Palo Alto, California-based biopharmaceutical company CV Therapeutics has reported a net loss of $98.5 million, or $1.61 per share for the full year ended December 31, 2008, compared to a net loss of $181.0 million, or $3.05 per share, for the year ended December 31, 2007. This $1.44 per share reduction represents a 47 percent improvement in net loss from 2007 to 2008.
For the quarter ended December 31, 2008, the company reported a net loss of $37.0 million, or $0.60 per share. This compares to a net loss of $34.1 million, or $0.57 per share, for the same quarter in 2007.
For the quarter ended December 31, 2008, the company recorded total revenues of $41.9 million, which consisted of $31.5 million of net product sales of Ranexa, $10.1 million of royalty and license revenue and $0.3 million of collaboration, milestone and other revenue. The $10.1 million of royalty and license revenue includes $3.1 million of amortization of $175.0 million upfront payment earned from TPG-Axon Capital in exchange for rights to 50 percent of royalty on North American sales of Lexiscan® (regadenoson injection) by Astellas US LLC (Astellas), $5.4 million of royalty revenue earned under collaboration with Astellas and $1.6 million of amortization of our $70.0 million upfront license payment from the Menarini Group (Menarini) for the exclusive rights to Ranexa in the European Union and certain other countries.
For the full year ended December 31, 2008, the company recorded revenue of $154.5 million, consisting of $109.3 million of net product sales of Ranexa, $18.8 million of royalty and license revenue and $26.5 million of collaboration, milestone and other revenue. The $18.8 million of royalty and license revenue includes $8.9 million of amortization of $175.0 million upfront payment earned from TPG-Axon Capital, $8.0 million of royalty revenue earned under collaboration with Astellas and $1.9 million of amortization of $70.0 million upfront license payment from Menarini.
The $26.5 million of collaboration, milestone and other revenue includes a $12.0 million milestone payment from Astellas associated with the U.S. Food and Drug Administration (FDA) approval for Lexiscan®, a $10.0 million milestone payment from TPG-Axon Capital associated with the commercial launch of Lexiscan®, a $3.0 million milestone payment from Biogen Idec, Inc. received upon achievement of a development milestone related to their Adentri® program and $1.5 million of collaboration and other revenue primarily related to reimbursement of costs from collaborative partner Astellas for Lexiscan® in North America.
Dr. Louis Lange, chairman and chief executive officer of CV Therapeutics, said: "2008 was an exceptional year for CV Therapeutics and its shareholders, as we received three major regulatory approvals, retired more than $100 million in debt, completed two major strategic transactions bringing in more than $250 million in non-dilutive net cash, grew our Ranexa business by 64 percent year-over-year, and saw our share price outperform the NASDAQ by more than 40 percent.
"With the company's solid cash position, the full promotional launch of the improved U.S. Ranexa labeling and the imminent introduction of Ranexa in Europe, we expect 2009 to be another outstanding year, highlighted by increasing revenues and pipeline advancement with CVT-3619 and other programs. We expect to be able to provide an update regarding profitability timing by the middle of the year," Lange added.”
During 2008 the company retired $107.3 million face value of our convertible subordinated notes. The amount of 2% debt putable in 2010 has now been reduced to $39.7 million. Including this amount, the company ended the year with a convertible subordinated notes balance of $292.2 million. For these transactions, the company used approximately $74.5 million in cash and issued approximately 2.0 million shares of common stock in private exchanges and open market repurchases.
