Exhibit 99.1
ARADIGM CORPORATION REPORTS THIRD QUARTER 2005 FINANCIAL RESULTS
HAYWARD, Calif., Nov. 1 /PRNewswire-FirstCall/ -- Aradigm Corporation
(Nasdaq: ARDM) today announced financial results for the third quarter and
nine months ended September 30, 2005.
The company reported contract revenues for the three months ended September
30, 2005 of $719,000 compared to $6.4 million for the same period in 2004.
Contract revenues for the nine months ended September 30, 2005 were $9.6 million
compared with $20.1 million for the same period in 2004. This decrease for the
three and nine months is due to the closing of the restructured license
agreement with Novo Nordisk on the AERx Diabetes Management System in January
2005. Revenues for the nine months ended September 30, 2005, were derived from
currently partnered AERx development programs. Total operating expenses for the
three months ended September 30, 2005 were $8.8 million compared to $14.6
million for the same period in 2004. For the nine months ended September 30,
2005, total operating expenses were $29.1 million compared with $43.6 million
for the same period in 2004. The decrease in operating expenses for the three
and nine months is tied to the shifting of manufacturing costs associated with
the AERx Diabetes Management System with the closing of the restructured license
agreement with Novo Nordisk.
The company reported net loss for the three months ended September 30, 2005
of $7.7 million, or $0.11 per share, compared with a net loss of $8.2 million,
or $0.13 per share, for the same period in 2004. The net loss for the nine
months ended September 30, 2005 was $18.5 million, or $0.26 per share, compared
with a net loss of $23.4 million, or $0.37 per share, for the same period in
2004. As we previously communicated, the cash used in operations during the
first three quarters of 2005 is higher than previous quarters reflecting an
increased spending tied to the commercialization efforts on the Intraject
Sumatriptan program.
Capital expenditures for the quarter ended September 30, 2005 were $1.5
million, a majority of which represented scheduled purchases related to
Intraject commercial production equipment and validation services.
As of September 30, 2005, cash, cash equivalents and short-term investments
totaled approximately $36.7 million.
Recent Highlights
-- In September 2005, the company announced the signing of an intellectual
property access agreement with a global pharmaceutical company in the area of
smoking cessation. This agreement grants this company access to Aradigm's strong
intellectual property position related to an inhalation system that delivers
reducing doses of nicotine, as a liquid or powder aerosol, into the bloodstream
via the deep lung. Specific financial terms of the agreement were undisclosed.
-- Last week, the company announced a development and commercialization
agreement with United Therapeutics for a liposomal formulation of treprostinil
as a treatment of pulmonary arterial hypertension. Treprostinil is an approved
and marketed prostacyclin analogue and this partnership will study this
formulation for delivery using our AERx System. The agreement contains
undisclosed commercial terms including development fees, milestone payments and
royalties upon commercialization. The program will be fully funded by United
Therapeutics.
"During the quarter, great progress was made in expanding our AERx pipeline
with two significant partnerships and executing key tasks to advance our lead
program, Intraject Sumatriptan, towards its targeted commercial launch in 2007,"
said Dr. Bryan Lawlis, Aradigm's President and CEO. "These AERx collaborations
clearly demonstrate the value of the technology itself, the strong surrounding
intellectual property and the value of the unique delivery parameters brought to
the compound or drug. With our pipeline expanding and programs progressing in
clinical development, and with the advancement of liposomal ciprofloxacin in CF
infections, Aradigm is pursuing a path towards becoming a product-oriented
company."
Conference Call
The company will host a conference call and question and answer session
today at 4:30 p.m. 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 1567451#.
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, smoking cessation, and diabetes. 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:
Christopher Keenan
Aradigm
510-265-9370
ARADIGM CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share information)
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT 30, SEPT 30,
------------------------------ ------------------------------
2005 2004 2005 2004
------------- ------------- ------------- -------------
Contract revenues -
From related parties $ 200 $ 5,918 $ 7,911 $ 19,534
Contract revenues -
Other 519 434 1,734 539
Total Contract revenues 719 6,352 9,645 20,073
Operating expenses:
Research and
development 6,471 11,407 20,858 34,706
General and
administrative 2,326 3,217 8,274 8,920
Total operating
expenses 8,797 14,624 29,132 43,626
Loss from operations (8,078) (8,272) (19,487) (23,553)
Interest income 342 45 980 160
Interest expense 8 (3) (37) (18)
Net loss $ (7,728) $ (8,230) $ (18,544) $ (23,411)
Basic and diluted net
loss per share $ (0.11) $ (0.13) $ (0.26) $ (0.37)
Shares used in
computing basic and
diluted net loss
per share 72,590 63,564 72,484 63,350
ARADIGM CORPORATION
CONDENSED BALANCE SHEETS
(In thousands)
Sept 30, December 31,
2005 2004
------------- -------------
(Unaudited) *
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $ 36,724 $ 16,763
Receivables 286 99
Current portion of notes receivable
from officers and employees 62 67
Other current assets 973 1,602
Total current assets 38,045 18,531
Property and equipment, net 9,192 60,555
Noncurrent portion of notes receivable
from officers and employees 162 216
Other assets 550 439
Total assets $ 47,949 $ 79,741
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED
STOCK AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,494 $ 2,469
Accrued clinical and cost of other studies 289 293
Accrued compensation 3,405 2,984
Deferred revenue 270 7,525
Other accrued liabilities 347 1,138
Total current liabilities 5,805 14,409
Noncurrent portion of deferred revenue -- 3,966
Noncurrent portion of deferred rent 660 1,943
Redeemable convertible preferred stock 23,669 23,669
Shareholders' equity 17,815 35,754
Total liabilities, redeemable convertible
preferred stock and shareholders' equity $ 47,949 $ 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- 11/01/2005
/CONTACT: Christopher Keenan of Aradigm Corporation, +1-510-265-9370/
/Web site: http://www.aradigm.com /
(ARDM)