Idenix Pharmaceuticals Reports First Quarter 2008 Financial Results

Date : 04/29/2008 @ 8:00AM
Source : PR Newswire
Stock : Idenix Pharmaceuticals (MM) (IDIX)
Quote : 8.13  -0.33 (-3.90%) @ 8:00PM
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Idenix Pharmaceuticals Reports First Quarter 2008 Financial Results

CAMBRIDGE, Mass., April 29 /PRNewswire-FirstCall/ -- Idenix Pharmaceuticals, Inc. (NASDAQ:IDIX), a biopharmaceutical company engaged in the discovery and development of drugs for the treatment of human viral and other infectious diseases, today reported unaudited financial results for the first quarter ended March 31, 2008. At March 31, 2008, Idenix's cash, cash equivalents and marketable securities totaled approximately $99.0 million.

2008 Year-to-Date Business Highlights -- Idenix reported positive data from an ongoing phase I/II study of IDX899, a non-nucleoside reverse transcriptase inhibitor (NNRTI) being developed for the treatment of HIV-1. In the first dosing cohort of this study, eight HIV-1 infected treatment-naive patients receiving 800 mg of IDX899 once-daily achieved a median reduction in plasma virus levels of approximately 2.0 log10, or 99 percent, after seven days of treatment. The 400 mg cohort of this study is now complete and dosing has been initiated in the 200 mg cohort. To date, no serious adverse events have been reported and no patients have discontinued from the study. Data from this clinical trial have been submitted for presentation at scientific meetings this summer.

-- The company continued to make progress with its hepatitis C discovery and development programs, having presented data from preclinical studies of its lead nucleotide prodrug candidate, IDX184, and potential clinical candidates from its protease inhibitor program at the annual meeting of the European Association for the Study of the Liver (EASL) last week. (Please see Idenix press release dated April 23, 2008 for more information regarding the EASL presentations.) -- The lead clinical candidate from the nucleotide prodrug program, IDX184, is on track for an investigational new drug (IND) application submission in the first half of 2008. Based on the preclinical pharmacology and toxicology profile of IDX184 demonstrated to date, the company anticipates that the first-in- man clinical trial should be initiated in the second half of 2008.

-- Idenix also reported positive preclinical data from its HCV protease inhibitor program, with internally discovered compounds exhibiting potency in the HCV replicon system and good pharmacokinetic profiles in several animal species.

"We have made significant progress in the last six months in the discovery and development of our HCV and HIV programs," said Jean-Pierre Sommadossi, Ph.D., chairman and chief executive officer of Idenix. "We are very pleased with the initial antiviral activity and safety data generated in the IDX899 clinical development program. Based on the profile of IDX899 exhibited to date, we believe that IDX899 could play an important role in the treatment of patients with HIV."

Sommadossi continued, "Our expertise and focus on antiviral discovery and development enables us to rapidly advance our programs through IND-enabling preclinical studies, proof-of-concept testing and into phase II clinical studies. With a comprehensive HCV discovery program in each of the major classes of direct-acting HCV antivirals, we are uniquely positioned to be one of the first companies to develop our own specifically targeted antiviral therapy for HCV (STAT-C)."

For the first quarter ended March 31, 2008, Idenix reported total revenues of $2.0 million, compared with total revenues of $24.8 million in the first quarter of 2007. The reduction in total revenues for the first quarter of 2008 as compared to the first quarter of 2007 was due to a decline of approximately $12.0 million in reimbursements of research and development costs from Novartis and the lack of receipt of milestone payments during the first quarter of 2008. Total revenues for the first quarter of 2008 consisted primarily of the amortization of upfront fees associated with development programs licensed by Novartis and royalties associated with worldwide sales of Tyzeka(R)/Sebivo(R) (telbivudine). Idenix reported a net loss of $20.5 million, or a loss of $0.36 per basic and diluted share, for the first quarter ended March 31, 2008, compared to a net loss of $11.6 million, or a loss of $0.21 per basic and diluted share, for the first quarter ended March 31, 2007.

2008 Financial Guidance

The company continues to expect to end 2008 with approximately $50.0 million of cash, cash equivalents and marketable securities, assuming no milestone payments, license fees, reimbursement for development programs, and no financing activities during 2008.

