Cardiome Reports 2006 Results



    NASDAQ:   CRME
    TSX: COM

    VANCOUVER, March 28 /CNW/ - Cardiome Pharma Corp. (NASDAQ:   CRME/TSX: COM)
today reported financial results for the fourth quarter and year ended
December 31, 2006. Amounts, unless specified otherwise, are expressed in
Canadian dollars and in accordance with Canadian Generally Accepted Accounting
Principles (Canadian GAAP). At close of business on December 31, 2006, the
exchange rate was CAD$1.00=US$0.8581.

    Summary Fiscal 2006 Results

    We recorded a net loss of $36.1 million ($0.68 per common share) for the
year ended December 31, 2006 compared to a net loss of $53.4 million ($1.09
per common share) for fiscal 2005. The decrease in net loss for fiscal 2006
was largely due to an increase in licensing fees primarily as a result of the
receipt of US$10 million from Astellas on reaching the re-submission of the
New Drug Application ("NDA") milestone, and the effects of the write-down of
intangible assets associated with the Oxypurinol CHF project of $23.3 million
during fiscal 2005. The decrease in net loss was partially offset by increased
costs associated with expanded clinical development activities, increased
general and administration costs to support those activities, lower research
collaborative fees from our collaborative partner, Astellas, and a decrease in
future income tax recovery also associated with the Oxypurinol write-down. The
results of operations were in line with management's expectations.
    Total revenue increased to $20.7 million in fiscal 2006 from
$16.1 million in fiscal 2005. Revenue in fiscal 2006 consisted of $14.0
million in licensing fees (fiscal 2005 - $4.7 million) and $6.7 million in
research collaborative fees (fiscal 2005 - $11.4 million).
    Research and development expenditures were $43.4 million for fiscal 2006,
comparable to the $41.5 million recorded for fiscal 2005. General and
administration expenses increased by $4.6 million to $13.9 million in fiscal
2006 from $9.3 million in fiscal 2005 due to the addition of personnel and
expanded business development activities. Amortization expense decreased by
$1.1 million to $1.6 million in fiscal 2006 from $2.7 million in fiscal 2005,
due to the write-down of intangible assets related to the Oxypurinol
development program in fiscal 2005. Stock-based compensation, a non-cash item
included in operating expenses, was $8.2 million for the year, as compared to
$5.8 million for 2005.

    Summary Fourth Quarter Results

    Net loss for the fourth quarter of 2006 was $1.3 million, or $0.02 per
share, compared to net loss of $8.6 million, or $0.17 per share for the same
period in 2005. The decrease in net loss was largely due to an increase in
licensing fees primarily as a result of the receipt of US$10 million from
Astellas on reaching the re-submission of the NDA milestone, partially offset
by increased research and development costs, increased general and
administration costs and lower research collaborative fees received from our
collaborative partner, Astellas.
    Research and development costs for the fourth quarter of 2006 were
$12.3 million, an increase of $3.4 million from $8.9 million in the same
period of 2005. The increase was primarily due to increased costs associated
with our Phase 2 clinical development program for vernakalant (oral). General
and administration expenses were $3.9 million, an increase of $0.7 million
from $3.2 million in the same period of 2005. The increase was largely due to
the addition of personnel and expanded business development activities. Other
income increased to $2.2 million for the quarter from $0.7 million in the same
period of 2005, largely due to foreign exchange gains resulting from
appreciation of the U.S. dollar in the fourth quarter of 2006. Stock-based
compensation, a non-cash item included in operating expenses, was $2.2 million
for the quarter, as compared to $1.4 million for the same period in 2005.

    Liquidity and Outstanding Share Capital

    As of December 31, 2006, the Company had cash, cash equivalents and
short-term investments of $55.6 million. As of December 31, 2006, the Company
had 53,888,202 common shares issued and outstanding, 4,913,952 common shares
issuable upon the exercise of outstanding stock options at a weighted-average
exercise price of $7.64 per share, and 55,502 common shares issuable upon the
exercise of outstanding warrants at a weighted-average exercise price of
US$5.10 per share.
    Subsequent to year-end, in January 2007 we completed a public offering of
9.2 million common shares at a price of $12.32 (US$10.50) per share for total
gross proceeds of $113.4 million (US$96.6 million).

