EXHIBIT 99.1
[ANADYS PHARMACEUTICALS LOGO]
CONTACT:
Michael Kamdar Pete De Spain
Sr. VP, Corporate Development and Finance Manager, Corporate Communications
Anadys Pharmaceuticals, Inc. Anadys Pharmaceuticals, Inc.
(858) 530-3667 (858) 530-3653
cc@anadyspharma.com pdespain@anadyspharma.com
ANADYS PHARMACEUTICALS REPORTS SECOND QUARTER 2004 FINANCIAL RESULTS
SAN DIEGO, AUG. 5, 2004 - Anadys Pharmaceuticals, Inc. (Nasdaq: ANDS), a
biopharmaceutical company committed to the discovery, development and
commercialization of novel medicines for the treatment of chronic viral
hepatitis and bacterial infections, today reported its financial results for the
quarter ended June 30, 2004.
"We are pleased with the progress we made during the second quarter as we
continue to advance the clinical development of our lead Hepatitis C and
Hepatitis B programs," said Kleanthis G. Xanthopoulos, Ph.D., Anadys' President
and Chief Executive Officer. "Meanwhile, we continue to harvest additional
promising drug candidates utilizing our integrated drug discovery and
development platform, while leveraging these capabilities in discovery
collaborations with pharmaceutical and biotechnology companies such as Roche and
Daiichi. We hope to build on this momentum going forward and establish Anadys as
a leading franchise in antivirals and antibacterials."
RECENT HIGHLIGHTS
- - Anadys selected ANA975 as a development candidate for orally administered
front-line treatment of chronic hepatitis C virus (HCV) infection. ANA975 was
selected from a family of isatoribine prodrug compounds discovered at Anadys
based upon its favorable pharmaceutical properties. Isatoribine and its
prodrugs are a new class of drugs being developed by Anadys to regulate
innate immune responses against viruses.
- - Anadys and LG Life Sciences entered into a joint development and license
agreement for the global development of ANA380, a compound for the treatment
of hepatitis B virus (HBV) infection, and announced the completion of a Phase
I/IIa clinical trial of ANA380 the following month. The companies are working
together to further advance the program through clinical development.
- - Anadys entered into a new drug discovery collaboration with Roche. The two
companies began a collective relationship in August 2002 that utilized
Anadys' drug discovery capabilities to advance lead compounds against a Roche
oncology program and expanded the original agreement in October 2003. Under
the terms of the new agreement, Anadys will engage its drug discovery
capabilities to advance lead compounds against an additional undisclosed
Roche program.
- - Anadys announced that the underwriters of its initial public offering
exercised their over-allotment option to purchase an additional 743,950
shares of common stock, raising the total gross proceeds of the IPO to $49.0
million.
- - Anadys relocated to a state-of-the-art facility located in the Torrey Mesa
area of San Diego. The facility, originally built by Syngenta five years ago
to accommodate both chemistry and biology, brings these capabilities together
in one building, which Anadys expects will enable it to advance its discovery
and development programs more efficiently.
FINANCIAL RESULTS
The Company reported revenues of $214,000 for the second quarter of 2004,
compared to $643,000 for the second quarter of 2003. The net loss applicable to
common stockholders was $10.9 million for the second quarter of 2004, compared
to $5.5 million for the same period in the prior year. Basic and diluted net
loss per common share was $0.50 in the second quarter of 2004, compared to $3.92
for the same period in 2003. Pro forma basic and diluted net loss per common
share (assuming that the conversion of preferred stock to common stock that was
automatically effected in conjunction with the IPO took place as of the original
date of issuance) was $0.50 in the second quarter of 2004, compared to $0.39 for
the same period in 2003.
Revenues for the six months ended June 30, 2004 were $896,000, compared to $1.2
million for the same period in 2003. For the six months ended June 30, 2004,
Anadys reported a net loss applicable to common stockholders of $18.6 million,
compared to $13.2 million for the same period last year. Basic and diluted net
loss per common share was $1.54 for the six months ended June 30, 2004, compared
to $9.84 for the same period in 2003. For the six months ended June 30, 2004,
pro forma basic and diluted net loss per common share (assuming that the
conversion of preferred stock to common stock that was automatically effected in
conjunction with the IPO took place as of the original date of issuance) was
$0.99, compared to $0.96 for the same period last year.
CONFERENCE CALL & WEBCAST
Anadys will be hosting both a conference call and webcast to discuss second
quarter 2004 financial results and highlights today at 4:30 p.m. Eastern Time
(1:30 p.m. Pacific Time). To access the webcast via the Internet, go to
www.anadyspharma.com. Please connect at least 15 minutes prior to the conference
call to ensure adequate time for any software download that may be required. The
webcast will be archived on www.anadyspharma.com through August 19, 2004.
