convertible preferred stock 23,669 30,665
Shareholders' equity 45,082 41,410
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Total liabilities, redeemable convertible preferred stock and
shareholders' equity $89,712 $97,129
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