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IDIX Reports 4Q07 Results

[Prior guidance for the cash balance as of 12/31/07 had been $100-110M and in fact they had $112M. New guidance for cash burn during 2008 is $62M, leaving $50M at year-end. The $50M figure is conservative inasmuch as it assumes no milestone payments, license fees, reimbursement for development programs, or financing deals during 2008.]

http://biz.yahoo.com/prnews/080306/neth084.html

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Thursday March 6, 4:05 pm ET

CAMBRIDGE, Mass., March 6 /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 fourth quarter and year ended December 31, 2007. At December 31, 2007, Idenix's cash, cash equivalents and marketable securities totaled $112.0 million.

Significant company events for 2007 included:

-- The approval and launch of Sebivo® in major markets on a worldwide basis, including China and the European Union. By year-end 2007, Tyzeka®/Sebivo® (telbivudine) was approved in more than 50 countries.

-- The discontinuation of development of valopicitabine, or NM283, which had been Idenix's lead drug candidate for the treatment of hepatitis C.

-- A strategic restructuring whereby Novartis Pharma AG assumed full responsibility for the development, manufacturing and commercialization activities relating to Tyzeka/Sebivo effective October 1, 2007 in exchange for a royalty on worldwide product sales. As a result of these changes, Idenix reduced its workforce by approximately 100 positions, the majority of which supported the development and commercialization of Tyzeka/Sebivo in the United States and Europe.

-- The expansion of Idenix's pipeline to include a novel non-nucleoside reverse transcriptase inhibitor for the treatment of HIV-1 that is currently in clinical development, and several novel direct-acting HCV product candidates, including next-generation nucleoside/nucleotide polymerase inhibitors and protease inhibitors that are in late-stage preclinical testing.

"In 2007, Idenix experienced a great deal of change, which enabled us to reassess the strategic direction of our company and reevaluate our focus," said Jean-Pierre Sommadossi, Ph.D., chairman and chief executive officer of Idenix. "I am very pleased to report that the company continues to be grounded by a strong scientific foundation that enables us to rapidly discover novel antiviral drug candidates. As we begin 2008, we are a stronger, leaner organization that will devote all of our resources to the discovery and continued development of antiviral drugs for the treatment of HCV and HIV."

Financial Results

For the fourth quarter ended December 31, 2007, Idenix reported total revenues of $12.6 million, compared with total revenues of $15.3 million in the fourth quarter of 2006. Total revenues for the fourth quarter of 2007 consisted primarily of reimbursement by Novartis of expenses incurred by Idenix in connection with the development of Tyzeka®/Sebivo®, the amortization of up front fees associated with development programs licensed by Novartis, and royalties associated with worldwide sales of Tyzeka/Sebivo. The $2.7 million reduction in total revenues for the fourth quarter of 2007 as compared to the fourth quarter of 2006 is due primarily to lower development expenses associated with licensed programs and subsequent reimbursement of such expenses by Novartis.

Idenix reported a net loss of $17.5 million, or a loss of $0.31 per basic and diluted share for the fourth quarter ended December 31, 2007, compared to a net loss of $23.6 million, or a loss of $0.42 per basic and diluted share for the fourth quarter ended December 31, 2006. The $6.1 million reduction in net loss for the fourth quarter of 2007 as compared to the fourth quarter of 2006 is due primarily to lower selling, general and administrative expenses incurred as a result of a restructuring that the company began implementing at the end of the third quarter of 2007. The net loss for the fourth quarter of 2007 included $2.3 million in restructuring charges primarily related to severance costs, $1.5 million associated with the amortization of a portion of a proposed non-binding settlement with the University of Alabama Birmingham Research Foundation and related entities regarding the ongoing telbivudine- related contractual dispute and litigation, and $1.8 million of expenses associated with an uncertain international tax position. If either the proposed settlement is not completed on terms favorable to Idenix and/or the view on the company's international tax position changes, such accruals may be adjusted in future periods.

For the year ended December 31, 2007, Idenix reported total revenues of $68.0 million, compared with total revenues of $67.4 million for the year ended December 31, 2006. The company reported a net loss of $82.5 million, or a loss of $1.47 per basic and diluted share for the year ended December 31, 2007, compared with $75.1 million, or a loss of $1.34 per basic and diluted share for the year ended December 31, 2006. The net loss reported for the year ended December 31, 2007 included $8.7 million in restructuring charges, which includes the impairment of certain assets equal to approximately $2.1 million.

2008 Financial Guidance

Idenix estimates that the restructuring implemented in the fourth quarter of 2007 will result in annual savings of $40 million to $45 million, including associated third party and marketing costs. Idenix anticipates ending 2008 with approximately $50 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 and Webcast Information

Idenix will hold a conference call today at 4:30 p.m. ET. To access the call please dial 800-471-3635 U.S./Canada or 706-758-9475 International and enter passcode 33321401. To listen to a live webcast of the call, go to "Calendar of Events" in the Idenix Investor Center at www.idenix.com. Please log in approximately 10 minutes before the call to ensure a timely connection. A replay of the conference call and webcast will be available until March 20, 2008. To access the replay, please dial 800-642-1687 U.S./Canada or 706-645- 9291 International and enter the passcode 33321401.

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 www.idenix.com.
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