Conference Call Information

Idenix will hold a conference call today at 8:30 a.m. ET. To access the call please dial 800-471-3635 U.S./Canada 706-758-9475 International and enter conference identification number 43988689 or to listen to a live webcast of the call, go to "Calendar of Events" in the Idenix Investor Center at http://www.idenix.com/. Please log in approximately 10 minutes before the call to ensure a timely connection. An archived webcast will be available on the Idenix website for two weeks after the call. A replay of the call will also be available. To access the replay, please dial 800-642-1687 U.S./Canada or 706-645-9291 International and enter the passcode 43988689.

About Idenix

Idenix Pharmaceuticals, Inc., headquartered in Cambridge, Massachusetts, is a biopharmaceutical company engaged in the discovery and development of drugs for the treatment of human viral and other infectious diseases. Idenix's current focus is on the treatment of infections caused by hepatitis C virus and HIV. For further information about Idenix, please refer to http://www.idenix.com/.

Forward-looking Statements

This press release contains "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of forward-looking terminology such as "expect," "plans," "anticipates," "will," or similar expressions, or by express or implied statements with respect to the company's clinical development programs or commercialization activities in HIV or hepatitis C, or any potential pipeline candidates and expectations with respect to additional milestone payments and cash balances at the end of 2008. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no guarantees that historical sales of Tyzeka/Sebivo will in any way suggest future royalty payments or royalty rates owed to the company, or that the company will advance any clinical product candidate or other component of its potential pipeline to the clinic, to the regulatory process or to commercialization. In particular, management's expectations could be affected by unexpected regulatory actions or delays; uncertainties relating to, or unsuccessful results of, clinical trials, including additional data relating to the ongoing clinical trials evaluating its product candidates; the company's ability to obtain additional funding required to conduct its research, development and commercialization activities; the company's dependence on its collaboration with Novartis Pharma AG; changes in the company's business plan or objectives; the ability of the company to attract and retain qualified personnel; competition in general; and the company's ability to obtain, maintain and enforce patent and other intellectual property protection for its product candidates and its discoveries. These and other risks which may impact management's expectations are described in greater detail under the caption "Risk Factors" in the company's annual report on Form 10-K for the year ended December 31, 2007 as filed with the Securities and Exchange Commission (SEC) and other filings that the company makes with the SEC.

All forward-looking statements reflect the company's expectations only as of the date of this release and should not be relied upon as reflecting the company's views, expectations or beliefs at any date subsequent to the date of this release. Idenix anticipates that subsequent events and developments may cause these views, expectations and beliefs to change. However, while Idenix may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so.

IDENIX PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)

Three Months Ended March 31, 2008 2007

Revenues: Collaboration revenue - related party $2,031 $24,351 Other revenue 13 455 Total revenues 2,044 24,806 Operating expenses (1): Cost of sales 395 70 Research and development 14,868 22,554 Selling, general and administrative 8,321 15,840 Restructuring charges 260 ---- Total operating expenses 23,844 38,464 Loss from operations (21,800) (13,658) Investment and other income, net 939 1,978 Loss before income taxes (20,861) (11,680) Income tax benefit 401 111 Net loss $(20,460) $(11,569)

Basic and diluted net loss per share: ($0.36) ($0.21)

Shares used in calculation of basic and diluted net loss per share: 56,274 56,126

(1) Stock-based compensation expenses included in operating expenses amounted to approximately: Research and development $660 $1,168 Selling, general and administrative 880 1,237

IDENIX PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS)

(UNAUDITED)

March 31, December 31, 2008 2007

ASSETS Cash and cash equivalents $54,613 $48,260 Marketable securities 30,947 39,862 Receivables from related party 940 11,196 Other current assets 3,440 4,401 Total current assets 89,940 103,719 Intangible assets, net 13,258 13,548 Property and equipment, net 15,146 15,461 Marketable securities, non-current 13,330 23,882 Other assets 3,901 3,930 Total assets $135,575 $160,540

LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable and accrued expenses $17,440 $21,809 Deferred revenue, related party 8,193 8,372 Other current liabilities 486 553 Total current liabilities 26,119 30,734 Long-term obligations 18,073 19,107 Deferred revenue, related party, net of current 38,916 41,861 position 83,108 91,702 Total liabilities 52,467 68,838 Stockholders' equity Total liabilities and stockholders' equity $135,575 $160,540

Idenix Pharmaceuticals Contact: Teri Dahlman (617) 995-9905

DATASOURCE: Idenix Pharmaceuticals, Inc.

CONTACT: Teri Dahlman of Idenix Pharmaceuticals, Inc., +1-617-995-9905

Web site: http://www.idenix.com/

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