Pharmasset Reports Financial Results for Quarter Ended June 30, 2008
Revenues were $0.5 million during the quarters ended June 30, 2008 and2007 and reflect amortization of up-front and subsequent collaborative andlicense payments received from Roche previously recorded as deferred revenue.Total costs and expenses for the quarter ended June 30, 2008 were $15.0million, as compared to $7.1 million for the same period in 2007. The $7.9million increase in total costs and expenses during the quarter ended June 30,2008 was primarily due to a $5.8 million increase in Phase 3 clinical trialexpenses to support registration of clevudine for the treatment of chronichepatitis B virus (HBV) infection, a $1.0 million increase in compensationexpense resulting from increased headcount, a $0.4 million increase in newdrug discovery expenses, and a $0.7 million increase in marketing and otheradministrative expenses. Investment income decreased to $0.2 million duringthe quarter ended June 30, 2008 from $0.7 million in the quarter ended June30, 2007, primarily on lower rates of return on invested balances. Interestexpense increased to $0.7 million during the quarter ended June 30, 2008 from$0.0 million in the year-ago quarter. The increase was due to interest on the$20.0 million of debt incurred during October 2007 and March 2008.
As of June 30, 2008, Pharmasset had approximately $51.0 million of cashand cash equivalents and approximately $1.0 million of short-term investments.
"We have made solid progress across all aspects of our business in thislast quarter. The ANRS sponsored study investigating clevudine in combinationwith Viread(R) in HBV is a very exciting study for us and reflects thepotential movement of the marketplace toward combination therapy," statedSchaefer Price, Pharmasset's Chief Executive Officer. "In addition, we havemade substantial progress in our HCV programs with the recent clinical datafrom R7128 and our nomination of PSI-7851 as a next-generation lead productcandidate to be advanced into clinical development. This progress allows usto maintain a well-balanced and growing portfolio of hepatology productcandidates", added Mr. Price. "We look forward to the unblinding of our R7128genotype 2/3 patient data and hope to see data that is consistent with theantiviral activity we see in genotype 1 patients."
Pharmasset is a clinical-stage pharmaceutical company committed todiscovering, developing and commercializing novel drugs to treat viralinfections. Pharmasset's primary focus is on the development of oraltherapeutics for the treatment of hepatitis B virus (HBV), hepatitis C virus(HCV) and human immunodeficiency virus (HIV).
Pharmasset is currently developing three product candidates. Clevudine,for the treatment of chronic HBV infection, is enrolling Phase 3 clinicaltrials for registration in North, Central and South America and Europe.Clevudine is already approved for HBV in South Korea and marketed by BukwangPharmaceuticals in South Korea under the brand name Levovir. R7128, an oraltreatment for chronic HCV infection, is in a 4-week Phase 1 clinical trial incombination with Pegasys(R) plus Copegus(R) through a strategic collaborationwith Roche. Racivir, which is being developed for the treatment of HIV incombination with other approved HIV drugs, has completed a Phase 2 clinicaltrial.
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