IRVINE, Calif., May 8 /PRNewswire-FirstCall/ -- IDM Pharma, Inc. (Nasdaq: IDMI) today reported financial results for the quarter ended March 31, 2008. Financial information presented represents the consolidated results of IDM Pharma, Inc. and its subsidiary, IDM Pharma S.A.

Total revenues for the quarter were $2.4 million, and net loss was $12.1 million or $0.48 per share for the quarter. Expenses for the quarter included non-cash charges of $4.7 million related to the increase in fair value of the warrants issued in the Company's February and June 2007 financings, primarily as a result of the increase in the Company's' stock price during the quarter, and $0.9 million related to a foreign exchange loss, which resulted from changes in the value of the dollar versus the euro on the dollar denominated inter-company loan between the Company's subsidiaries. Cash and cash equivalents was $22.4 million as of March 31, 2008 compared to $28.4 million on December 31, 2007. The cash and cash equivalents amount at March 31, 2008 does not include $7.8 million (or 5.2 million euros) the Company received in April under a settlement agreement in connection with the termination of sanofi-aventis' participation in the UVIDEM development program. The Company believes it has adequate cash resources to support its operations into the first half of 2009, based on its current development and operating plans. As previously announced, the Company is evaluating its research and development programs, including related assets and costs, and strategic alternatives available to the Company.

"We continue to make progress in our efforts to bring our lead product candidate, L-MTP-PE, to market," said Timothy P. Walbert, president and chief executive officer, IDM Pharma. "In April, the European regulatory authorities conducted an inspection of the Children's Oncology Group (COG) to assess the quality of the overall survival data from the 2006 confirmatory database included in our applications for regulatory approval. We have also made progress on the two remaining chemistry, manufacturing and controls issues related to characterization of impurities in the active pharmaceutical product and extended stability of the product in its final reconstituted usage form, and expect to provide our responses and data regarding these issues to the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency in advance of its meeting scheduled for June 23-26. In the U.S., we continue to work with the COG in obtaining necessary patient follow up data to allow us to file the amendment to the new drug application (NDA) for L-MTP-PE by the end of this year."

Details of Financial Results

Total revenues in the quarter ended March 31, 2008 were $2.4 million, compared to total revenues of $2.8 million for the three months ended March 31, 2007. Substantially all of the revenues for both periods were derived from reimbursement of current and past research and development expenses and recognition of deferred revenue related to up-front fees and milestone payments received from sanofi-aventis under the terms of our collaboration agreement. As a result of sanofi-aventis' decision to terminate its participation in the UVIDEM development program in December 2007, no further such revenues related to UVIDEM will be recognized after this quarter.

Research and development (R&D) expenses decreased to $3.9 million for the three months ended March 31, 2008 from $5.3 million for the three months ended March 31, 2007. The decrease was primarily due to a $0.8 million reduction in spending related to clinical development of UVIDEM, which the Company placed on hold in December 2007 following sanofi-aventis' notification that it was discontinuing its participation in the development program, a $0.2 million decrease in spending associated with development activities related to other product candidates currently on hold, and a $0.9 million reduction associated with lower headcount and termination in 2007 of a lease agreement for certain of the Company's Paris facilities, partially offset by higher spending of $0.5 million related to regulatory filings and manufacturing of L-MTP-PE.

Selling and marketing and general and administrative (SG&A) expenses were $2.7 million and $3.1 million for the three months ended March 31, 2008 and 2007, respectively.