SAN CARLOS, Calif., Oct. 30 /PRNewswire-FirstCall/ -- Nuvelo, Inc.
(NASDAQ:NUVO) today announced third quarter 2008 financial results
and accomplishments. For the third quarter ended September 30,
2008, Nuvelo reported a net loss of $8.5 million or $0.16 per
share, compared with net loss of $14.4 million or $0.27 per share
for the same period in 2007. For the nine months ended September
30, 2008, Nuvelo reported a net loss of $27.2 million or $0.51 per
share, compared with net loss of $0.7 million or $0.01 per share
for the same period in 2007. Net cash used in operating activities
was $10.8 million for the third quarter of 2008 and $38.2 million
for the first nine months of 2008. As of September 30, 2008, Nuvelo
had $65.1 million in cash and cash equivalents, marketable
securities and restricted cash. Revenues for both the third quarter
of 2008 and 2007 were $0.1 million. Revenues for the nine months
ended September 30, 2008 were $15.2 million, compared with revenues
of $46.8 million for the same period in 2007. $15.0 million of the
revenues for the nine months ended September 30, 2008 was a result
of the recognition of the termination payment received from Bayer
in June 2007. This payment had been recorded as deferred revenue
and was recognized as revenue in May 2008. $45.8 million of the
revenues recorded in the nine months ended September 30, 2007 was a
result of the termination of Nuvelo's collaboration agreement with
Bayer in June 2007. Nuvelo had originally recorded the $50.0
million up-front license fee that it received from Bayer in January
2006 as deferred revenue. Total operating expenses for the third
quarter of 2008 were $9.1 million, compared with $16.0 million for
the same period in 2007. Total operating expenses for the nine
months ended September 30, 2008 were $44.5 million, compared with
$52.6 million for the same period in 2007. Research and development
expenses were $5.4 million for the third quarter of 2008, compared
with $9.5 million for the same period in 2007. The decrease in
research and development expenses in 2008 was primarily
attributable to a decrease in personnel-related expenses as a
result of a reduction in headcount and decreased expenditures in
temporary and consulting services. General and administrative
expenses were $3.7 million for the third quarter of 2008, compared
with $4.2 million for the third quarter of 2007. The decrease in
general and administrative expenses in 2008 was primarily
attributable to a decrease in personnel-related expenses. Interest
income was $0.5 million for the third quarter of 2008, compared
with $1.6 million for the same period in 2007. Recent Corporate
Accomplishments -- Entered into a definitive merger agreement with
ARCA biopharma, Inc., expected to create a late-stage
cardiovascular focused biotechnology company with a near-term
commercial opportunity, Gencaro (bucindolol hydrochloride), as well
as a mid-stage pipeline asset, novel short-acting anticoagulant
NU172, to drive long-term growth; -- Completed and announced
positive top-line data from the Phase 1b bolus plus infusion trial
with NU172; and -- Initiated a Phase 1 single ascending dose (SAD)
trial with NU206 in healthy volunteers. "We believe that the
proposed merger with ARCA brings both immediate and longer-term
value to our stockholders, and enables us to become a late-stage
company with a near-term commercialization opportunity and a
promising cardiovascular pipeline," said Dr. Ted W. Love, chairman
and chief executive officer of Nuvelo. "During the remainder of the
year, we will remain focused on closing the transaction with ARCA
while continuing to drive our clinical programs forward." 2008
Guidance and Key Milestones Nuvelo is reiterating its prior
guidance for 2008 net cash used in operating activities to be in
the range of $43.0 to $48.0 million, and 2008 total operating
expenses to be in the range of $52.0 to $57.0 million. Nuvelo
anticipates accomplishing the following near-term milestones: --
Closing of the merger transaction with ARCA by the end of 2008 or
early 2009; -- Initiation of a Phase 2 trial with NU172 in CABG
procedures in the fourth quarter of 2008 or first quarter of 2009;
-- Trial completion and top-line data from the Phase 1 SAD trial
with NU206 in healthy volunteers in 2008; and -- Initiation of a
Phase 1b multiple ascending dose (MAD) trial with NU206 in healthy
volunteers in the fourth quarter of 2008 or first quarter of 2009.