    Conference Call Notification

    Cardiome will hold a teleconference and webcast on Wednesday, March 28,
2007 at 10:00am EST (7:00am PST). Please dial 1-866-250-4907 or 416-644-3427
to access the call. There will be a separate dial-in line for analysts on
which we will respond to questions at the end of the presentation. The webcast
can also be accessed through Cardiome's website at www.cardiome.com.
    Webcast and telephone replays of the conference call will be available
approximately two hours after the completion of the call through April 29,
2007. Please dial 877-289-8525 or 416-640-1917, and enter code 21224694
followed by the number sign to access the replay.

    About Cardiome Pharma Corp.

    Cardiome Pharma Corp. is a product-focused cardiovascular drug
development company with two clinical drug programs focused on atrial
arrhythmia (intravenous and oral dosing), and a pre-clinical program directed
at improving cardiovascular function.
    Vernakalant (iv) is the intravenous formulation of an investigational
drug being evaluated for the acute conversion of atrial fibrillation (AF).
Positive top-line results from two pivotal Phase 3 trials for vernakalant
(iv), called ACT 1 and ACT 3, were released in December 2004 and September
2005. An additional Phase 3 study evaluating patients with post-operative
atrial arrhythmia, called ACT 2, and an open-label safety study evaluating
recent-onset AF patients, called ACT 4, are ongoing. Cardiome's co-development
partner Astellas Pharma US, Inc. submitted a New Drug Application for
vernakalant (iv) in December 2006.
    Vernakalant (oral) is being investigated as a chronic-use oral drug for
the maintenance of normal heart rhythm following termination of AF. Cardiome
announced positive results from a Phase 2a pilot study for vernakalant (oral)
in September 2006.
    Cardiome is traded on the Toronto Stock Exchange (COM) and the NASDAQ
National Market (CRME).

    Forward-Looking Statement Disclaimer

    Certain statements in this press release contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995 or forward-looking information under applicable Canadian securities
legislation that may not be based on historical fact, including without
limitation statements containing the words "believe", "may", "plan", "will",
"estimate", "continue", "anticipate", "intend", "expect" and similar
expressions. Such forward-looking statements or information involve known and
unknown risks, uncertainties and other factors that may cause our actual
results, events or developments, or industry results, to be materially
different from any future results, events or developments expressed or implied
by such forward-looking statements or information. Such factors include, among
others, our stage of development, lack of product revenues, additional capital
requirements, risk associated with the completion of clinical trials and
obtaining regulatory approval to market our products, the ability to protect
our intellectual property, dependence on collaborative partners and the
prospects for negotiating additional corporate collaborations or licensing
arrangements and their timing. Specifically, certain risks and uncertainties
that could cause such actual events or results expressed or implied by such
forward-looking statements and information to differ materially from any
future events or results expressed or implied by such statements and
information include, but are not limited to, the risks and uncertainties that:
we may not be able to successfully develop and obtain regulatory approval for
vernakalant (iv) or vernakalant (oral) in the treatment of atrial fibrillation
or any other current or future products in our targeted indications; our
future operating results are uncertain and likely to fluctuate; we may not be
able to raise additional capital; we may not be successful in establishing
additional corporate collaborations or licensing arrangements; we may not be
able to establish marketing and sales capabilities and the costs of launching
our products may be greater than anticipated; we rely on third parties for the
continued supply and manufacture of vernakalant (iv) and vernakalant (oral)
and we have no experience in commercial manufacturing; we may face unknown
risks related to intellectual property matters; we face increased competition
from pharmaceutical and biotechnology companies; and other factors as
described in detail in our filings with the Securities and Exchange Commission
available at www.sec.gov and the Canadian securities regulatory authorities at
www.sedar.com. Given these risks and uncertainties, you are cautioned not to
place undue reliance on such forward-looking statements and information, which
are qualified in their entirety by this cautionary statement. All
forward-looking statements and information made herein are based on our
current expectations and we undertake no obligation to revise or update such
forward-looking statements and information to reflect subsequent events or
circumstances, except as required by law.

