Cadence Pharmaceuticals Reports Second Quarter 2007 Financial Results
As of June 30, 2007, Cadence held cash and cash equivalents of$66.9 million.
"We remain keenly focused on executing the development programs for ourtwo Phase III product candidates, intravenous acetaminophen and Omigard(TM),"said Ted Schroeder, Cadence's President and Chief Executive Officer. "As aresult, we are on track to meet our clinical development andpre-commercialization manufacturing objectives for both product candidates. Inparticular, we are pleased with the recent execution of a development andsupply agreement for IV acetaminophen with Baxter Healthcare, a leading globalcontract manufacturer, which we believe will position us to meet theanticipated demand for this important product candidate upon commercializationand for several years thereafter."
Total operating expenses for the second quarter of 2007 were$15.7 million, compared to $6.6 million for the second quarter of 2006. Theincrease in operating expenses was primarily due to a $7.8 million increase inresearch and development expenses related to the company's ongoing Phase IIIclinical trials of Omigard and IV acetaminophen. In addition, the increasedoperating expenses were due to pre-commercialization manufacturing developmentactivities for IV acetaminophen, increased personnel related costs due to theplanned hiring of staff to support the company's clinical and regulatoryefforts, and a $1.0 million increase in general and administrative expensesdue to increases in labor related costs, costs related to operating as apublic company, insurance costs and depreciation expense.
For the six months ended June 30, 2007, operating expenses were$26.0 million, compared to $35.9 million for the six months ended June 30,2006. The decrease in operating expenses was primarily related to a one-timeinitial license fee of $25.3 million incurred by Cadence during the firstquarter of 2006 in connection with the acquisition of rights to IVacetaminophen. This decrease was partially offset by a $12.6 million increasein costs during the first six months of 2007 related to the company's ongoingPhase III clinical trials of Omigard and IV acetaminophen,pre-commercialization manufacturing development activities for IVacetaminophen, personnel related costs due to the planned hiring of staff tosupport the company's clinical and regulatory efforts, and a $2.3 millionincrease in general and administrative expenses due to increases instock-based compensation, labor related costs, costs related to operating as apublic company, depreciation expense and insurance costs.
Conference Call and Webcast at 4:30 p.m. Eastern Time/1:30 p.m. PacificTime
Cadence management will host a conference call on Tuesday, August 14, 2007at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss financialresults for the second quarter ended June 30, 2007. Interested investors mayparticipate in the conference call by dialing (888) 802-2225 (domestic) or(913) 312-1268 (international). To access the webcast, please log on to thecompany's website at http://www.cadencepharm.com and go to the InvestorRelations page. A replay of the webcast will be available approximately twoho
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