Cardiome Pharma reports net loss of $7.4 million in second quarter 2015

Cardiome Pharma Corp. (NASDAQ: CRME / TSX: COM) today reported financial results for the second quarter and six months ended June 30, 2015. 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
Cardiome recorded a net loss of $7.4 million (loss per share of $0.43) for the three months ended June 30, 2015, compared to a net loss of $4.2 million (loss per share of $0.26) for the three months ended June 30, 2014. On a year-to-date basis, Cardiome recorded a net loss of $11.2 million (loss per share of $0.66) for the six months ended June 30, 2015, compared to a net loss of $7.4 million (loss per share of $0.46) for the six months ended June 30, 2014. The increase in the net loss during the second quarter of 2015 was largely due to a $3.0 million payment to SteadyMed Ltd. upon execution of an exclusive license and supply agreement for the commercialization of TREVYENT^® in Europe, Canada and the Middle East.

Revenue for the three months ended June 30, 2015 was $5.7 million, compared to revenue of $7.7 million for the three months ended June 30, 2014. Revenue for the six months ended June 30, 2015 and 2014 was $11.2 million and $15.3 million, respectively. The decreases in each period were due primarily to the timing of distributor sales, a decrease in AGGRASTAT^® sales due to generic competition and foreign exchange translation on Euro denominated revenue.

Gross margin, excluding licensing, royalty and other fees, increased to 79.8% and 78.7% for the three and six months ended June 30, 2015, respectively, from 70.7% and 75.5% in the same periods of 2014. Gross margin increased primarily due to changes in customer mix as well as a decrease in current period supply chain restructuring costs. Gross margin may vary significantly quarter to quarter depending on shipments to specific customers in that quarter.

Selling, general and administration (SG&A) expense for the three months ended June 30, 2015 decreased $0.4 million to $8.4 million, compared to $8.8 million for the three months ended June 30, 2014. The decrease is primarily due to foreign exchange translation on primarily our Canadian and Euro denominated expenses. On a year-to-date basis, SG&A expense decreased to $14.7 million for the six months ended June 30, 2015, from $16.8 million in the same period in 2014. The decrease was due primarily to the current period reversal of certain one-time expenditures accrued in prior quarters, one-time costs incurred in the prior year related to the acquisition of Correvio, and the impact of foreign exchange translation.

Research and development ("R&D") expense for both the three and six months ended June 30, 2015 was $3.1 million compared to R&D expense for the three and six months ended June 30, 2014 of $0.1 million and $0.3 million, respectively. The increase was due primarily to the $3.0 million upfront payment to SteadyMed Ltd. upon the execution of the license and supply agreement for TREVYENT.

Interest expense increased to $0.6 million for the three months ended June 30, 2015 from $0.2 million for the three months ended June 30, 2014. For the six months ended June 30, 2015, interest expense was $1.2 million, compared to $0.5 million for the six months ended June 30, 2014. The increases were primarily due to interest expense incurred on the senior secured term loan facility that we entered into in July 2014.

Liquidity and Outstanding Share Capital

At June 30, 2015, the company had cash and cash equivalents of $7.6 million. As of August 4, 2015, the company had 17,243,580 common shares issued and outstanding and 1,487,554 common shares issuable upon the exercise of outstanding stock options at a weighted-average exercise price of CAD $5.78 per share, and 147,098 restricted share units outstanding.

On July 28, 2015, the company announced that it entered into an agreement with a syndicate of underwriters who have agreed to purchase, on a bought deal basis, 1,875,000 common shares from the treasury of the company at a price of US$8.00 per share for gross proceeds of US$15.0 million. The company granted the underwriters an over-allotment option to purchase up to an additional 281,250 shares at US$8.00 per share, exercisable for a period of 30 days after closing. On July 29, 2015, the company increased the size of the bought deal to 2,500,000 common shares for gross proceeds of US$20.0 million. The over-allotment option was proportionately increased up to 375,000 shares to reflect the increased size of the bought deal. If the over-allotment option is exercised in full, the aggregate gross proceeds would be US$23.0 million. The net proceeds of the offering are expected to be used for business development and growth opportunities, including potential product licensing opportunities, the advancement of our other business objectives, working capital and general corporate purposes. The offering is subject to customary closing conditions.

Conference Call

Cardiome will hold a teleconference and webcast on Wednesday, August 5, 2015 at 8:00 am Eastern (5:00 am Pacific).

SOURCE Cardiome Pharma Corp.