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 NU172, a direct thrombin inhibitor which has completed
Phase 1 development for use as a potential short-acting
anticoagulant during medical or surgical procedures; and NU206, a
Wnt pathway modulator in Phase 1 development for the potential
treatment of chemotherapy/radiation therapy-induced mucositis and
inflammatory bowel disease. In addition, Nuvelo is pursuing
research programs in leukemia and lymphoma 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, without limitation, the anticipated benefits
of the merger with ARCA biopharma, Inc., or ARCA, timing, progress
and anticipated completion of the combined company's clinical stage
and research programs, including possible regulatory approval, the
potential benefits that patients may experience from the use of the
combined company's clinical stage compounds, and the cash position
of the combined company 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, failure of Nuvelo's or ARCA's stockholders to approve
the merger, the ability to complete the transaction contemplated by
this communication in a timely fashion, the risk that Nuvelo's and
ARCA's business operations will not be integrated successfully, the
combined company's inability to further identify, develop and
achieve commercial success for products and technologies, the risk
that the combined company's financial resources will be
insufficient to meet the combined company's business objectives,
uncertainties relating to drug discovery and the regulatory
approval process, 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,
and the impact of competitive products and technological changes.
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 10-Q for the quarter ended June
30, 2008 and subsequent filings. We disclaim any intent or
obligation to update these forward-looking statements. Additional
Information and Where to Find It Nuvelo has filed a registration
statement on Form S-4, and a related proxy
statement/prospectus/consent solicitation, in connection with the
proposed merger. Investors and security holders are urged to read
the registration statement on Form S-4 and the related proxy
statement/prospectus/consent solicitation. Investors and security
holders may obtain free copies of these documents and other
documents filed with the SEC at the SEC's website at
http://www.sec.gov/. In addition, investors and security holders
may obtain free copies of the documents filed with the SEC by
contacting Nuvelo Investor Relations at the email address: or by
phone at 650-517-8000. In addition to the registration statement
and related proxy statement/prospectus/consent solicitation, Nuvelo
files annual, quarterly and special reports, proxy statements and
other information with the SEC. You may read and copy any reports,
statements or other information filed by Nuvelo, Inc. at the SEC
public reference room at 100 F Street, N.E., Washington, D.C.
20549. Please call the SEC at 1-800-SEC-0330 for more information.
Please call the SEC at 1-800-SEC-0330 for further information on
the public reference room. Nuvelo, Inc.'s filings with the SEC are
also available to the public from commercial document-retrieval
services and at SEC's website at http://www.sec.gov/, and from
Investor Relations at Nuvelo as described above. This communication
shall not constitute an offer to sell or the solicitation of an
offer to sell or the solicitation of an offer to buy any
securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offering of securities
shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as
amended. Nuvelo, ARCA and their respective directors and executive
officers may be deemed to be participants in the solicitation of
proxies from the stockholders of Nuvelo in connection with the
merger transaction. Information regarding the special interests of
these directors and executive officers in the merger transaction is
included in the proxy statement/prospectus/consent solicitation
described above. Additional information regarding the directors and
executive officers of Nuvelo is also included in Nuvelo's proxy
statement for its 2008 Annual Meeting of Stockholders which was
filed with the SEC on April 23, 2008 and its Annual Report on Form
10-K for the year ended December 31, 2007, which was filed with the
SEC on March 12, 2008. These documents are available as described
above. NUVELO, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in
thousands, except per share data) (unaudited) Three Months Ended
Nine Months Ended September 30, September 30, 2008 2007 2008 2007
Contract revenues $63 $63 $15,188 $46,798 Operating expenses:
Research and development 5,407 9,494 24,555 33,452 General and
administrative 3,698 4,204 11,359 16,843 Restructuring - 2,336
2,470 2,336 Facility exit charge - - 1,472 - Impairment of goodwill
- - 4,671 - Total operating expenses 9,105 16,034 44,527 52,631
Operating loss (9,042) (15,971) (29,339) (5,833) Interest income,
net 524 1,613 2,182 5,168 Net loss $(8,518) $(14,358) $(27,157)
$(665) Basic and diluted net loss per share $(0.16) $(0.27) $(0.51)
$(0.01) Weighted average shares used in computing basic and diluted
net loss per share 53,616 53,361 53,536 53,310 CONSOLIDATED BALANCE
SHEET DATA (in thousands) (unaudited) September 30, December 31,
2008 2007* Cash and cash equivalents, marketable securities and
restricted cash $65,132 $103,567 Working capital 46,572 81,799
Total assets 75,399 120,683 Non-current liabilities 16,339 34,837
Accumulated deficit (497,670) (470,513) Total stockholders' equity
44,715 67,659 * The consolidated balance sheet data as of December
31, 2007 have been derived from the audited financial statements.
DATASOURCE: Nuvelo, Inc. CONTACT: Lee Bendekgey, SVP and Chief
Financial Officer of Nuvelo, Inc., +1-650-517-8358, ; or Danielle
Bertrand of WeissComm Partners, +1-415-946-1056, , for Nuvelo, Inc.
Web site: http://www.nuvelo.com/
Copyright
Holdco Nuvo Group DG (NASDAQ:NUVO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Holdco Nuvo Group DG (NASDAQ:NUVO)
Historical Stock Chart
From Jul 2023 to Jul 2024