CAMBRIDGE, Mass., Nov. 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 third quarter and nine months ended September 30, 2007. At September 30, 2007, Idenix's cash, cash equivalents and marketable securities totaled approximately $136.5 million.[This is consistent with the prior guidance of $100-110M cash at year-end.]
For the third quarter ended September 30, 2007, Idenix reported total revenues of $10.9 million, compared with total revenues of $19.6 million in the third quarter of 2006. Total revenues for the third quarter of 2007 consist of reimbursement by Novartis Pharma AG of expenses incurred by Idenix in connection with the development of Tyzeka®/Sebivo® (telbivudine), valtorcitabine and valopicitabine, Idenix's product and product candidates for the treatment of hepatitis B virus (HBV) and hepatitis C virus (HCV), respectively, and the amortization of the up-front fees received by Idenix in connection with Novartis' license of telbivudine, valtorcitabine and valopicitabine and product sales of Tyzeka/Sebivo. Idenix reported a net loss of $30.5 million, or a loss of $0.54 per basic and diluted share for the third quarter ended September 30, 2007, compared to a net loss of $19.7 million, or a loss of $0.35 per basic and diluted share for the third quarter ended September 30, 2006. Included in the net loss for the third quarter ended September 30, 2007 was a $6.4 million restructuring charge primarily related to severance costs and impairment of certain fixed assets related to the transition of commercialization, development and manufacturing activities for telbivudine to Novartis. Idenix currently expects to incur approximately $3 million to $5 million in additional charges relating to this restructuring over the next two quarters. Also in connection with the restructuring, the company accelerated the depreciation of certain assets equal to approximately $1.9 million in the quarter ended September 30, 2007 and expects to record approximately an additional $1 million of accelerated depreciation charges in the fourth quarter of 2007.
For the nine months ended September 30, 2007, Idenix reported total revenues of $55.4 million, compared with total revenues of $52.1 million for the nine months ended September 30, 2006. The company reported a net loss of $65.0 million, or a loss of $1.16 per basic and diluted share for the nine months ended September 30, 2007, compared with $51.5 million, or a loss of $0.92 per basic and diluted share for the nine months ended September 30, 2006.
Significant events in the last quarter include:
-- Announced a strategic restructuring whereby Novartis, Idenix's collaboration partner, effective October 1, 2007, assumed full responsibility for the development, manufacturing and commercialization activities relating to Tyzeka/Sebivo, including ongoing and future clinical trials and regulatory filings. In place of the previous revenue sharing arrangement, Idenix will receive a royalty on worldwide product sales. As a result of these changes, Idenix is reducing its workforce by approximately 100 positions, the majority of which supported the development and commercialization of Tyzeka/Sebivo in the United States and Europe. Idenix estimates that this restructuring will result in savings of $40 million to $45 million, including associated third party and marketing costs, on an annualized basis.
-- Completed a single-dose pharmacokinetic (PK) study and a 7-day multi-dose study in healthy volunteers for the company's non-nucleoside reverse transcriptase inhibitor (NNRTI) candidate IDX899 for the treatment of HIV. The full preclinical data and these first human data were submitted for presentation at the Conference on Retroviruses and Opportunistic Infections (CROI), which will be held in February 2008.
"While this has been a challenging time in the evolution of Idenix, we continue to be optimistic about the company's future," said Jean-Pierre Sommadossi, Ph.D., chairman and chief executive officer of Idenix. "The restructuring will allow us to devote our resources to the discovery and development of antiviral drugs for the treatment of HCV and HIV. We have had active HCV and HIV discovery programs underway for the past 18 months and are very excited about the candidates in our pipeline."
2007 Financial Guidance
Idenix continues to expect to end 2007 with between $100 million and $110 million of cash, cash equivalents and marketable securities.
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 21545602. 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 November 20, 2007. To access the replay, please dial 800-642-1687 U.S./Canada or 706-645-9291 International and enter the passcode 21545602.
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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