Exhibit 99.1
ARADIGM CORPORATION REPORTS SECOND QUARTER 2005 FINANCIAL RESULTS
HAYWARD, Calif., July 26 /PRNewswire-FirstCall/ -- Aradigm Corporation
(Nasdaq: ARDM) today announced financial results for the second quarter and
six months ended June 30, 2005.
The company reported contract revenues for the three months ended June 30,
2005 of $1.2 million compared to $7.1 million for the same period in 2004.
This decrease is due to last quarter's closing of the restructured license
agreement with Novo Nordisk on the AERx Diabetes Management System. Contract
revenues for the six months ended June 30, 2005 were $8.9 million compared
with $13.7 million for the same period in 2004. Revenues were derived from
currently partnered AERx(R) development programs. Total operating expenses for
the three months ended June 30, 2005 were $10.0 million compared to $14.6
million for the same period in 2004. For the six months ended June 30, 2005
total operating expenses were $20.3 million compared with $29.0 million for
the same period in 2004.
The company reported net loss for the three months ended June 30, 2005 of
$8.5 million, or $0.12 per share, compared with a net loss of $7.5 million, or
$0.12 per share, for the same period in 2004. The net loss for the six months
ended June 30, 2005 was $10.8 million, or $0.15 per share, compared with a net
loss of $15.2 million, or $0.24 per share, for the same period in 2004. As
expected, the cash used in operations during the first two quarters is higher
reflecting spending tied to the commercialization efforts on the Intraject
Sumatriptan program.
Capital expenditures for the quarter were $1.0 million, a majority of
which represented scheduled purchases related to Intraject commercial
production equipment and validation services.
As of June 30, 2005, cash, cash equivalents and short-term investments
totaled approximately $44.8 million.
Recent Highlights
* In June 2005, the company announced results from a self-injection
study of Intraject with sumatriptan. The trial was a randomized,
open-label, single-dose, crossover study evaluating the
pharmacokinetics of sumatriptan at three injection sites in 24
healthy adult male and female volunteers naive to self-injection
with Intraject. As compared to previous clinician- administered
studies, subjects in this study were asked to dose themselves in the
thigh, abdomen and arm. Results showed those who self-administered
Intraject Sumatriptan achieved bioequivalent blood plasma levels to
the currently marketed subcutaneous needle-injected product.
* Earlier this month, the company announced that its AERx aerosolized
hydroxychloroquine (HCQ) program, which is partnered with APT
Pharmaceuticals, was moving into Phase 2 clinical studies. This
program is examining the application of the anti-infective HCQ as a
new class of treatment for asthma and chronic obstructive pulmonary
disease. This follows a positive Phase 1 study in healthy
volunteers, which determined that the aerosolized compound had a
favorable safety profile, had a tolerable taste and exhibited an
excellent pharmacokinetic profile.
"We continue to be pleased with the advancements within the AERx and
Intraject clinical programs of both of our systems," said Dr. Bryan Lawlis,
President and Chief Executive Officer of Aradigm. "The progress that we are
making in development, partnering and clinical programs encourages us to
believe that our current business strategy is working."
Conference Call
The company will host a conference call and question and answer session
today at 4:30 pm Eastern Time, 1:30 pm Pacific Time today to discuss these
financial results. Dial toll-free 1-877-788-8790 to access the conference
call. International callers dial +1-706-679-7281. The event webcast can be
found under the investor relations section of the company's website:
www.aradigm.com. The webcast and audio replay of the conference call will be
available following the call, and can be accessed on www.aradigm.com or by
dialing toll-free 1-800-642-1687. International callers should dial
+1-706-645-9291. The replay passcode is 7767982#.
Aradigm develops non-invasive delivery systems to enable patients to
comfortably self-administer biopharmaceuticals and small molecules. The
company's advanced AERx(R) pulmonary and Intraject(R) needle-free delivery
technologies offer rapid delivery solutions for liquid drug formulations.
Current development programs focus on neurological disorders, heart disease,
respiratory conditions, diabetes and cancer. 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.
NOTE: AERx and Intraject are registered trademarks of Aradigm.
Contact: Chris Keenan or Joe Dorame
Aradigm RCG Capital Markets Group, Inc.
510-265-9370 480-675-0400
ARADIGM CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share information)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------ ------------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Contract revenues
- From related
parties $ -- $ 7,006 $ 7,444 $ 13,616
Contract revenues
- Other 1,212 72 1,482 105
Total Contract
revenues 1,212 7,078 8,926 13,721
Operating expenses:
Research and
development 7,317 11,412 14,387 23,299
General and
administrative 2,713 3,167 5,948 5,703
Total operating
expenses 10,030 14,579 20,335 29,002
Loss from operations (8,818) (7,501) (11,409) (15,281)
Interest income 350 49 638 115
Interest expense (8) (5) (45) (15)
Net loss $ (8,476) $ (7,457) $ (10,816) $ (15,181)
Basic and diluted
net loss per share $ (0.12) $ (0.12) $ (0.15) $ (0.24)
Shares used in
computing basic and
diluted net loss
per share 72,561 63,531 72,429 63,238
ARADIGM CORPORATION
CONDENSED BALANCE SHEETS
(In thousands)
June 30, December 31,
2005 2004
---------- -----------
(Unaudited) *
ASSETS
Current assets:
Cash, cash equivalents and short-term
investments $ 44,819 $ 16,763
Receivables 749 99
Current portion of notes receivable from
officers and employees 61 67
Other current assets 1,158 1,602
Total current assets 46,787 18,531
Property and equipment, net 7,966 60,555
Noncurrent portion of notes receivable from
officers and employees 192 216
Other assets 557 439
Total assets $ 55,502 $ 79,741
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED
STOCK AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,221 $ 2,469
Accrued clinical and cost of other studies 153 293
Accrued compensation 3,131 2,984
Deferred revenue -- 7,525
Other accrued liabilities 389 1,138
Total current liabilities 5,894 14,409
Noncurrent portion of deferred revenue -- 3,966
Noncurrent portion of deferred rent 606 1,943
Redeemable convertible preferred stock 23,669 23,669
Shareholders' equity 25,333 35,754
Total liabilities, redeemable convertible
preferred stock and shareholders' equity $ 55,502 $ 79,741
* The balance sheet at December 31, 2004 has been derived from the
audited financial statements at that date but does not include all
of the information and footnotes required by accounting principles
generally accepted in the United States for complete financial
statements.
SOURCE Aradigm Corporation
-0- 07/26/2005
/CONTACT: Chris Keenan of Aradigm, +1-510-265-9370; or Joe Dorame of RCG
Capital Markets Group, Inc., +1-480-675-0400/
/Web site: http://www.aradigm.com /
_