Idenix Pharmaceuticals Reports Third Quarter and Nine Month 2010 Financial Results

CAMBRIDGE, Mass., Oct. 29 /PRNewswire-FirstCall/ -- Idenix Pharmaceuticals, Inc. (Nasdaq: IDIX), a biopharmaceutical company engaged in the discovery and development of drugs for the treatment of human viral diseases, today reported unaudited financial results for the third quarter and nine months ended September 30, 2010. At September 30, 2010, Idenix's cash and cash equivalents totaled $37.0 million.

Third Quarter 2010 Financial Results

For the third quarter ended September 30, 2010, Idenix reported total revenues of $3.8 million, compared to total revenues of $3.1 million in the third quarter of 2009. The company reported a net loss of $12.9 million, or a loss of $0.18 per basic and diluted share, for the third quarter ended September 30, 2010, compared to a net loss of $ $11.7 million, or a loss of $0.18 per basic and diluted share for the third quarter ended September 30, 2009.

For the nine months ended September 30, 2010, Idenix reported total revenues of $7.8 million, compared to total revenues of $9.6 million for the nine months ended September 30, 2009. The company reported a net loss of $45.4 million, or a loss of $0.65 per basic and diluted share, for the nine months ended September 30, 2010, compared to a net loss of $40.9 million, or a loss of $0.68 per basic and diluted share, for the nine months ended September 30, 2009.

2010 Financial Guidance

The company expects that its current cash and cash equivalents, the anticipated royalty payments associated with product sales of Tyzeka®/Sebivo® (telbivudine) and its ability and intent to manage expenditures will be sufficient to satisfy our cash needs for at least the next 12 months. This guidance assumes no additional milestone payments, license fees, reimbursement for development programs and no financing activities.  

Regulatory Update

In September 2010, the U.S. Food and Drug Administration (FDA) placed two of our HCV drug candidates, IDX184 and IDX320, on clinical hold following a 14-day drug-drug interaction study of a combination of IDX184 and IDX320 in healthy volunteers. Idenix is working with the FDA to determine the next steps in the development of these drug candidates.

About Idenix

Idenix Pharmaceuticals, Inc., headquartered in Cambridge, Massachusetts, is a biopharmaceutical company engaged in the discovery and development of drugs for the treatment of human viral diseases. Idenix's current focus is on the treatment of patients with chronic hepatitis C infection. For further information about Idenix, please refer to www.idenix.com.

Forward-Looking Statements

This press release contains "forward-looking statements" for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995, including but not limited to the statements regarding the company's future business and financial performance. For this purpose, any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words "expect," "plans," "anticipates," "will," "expects," "goal," "estimates," "projects," "would," "could," "targets," and similar expressions are also intended to identify forward-looking statements, as are expressed or implied statements with respect to the company's clinical development programs or commercialization activities in hepatitis C, or any potential pipeline candidates, including any expressed or implied statements regarding the efficacy and safety of our drug candidates, the likelihood and success of any future clinical trials involving our drug candidates or successful development of novel combinations of direct-acting antivirals for the treatment of hepatitis C. Actual results may differ materially from those indicated by such forward-looking statements as a result of risks and uncertainties, including but not limited to the following: there can be no guarantees that the company will advance any clinical product candidate or other component of its potential pipeline to the clinic, to the regulatory process or to commercialization; management's expectations could be affected by unexpected regulatory actions or delays, including the current clinical hold on IDX184 and IDX320; uncertainties relating to, or unsuccessful results of, clinical trials, including additional data relating to the ongoing clinical trials evaluating its product candidates; the company's ability to obtain additional funding required to conduct its research, development and commercialization activities; the company's dependence on its collaborations with Novartis Pharma AG and GlaxoSmithKline; changes in the company's business plan or objectives; the ability of the company to attract and retain qualified personnel; competition in general; and the company's ability to obtain, maintain and enforce patent and other intellectual property protection for its product candidates and its discoveries. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. These and other risks which may impact management's expectations are described in greater detail under the heading "Risk Factors" in each of the company's annual report on Form 10-K for the year ended December 31, 2009 and quarterly report on form 10-Q for the quarter ended June 30, 2010, as filed with the Securities and Exchange Commission (SEC) and in any subsequent periodic or current report that the company files with the SEC.

All forward-looking statements reflect the company's estimates only as of the date of this release  (unless another date is indicated) and should not be relied upon as reflecting the company's views, expectations or beliefs at any date subsequent to the date of this release. While Idenix may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, even if the company's estimates change.

IDENIX PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)


Three Months Ended September 30,

Nine Months Ended September 30,


2010


2009


2010


2009


Revenues:









       Collaboration revenue – related party

$   3,424


$   2,840


$   6,366


$   8,937


       Other revenue      

364


267


1,421


631


           Total revenues  

3,788


3,107


7,787


9,568


Operating expenses (1):









       Cost of revenues

566


546


1,800


1,500


       Research and development

11,637


9,349


35,548


31,599


        General and administrative

4,440


5,207


14,308


16,579


       Restructuring charges

-


-


2,238


1,506


           Total operating expenses

16,643


15,102


53,894


51,184


Loss from operations

(12,855)


(11,995)


(46,107)


(41,616)


Other income (expense), net    

(76)


323


712


791


Loss before income taxes      

(12,931)


(11,672)


(45,395)


(40,825)


Income tax benefit (expense)    

1


5


(3)


(82)


Net loss      

$(12,930)


$(11,667)


$(45,398)


$(40,907)











Basic and diluted net loss per share:

($0.18)


($0.18)


($0.65)


($0.68)











Shares used in calculation of basic and diluted net loss per share:  

72,934


63,493


69,941


59,861











(1) Share-based compensation expenses included in operating expenses amounted to approximately:









       Research and development

$      308


$      363


$      942


$   1,210


       General and administrative

646


745


1,950


2,345





IDENIX PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS)

(UNAUDITED)



September 30,

December 31,



2010

2009





ASSETS



Cash and cash equivalents

$   37,020

$   46,519

Receivables from related party

1,069

1,049

Other current assets

3,725

4,012


Total current assets

41,814

51,580

Intangible asset, net

10,142

11,069

Property and equipment, net

7,658

10,091

Marketable securities

-

1,584

Other assets

3,475

2,326


Total assets

$   63,089

$   76,650





LIABILITIES AND STOCKHOLDERS' DEFICIT



Accounts payable and accrued expenses

$   12,603

$   10,720

Deferred revenue, related party

3,115

6,155

Other current liabilities

2,130

1,469


Total current liabilities

17,848

18,344

Long-term obligations

36,381

32,983

Deferred revenue, related party, net of current portion

30,113

30,776


Total liabilities

84,342

82,103

Stockholders' deficit

(21,253)

(5,453)


Total liabilities and stockholders' deficit

$   63,089

$   76,650



Idenix Pharmaceuticals Contacts:

Jonae Barnes (617) 224-4485 (investors)

Kelly Barry (617) 995-9033 (media)



SOURCE Idenix Pharmaceuticals, Inc.

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