Cadence Pharmaceuticals reports net loss of $11.4 million for three months ended September 30, 2009

Cadence Pharmaceuticals, Inc. (Nasdaq: CADX), a biopharmaceutical company focused on in-licensing, developing and commercializing proprietary product candidates principally for use in the hospital setting, today reported financial results for the three and nine months ended September 30, 2009.

Based upon the Priority Review designation granted by the FDA for Cadence's New Drug Application (NDA) for Acetavance(TM) (intravenous acetaminophen), the company accelerated its commercial readiness activities during the third quarter of 2009. Commenting on the third quarter achievements, Ted Schroeder, President and CEO of Cadence stated, "We are extremely pleased with the progress we have made in building our commercial infrastructure, including the recruitment of a highly experienced commercial leadership team to launch Acetavance, if approved by the FDA."

Financial Results

For the three months ended September 30, 2009, Cadence reported a net loss of $11.4 million, or $0.23 per share, compared to a net loss of $13.7 million, or $0.36 per share, for the same period in 2008. Operating expenses for the three months ended September 30, 2009 decreased $2.4 million to $11.3 million, from the $13.7 million reported for the comparable period in 2008. The decline in operating expenses during the current year was primarily the result of a reduction in research and development costs as the company completed its clinical development program for Acetavance in early 2009 and submitted an NDA for this product candidate in May 2009. Further, in March 2009, the company discontinued the development program for its omiganan product candidate. Partially offsetting this reduction is an increase in sales and marketing expenses as the company focused significant resources on establishing its commercial infrastructure in preparation for the potential commercialization of Acetavance. More specifically, during the three months ended September 30, 2009, Cadence hired its sales management team for the potential launch of Acetavance, if approved, and is currently recruiting sales representatives contingent on FDA approval. Cadence also increased spending related to the development of marketing materials and programs during the three months ended September 30, 2009. In addition, general and administrative expenses increased during the current quarter primarily due to increased personnel costs, including an additional $0.6 million in stock-based compensation charges.

For the nine months ended September 30, 2009, Cadence reported a net loss of $30.2 million, or $0.63 per share, compared to a net loss of $43.1 million, or $1.18 per share, for the same period in 2008. Operating expenses for the nine months ended September 30, 2009 were $29.4 million, a decrease of $13.6 million from the $43.0 million reported for the comparable period in 2008. The decrease in current year expenses is primarily due to a reduction in research and development costs as a result of the company's discontinuation of the development program for its omiganan product candidate in March 2009, the completion of its clinical development program for Acetavance in early 2009, and the submission of its NDA for Acetavance in May 2009. Partially offsetting this reduction is an increase in sales and marketing expenses in 2009 as the company began establishing its commercial and supply operation functions in preparation for the potential commercialization of Acetavance. General and administrative expenses increased during the current year primarily due to increased personnel costs, including an additional $0.8 million in stock-based compensation charges.

As of September 30, 2009, Cadence held cash, cash equivalents and short-term investments of $96.6 million.