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Total revenues in the quarter ended December 31, 2007 were $5.6 million,and net loss was $2.7 million or $0.11 per share for the quarter. Totalrevenues for the year ended December 31, 2007 were $14.6 million, and net losswas $18.3 million or $0.87 per share for the year. Revenues in both thequarter and year ended December 31, 2007 included $2.4 million of deferredrevenue recognized by the Company as a result of the decision bysanofi-aventis to terminate its participation in the UVIDEM developmentprogram in December 2007. Cash and cash equivalents was $28.4 million as ofDecember 31, 2007 compared to $33.2 million on September 30, 2007 and $10.2million on December 31, 2006. We believe that our existing cash resources aresufficient to meet our cash requirements, based on our current development andoperating plan, into the first half of 2009.
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"We made significant progress over the past year in our efforts to bringour lead product candidate, L-MTP-PE, to market in Europe," said Timothy P.Walbert, president and chief executive officer, IDM Pharma. "We are developingL-MTP-PE for the treatment of osteosarcoma, the most common type of bonecancer affecting adolescents. We believe our updated survival data from theL-MTP-PE Phase 3 trial, demonstrating statistically superior overall survivalin long-term patient follow-up, were critical to the recent non-bindingopinion of the Committee for Medicinal Products for Human Use in Europe thatL-MTP-PE suggested a possible clinical benefit in terms of survival. Weremain committed to resolving the remaining items of the L-MTP-PE EuropeanMarketing Authorization Application and working at the same time to advancethis important potential treatment through its U.S. regulatory path."
Details of Financial Results
Total revenues in the quarter ended December 31, 2007 were $5.6 millioncompared to total revenues of $3.0 million for the quarter ended December 31,2006. Total revenues were $14.6 million for the year ended December 31, 2007,compared to total revenues of $11.3 million for the year ended December 31,2006. Revenues in all periods were primarily in connection with the Company'scollaboration agreement with sanofi-aventis.
Research and development (R&D) expenses in the quarter ended December 31,2007 decreased to $4.8 million from $5.3 million in the prior year period.For the year ended December 31, 2007, R&D expenses decreased to $21.8 millionfor the year ended December 31, 2007 from $22.3 million in 2006. Increased R&Dspending during the periods related to L-MTP-PE and UVIDEM development wasoffset by reductions in development activities related to IDM-2101 and otherdevelopment candidates that the Company has put on hold, as well as reductionsassociated with lower headcount and termination of a lease agreement forcertain of the Company's Paris facilities.
Selling and marketing and general and administrative (SG&A) expenses were$2.9 million for the quarter ended December 31, 2007 compared with $2.8million in the prior year period. SG&A expenses increased to $12.6 million forthe year ended December 31, 2007 from $10.0 million for the year endedDecember 31, 2006. The higher expenses in 2007 include $0.5 million in feespaid to an investment advisor in connection with the private placementcompleted in February 2007, $1.1 million associated with accrued severancebenefits, $0.5 million in bonus accruals, and $0.4 million due to higherheadcounts and consultant costs in the sales and marketing area.
Restructuring expenses were $1.1 million for both the quarter and yearended December 31, 2007, which included $0.5 mill
