Adolor Corp (ADLR)

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Adolor Corporation Reports First Quarter 2010 Financial Results

Press Release Source: Adolor Corporation On Wednesday April 28, 2010, 8:00 am
EXTON, Pa.--(BUSINESS WIRE)--Adolor Corporation (NasdaqGM: ADLR - News) today reported a net loss of $9.6 million, or $(0.21) per basic and diluted share, for the three months ended March 31, 2010, compared to a net loss of $13.2 million, or $(0.28) per basic and diluted share, for the three months ended March 31, 2009.

Net product sales of ENTEREG® (alvimopan) for the three months ended March 31, 2010 were $5.3 million compared to $1.4 million for the three months ended March 31, 2009, primarily as a result of growth in the number of ordering hospitals and increased usage at ordering hospitals. Net product sales for the three months ended March 31, 2010 were recognized at the time of shipment as compared to net product sales for the three months ended March 31, 2009, which were recognized on a reorder basis under our previous revenue recognition policy. Net shipments of ENTEREG in the first quarter of 2009 were $2.0 million.

“The first quarter saw steady progress across the board at Adolor,” said Michael R. Dougherty, President and Chief Executive Officer. “In our delta opioid receptor agonist program, we have concluded enrollment in our Phase 2a proof-of-concept study of ADL5859 and ADL5747 in osteoarthritis patients and expect to present top line results from this study in mid-2010. We also were pleased to initiate in the first quarter our Phase 2a proof-of-concept study of ADL5747 in post-herpetic neuralgia and enrollment is now well underway. In our opioid bowel dysfunction (OBD) program, both ADL7445 and ADL5945 are now being evaluated in patients with OBD. We are pleased with the results observed to date in our Phase 1 program and anticipate initiating proof-of-concept testing later this year.”

“Progress continues with ENTEREG as well,” added Mr. Dougherty. “First quarter product sales were $5.3 million, with increases in the number of hospitals including ENTEREG on formulary and in re-ordering hospitals. We expect continued growth in product sales as the benefits of this first-in-class drug become more widely appreciated.”

Operating Highlights

As of March 31, 2010, the Company estimates that ENTEREG was included on formulary of approximately 575 of the 1,400 hospitals that collectively perform approximately 80% of the bowel resection surgeries in the United States. In addition, approximately 925 of the above-noted 1,400 hospitals, or 66%, are registered under the ENTEREG Access Support and Education (E.A.S.E.™) Program as of March 31, 2010.

Contract revenues were $5.4 million and $5.2 million for the three months ended March 31, 2010 and 2009, respectively.

Research and development expenses were $10.5 million and $12.3 million for the three months ended March 31, 2010 and 2009, respectively. This decrease was driven primarily by reductions in expenses associated with our June 2009 restructuring, offset partially by higher costs of clinical studies incurred during the three months ended March 31, 2010 in our delta agonist program and our OBD program.

Selling, general and administrative expenses were $9.2 million and $7.9 million for the three months ended March 31, 2010 and 2009, respectively. The increase in the first quarter of 2010 compared to the same period in 2009 was primarily driven by higher marketing expenses associated with ENTEREG, partially offset by lower general and administrative expenses period-over-period.

As of March 31, 2010, the Company had $72.6 million in cash, cash equivalents and short-term investments.

2010 Net Product Sales Guidance

The following guidance provided by Adolor is a projection, based upon numerous assumptions, all of which are subject to certain risks and uncertainties. For a discussion of the risks and uncertainties associated with this forward-looking statement, please see “Forward-Looking Statements” below.

The Company is reiterating its expectation for ENTEREG net product sales of between $30 million and $35 million for the year ending December 31, 2010.

Conference Call Information

Adolor's management will discuss the Company's first quarter 2010 results in a conference call with investors beginning at 8:45 a.m. ET today, April 28, 2010.

To participate in the conference call, dial [phone] for domestic callers and [phone] for international callers, and enter the conference passcode 38318251. Investors also can listen to the call live by logging on to the Company's website at http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.adolor.com&esheet=6267360&lan=en_US&anchor=www.adolor.com&index=1&md5=136575e32f09a9414d278d36c558e6e1 and clicking on “Investor Insights,” then “Calendar of Events.” A replay of the call will be available beginning approximately two hours after the event. To listen to a replay of the conference call, dial [phone] (domestic) or [phone] (international) and enter the conference passcode 20428470 or listen via Adolor’s website. The conference call replay will be available to investors for one week after the call.