Alternatively, you may dial 1-800-901-5213 (U.S.) or 1-617-786-2962
(international), participant passcode 35481348, to access the call. Telephone
replay is available approximately two hours after the call through August 19,
2004. To access, please call 1-888-286-8010 (U.S.) or 1-617-801-6888
(international) and dial the participant passcode 94909363.
ABOUT ANADYS
Anadys Pharmaceuticals, Inc. (www.anadyspharma.com) is a biopharmaceutical
company committed to advancing patient care by discovering, developing and
commercializing novel small molecule, anti-infective medicines for the treatment
of hepatitis C virus (HCV), hepatitis B virus (HBV) and bacterial infections.
Anadys is advancing its anti-infective portfolio through the development of its
two clinical programs, the isatoribine family of compounds including the oral
prodrug ANA975 for the treatment of HCV, and ANA380 for the treatment of HBV. In
addition, Anadys' anti-infective therapeutic platform is designed to advance a
strong and continual pipeline of drug candidates into the clinic.
# # #
Statements in this press release that are not strictly historical in nature
constitute "forward-looking statements." Such statements include, but are not
limited to, references to Anadys' objective to become a leading franchise in
antivirals and antibacterials, the expectation that ANA975 may be suitable as an
oral front-line treatment for chronic HCV infection, activities expected to
occur in connection with the LG Life Sciences relationship, the advancement of
ANA380 in clinical development and the efficiencies that Anadys expects to
realize as a result of its move to its new facility. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results of Anadys Pharmaceuticals to be materially
different from historical results or from any results expressed or implied by
such forward-looking statements. In particular, Anadys' results may be affected
by risks associated with the implementation of its relationship with LG Life
Sciences and the new agreement with Roche, competition from other biotechnology
and pharmaceutical companies, its effectiveness at managing its financial
resources, its ability to successfully develop and market products, difficulties
or delays in its clinical trials, difficulties or delays in manufacturing its
clinical trials materials, the scope and validity of patent protection for its
products, regulatory developments involving future products and its ability to
obtain additional funding to support its operations. These and other factors
that may cause actual results to differ are more fully discussed in the "Risk
Factors" section of Anadys' Form 10-Q for the quarter ended March 31, 2004. All
forward-looking statements are qualified in their entirety by this cautionary
statement. Anadys is providing this information as of this date and does not
undertake any obligation to update any forward-looking statements contained in
this document as a result of new information, future events or otherwise.
ANADYS PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
--------------------------- -------------------------
2004 2003 2004 2003
---- ---- ---- ----
Revenues $ 214 $ 643 $ 896 $ 1,205
Operating expenses 11,204 5,962 19,286 14,109
Interest income (expense) 42 (12) -- 25
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Net loss (10,948) (5,331) (18,390) (12,879)
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Accretion to redemption value of
redeemable convertible
preferred stock -- (167) (175) (332)
-------- -------- -------- --------
Net loss applicable to common
stockholders $(10,948) $ (5,498) $(18,565) $(13,211)
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Net loss per share, basic and
diluted $ (0.50) $ (3.92) $ (1.54) $ (9.84)
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Shares used in calculating net
loss per share,
basic and diluted 22,094 1,402 12,058 1,343
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Pro forma net loss per share,
basic and diluted $ (0.50) $ (0.39) $ (0.99) $ (0.96)
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Pro forma shares used in
calculating net loss
per share, basic and
diluted 22,094 13,503 18,625 13,442
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In connection with our initial public offering each share of Series C redeemable
convertible preferred stock was automatically converted to common stock at a
ratio of one share of common stock for 5.10 shares of preferred stock. Each
share of Series A-1, A-2, A-3, A-4, A-5, and B of convertible preferred stock
was automatically converted to common stock at a ratio of one share of common
stock for approximately 11.92, 11.92, 10.62, 7.38, 3.36, and 2.35 shares of
preferred stock, respectively. Accordingly, pro forma basic and diluted net loss
per common share has been calculated assuming the preferred stock was converted
as of the original date of issuance of the preferred stock.
ANADYS PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
JUNE 30, DECEMBER 31,
2004 2003
---- ----
(UNAUDITED) (AUDITED)
Assets
Cash, cash equivalents and securities
available-for-sale $42,310 $ 14,499
Other current assets 2,064 1,693
Noncurrent assets 4,723 4,050
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Total assets $49,097 $ 20,242
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Liabilities and stockholders' equity
Current liabilities $ 3,959 $ 3,888
Long-term liabilities 1,042 1,401
Other long-term liabilities 57 --
Redeemable convertible preferred stock -- 45,012
Stockholders' equity 44,039 (30,059)
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Total liabilities and stockholders' equity $49,097 $ 20,242
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