    
                    CONDENSED CONSOLIDATED BALANCE SHEETS

    -------------------------------------------------------------------------
                                                   December 31,  December 31,
    Expressed in thousands of Canadian dollars.           2006          2005
    Prepared in accordance with Canadian GAAP.        (audited)     (audited)
    -------------------------------------------------------------------------

    Cash and cash equivalents                      $    23,400   $     9,305
    Short-term investments                              32,172        64,651
    Amounts receivable                                   3,628         7,122
    Prepaid expenses                                       869         1,549
    -------------------------------------------------------------------------
    Total current assets                                60,069        82,627
    Property and equipment                               4,427         4,357
    Intangible assets                                    3,203         2,815
    Deferred financing costs                               892             -
    -------------------------------------------------------------------------
    Total assets                                   $    68,591   $    89,799
    -------------------------------------------------------------------------

    Current liabilities                            $    14,618   $    13,012
    Long-term portion of deferred leasehold
     inducement                                          1,120         1,291
    Future income tax liability                              -           289
    Shareholders' equity                                52,853        75,207
    -------------------------------------------------------------------------
    Total liabilities and shareholders' equity     $    68,591   $    89,799
    -------------------------------------------------------------------------

            CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT

    -------------------------------------------------------------------------
    Expressed in thousands
     of Canadian dollars
     (except share and          For the Three Months
     per share amounts).                Ended             For the Year Ended
                                  Dec 31,     Dec 31,     Dec 31,     Dec 31,
    Prepared in accordance          2006        2005        2006        2005
     with Canadian GAAP.      (unaudited) (unaudited)   (audited)   (audited)
    -------------------------------------------------------------------------
    Revenue
    Licensing fees            $   12,103  $    1,047  $   14,048  $    4,694
    Research collaborative
     fees                            978       1,994       6,620      11,426
    -------------------------------------------------------------------------
                              $   13,081  $    3,041      20,668      16,120
    -------------------------------------------------------------------------
    Expenses
    Research and development      12,324       8,909      43,433      41,470
    General and administration     3,932       3,228      13,923       9,259
    Amortization                     420         330       1,637       2,700
    Write-down of intangible
     assets                            -           -           -      23,320
    -------------------------------------------------------------------------
                                  16,676      12,467      58,993      76,749
    -------------------------------------------------------------------------

    Operating loss                (3,595)     (9,426)    (38,325)    (60,629)
    -------------------------------------------------------------------------
    Other income                   2,179         650       1,889          33
    -------------------------------------------------------------------------
    Loss before income taxes      (1,416)     (8,776)    (36,436)    (60,596)
    Future income tax recovery       107         139         289       7,221
    -------------------------------------------------------------------------
    Net loss for the period       (1,309)     (8,637)    (36,147)    (53,375)
    Deficit, beginning of
     period                     (180,271)   (136,796)   (145,433)    (92,058)
    -------------------------------------------------------------------------
    Deficit, end of period    $ (181,580) $ (145,433) $ (181,580) $ (145,433)
    -------------------------------------------------------------------------
    Basic and diluted loss
     per common share(1)      $    (0.02) $    (0.17) $    (0.68) $    (1.09)
    -------------------------------------------------------------------------
    Weighted average
     number of common shares
     outstanding              53,740,850  52,290,106  52,966,473  49,015,462
    -------------------------------------------------------------------------
    (1) Basic and diluted loss per common share based on the weighted average
        number of common shares outstanding during the period.
    




For further information:

For further information: Peter K. Hofman, Senior Director, Investor
Relations, (604) 676-6993 or Toll Free: 1-800-330-9928, Email:
phofman@cardiome.com


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890