Cardiome Pharma Corp. (NASDAQ: CRME) (TSX: COM) today reported financial results for the fourth quarter and year ended December 31, 2010. Amounts, unless specified otherwise, are expressed in U.S. dollars and in accordance with generally accepted accounting principles used in the United States of America (U.S. GAAP).
Summary Results for Fiscal 2010
We recorded a net income of $35.5 million ($0.58 basic and diluted income per common share) for the year ended December 31, 2010, compared to $2.4 million ($0.04 basic and diluted income per common share) for the year ended December 31, 2009. The increase of $33.1 million in net income was largely due to recognition of a $30.0 million milestone payment from Merck related to the marketing approval in Europe of vernakalant (iv) and payments from Merck pursuant to the 2009 collaboration and licence agreement. The deferred revenue related to the payments received in 2009 has been fully recognized in 2010. Further contributing to the increase in net income for 2010 were reductions in research and development expenditures and reductions in foreign exchange loss. This was partially offset by an increase in interest expense related to the long-term debt from Merck.
Total revenue for fiscal 2010 was $66.1 million, an increase of $15.9 million from $50.2 million in fiscal 2009.
Research and development expenditures were $15.3 million for fiscal 2010, as compared to $26.6 million for fiscal 2009. General and administration expenditures for fiscal 2010 were $12.9 million compared to $15.1 million for fiscal 2009. Amortization was $1.2 million for both fiscal 2010 and fiscal 2009. Net interest expense was $2.0 million for fiscal 2010, compared to insignificant interest income for fiscal 2009. Foreign exchange gain was $0.1 million for fiscal 2010 compared to a loss of $5.2 million for fiscal 2009.
Stock-based compensation, a non-cash item included in operating expenses, decreased to $3.3 million for fiscal 2010, as compared to $3.7 million for fiscal 2009.
Summary Results for the Fourth Quarter
Net loss for the fourth quarter of 2010 (Q4-2010) was $7.3 million ($0.12 basic and diluted per common share), as compared to net income of $12.1 million ($0.20 basic and diluted per common share) for the fourth quarter of 2009 (Q4-2009). The net income in Q4-2009 reflected revenue recognized from the payments from Merck pursuant to the collaboration and license agreement. The deferred revenue related to such payments was fully recognized during the first half of fiscal 2010.
Total revenue for Q4-2010 was $0.3 million, as compared to $23.4 million in Q4-2009. Total research and development expenditures for Q4-2010 were $4.4 million, as compared to $5.8 million for Q4-2009. The decreased revenue in Q4-2010, as compared with Q4-2009 was partially offset by lower R&D expenditures and foreign exchange loss.
Liquidity and Outstanding Share Capital
At December 31, 2010, the Company had cash and cash equivalents of $76.9 million. As of March 10, 2011, the Company had 61,129,091 common shares issued and outstanding and 5,015,002 common shares issuable upon the exercise of outstanding stock options at a weighted-average exercise price of CAD $7.53 per share.
Feeling lonely? It may affect how your brain reacts to food, new research suggests