SAN CARLOS, Calif., Nov. 1 /PRNewswire-FirstCall/ -- Nuvelo, Inc. today announced third quarter 2007 financial results and accomplishments.
For the third quarter ended September 30, 2007, Nuvelo reported a net loss of $14.4 million or $0.27 per share compared with a net loss of $26.7 million or $0.51 per share for the same period in 2006. For the nine months ended September 30, 2007, Nuvelo reported a net loss of $0.7 million or $0.01 per share, compared with a net loss of $65.2 million or $1.28 per share for the same period in 2006.
As of September 30, 2007, Nuvelo had $117.3 million in cash and cash equivalents, short-term investments and restricted cash. Net cash used in operating activities was $1.5 million for the third quarter of 2007 and $32.3 million for the first nine months of 2007, which reflects the $15.0 million received from Bayer in the third quarter of 2007 related to the termination of the 2006 collaboration agreement between Nuvelo and Bayer. The $15.0 million is included in the balance sheet as deferred revenue and will not be recognized as revenue until Bayer decides whether to re-enter into its alfimeprase collaboration with Nuvelo at the time of Nuvelo’s initiation of a pivotal trial in stroke.
Revenues for the third quarter of 2007 were $0.1 million, compared with revenues of $0.9 million for the same period in 2006. Revenues for the nine months ended September 30, 2007 were $46.8 million, compared with revenues of $3.0 million for the same period in 2006. The increase in revenues for the nine months ended September 30, 2007 was due to the recognition of $45.8 million of the $50.0 million up-front license fee received from Bayer in January 2006 as a result of the termination of the collaboration agreement in June 2007. The up-front license fee was originally recorded as deferred revenue upon receipt and was being recognized on a straight-line basis over the performance period under the agreement.
Total operating expenses for the third quarter of 2007 were $16.0 million, compared with $29.7 million for the same period in 2006. Total operating expenses for the nine months ended September 30, 2007 were $52.6 million, compared with $74.0 million for the same period in 2006.
Research and development expenses were $9.5 million for the third quarter of 2007 compared with $23.1 million for the same period in 2006, net of collaboration partner cost sharing credits of $0.3 million and $8.1 million, respectively. The decrease in net R&D expenses in 2007 was primarily due to a decrease in spending on alfimeprase as a result of the refocusing of the company’s alfimeprase development programs. Non-cash employee stock-based compensation included in research and development expenses totaled $0.8 million and $1.1 million in the third quarter of 2007 and 2006, respectively.
General and administrative expenses were $4.2 million for the third quarter of 2007 compared with $6.6 million for the same period in 2006. The decrease in G&A expenses was primarily due to decreased personnel costs, commercialization-related expenses for alfimeprase and occupancy costs. Non-cash employee stock-based compensation included in general and administrative expenses totaled $1.2 million and $1.3 million in the third quarter of 2007 and 2006, respectively.
Restructuring expenses were $2.3 million for the third quarter of 2007 and resulted from a reduction in workforce intended to realign the Company’s organization. Included in the restructuring expenses were $1.4 million of termination benefits and $0.9 million of non-cash stock-based compensation.
Interest income was $1.6 million for the third quarter of 2007, compared with $2.2 million for the same period in 2006. The decrease was primarily due to a reduction in the Company’s cash and investment balances.
“We are making progress with our programs and look forward to initiating two new Phase 1 programs and sharing data from a number of our ongoing and completed trials over the next several months,” said Dr. Ted W. Love, chairman and chief executive officer of Nuvelo. “We are focused on driving our business forward and building value through execution.”
2007 Guidance and Upcoming Milestones
For the full year 2007, Nuvelo expects operating expenses to be in the range of $65.0 to $70.0 million, and net cash used in operating activities to be in the range of $45.0 to $50.0 million.
In the remainder of 2007 and into 2008, Nuvelo anticipates accomplishing the following:
Conference Call Information
Nuvelo will hold a conference call today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss this announcement. To participate in the conference call, please dial 888-680-0894 for domestic callers and 617-213-4860 for international callers and reference conference passcode, 12660108. A telephone replay of the conference call will be available through Thursday, November 15, 2007. To access the replay, please dial 888-286-8010 for domestic callers and 617-801-6888 for international callers and reference conference passcode, 37585014. In addition, this call is being webcast by Thomson/CCBN and can be accessed at Nuvelo’s website at http://www.nuvelo.com.
The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at http://www.earnings.com, Thomson’s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (http://www.streetevents.com), a password-protected event management site.
About Nuvelo
Nuvelo, Inc. is dedicated to improving the lives of patients through the discovery, development and commercialization of novel drugs for acute cardiovascular disease, cancer and other debilitating medical conditions. Nuvelo’s development pipeline includes alfimeprase, a direct acting fibrinolytic in Phase 2 clinical development for the treatment of thrombotic-related disorders including acute ischemic stroke and catheter occlusion; and preclinical candidates NU206 for the potential treatment of chemotherapy/radiation therapy-induced mucositis and inflammatory bowel disease and NU172, a direct thrombin inhibitor for use as a potential short-acting anticoagulant during medical or surgical procedures. In addition, Nuvelo expects to continue its research programs in leukemia therapeutic antibodies and Wnt signaling pathway therapeutics to further expand its pipeline and create additional partnering and licensing opportunities.
Information about Nuvelo is available at our website at http://www.nuvelo.com or by phoning 650-517-8000.
This press release contains “forward-looking statements,” which include statements regarding our anticipated use of cash in fiscal years 2007 and beyond, our anticipated financial results in the fiscal year 2007, the timing and progress of Nuvelo’s clinical stage and research programs, the potential benefits that patients may experience from the use of our clinical stage compounds, which statements are hereby identified as “forward-looking statements” for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Such statements are based on our management’s current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including, without limitation, uncertainties relating to drug discovery; clinical development processes; enrollment rates for patients in our clinical trials; changes in relationships with strategic partners and dependence upon strategic partners for the performance of critical activities under collaborative agreements; stock market conditions; the impact of competitive products and technological changes; and uncertainties relating to our ability to obtain funding. These and other factors are identified and described in more detail in Nuvelo’s filings with the SEC, including without limitation Nuvelo’s quarterly report on Form 10Q for the quarter ended June 30, 2007 and subsequent filings. We disclaim any intent or obligation to update these forward-looking statements.
CONTACT: Lee Bendekgey, SVP, CFO and General Counsel of Nuvelo, Inc.,
+1-650-517-8358, lbendekgey@nuvelo.com; or Nicole Foderaro of WeissComm
Partners, +1-415-946-1058, nfoderaro@wcpglobal.com, for Nuvelo, Inc.
Web site: http://www.nuvelo.com/
