IRVINE, Calif., May 11 /PRNewswire-FirstCall/ -- IDM Pharma, Inc.
(NASDAQ: IDMI) today reported financial results for the quarter
ended March 31, 2009. Financial information presented represents
the consolidated results of IDM Pharma, Inc. and its subsidiary,
IDM Pharma S.A. Cash and cash equivalents was $7.4 million as of
March 31, 2009 compared to $12.8 million on December 31, 2008. In
order to focus on those areas we believe can provide the most near
term value to our stockholders and to ensure we have adequate cash
to complete our review of strategic options for the Company, we
continued to concentrate our efforts during the quarter on certain
MEPACT pre-launch commercial activities in Europe and the review of
such strategic options, including merger or acquisition
opportunities, which may involve a change in control of our
Company. During the first quarter, we placed the U.S. mifamurtide
NDA amendment submission on hold until we complete our strategic
review, which will allow us to operate into the third quarter of
2009. We have engaged JMP Securities, LLC, an investment bank, to
advise us in exploring alternatives available to us with respect to
a possible merger or acquisition transaction. "We made good
progress in our pre-launch activities for MEPACT in Europe during
the first quarter," said Timothy P. Walbert, president and chief
executive officer, IDM Pharma. "We continue to focus on MEPACT
pre-launch activities while working with our financial advisor to
complete our strategic review process to enhance shareholder
value." Quarter Ended March 31, 2009 Total revenues in the quarter
ended March 31, 2009 were $4,000, compared to total revenues of
$2.4 million for the three months ended March 31, 2008. Revenues
for the three months ended March 31, 2009 were from amortization of
deferred revenues related to distribution agreements, while
substantially all of the revenues during the three months ended
March 31, 2008 were generated from our research and development
activities under our collaboration agreement with sanofi-aventis
for the UVIDEM program. 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 were
recognized after the first quarter of 2008. Research and
development (R&D) expenses decreased to $3.0 million for the
three months ended March 31, 2009 from $3.9 million for the three
months ended March 31, 2008. The decrease was primarily due to a
$0.8 million reduction in spending related to clinical development
of UVIDEM, which we placed on hold in December 2007 following
sanofi-aventis' notification that it was discontinuing its
participation in the development of the program, $0.2 million in
savings due to the closing of our Paris facility, and $0.2 million
of decreased spending associated with development activities
related to products currently on hold, partially offset by higher
spending of $0.3 million related to regulatory filings and
manufacturing of MEPACT clinical supplies for our compassionate use
program. Selling, marketing, general and administrative (SG&A)
expenses were $1.8 million and $2.7 million for the three months
ended March 31, 2009 and 2008, respectively. Expenses for the 2009
period were lower primarily due to $0.5 million savings from the
closing of our Paris facility, a $0.2 million reduction in
consulting fees and a decrease of $0.2 million in stock
compensation expense during the 2009 period. Restructuring expenses
were $2.6 million for the three months ended March 31, 2008, which
included $2.3 million of severance benefits and $0.3 million of
shutdown costs related to the closing of our facility in Paris,
France. There were no restructuring expenses in 2009 as we recorded
all charges related to the January 2008 restructuring plan as of
December 31, 2008. Interest income for the three months ended March
31, 2009 and 2008 was $28,000 and $0.2 million, respectively. The
decrease in interest income during the 2009 period was due to lower
average investment balances and lower rates of return. Interest
expense related to warrants for the three months ended March 31,
2009 and 2008 was $0.5 million and $4.7 million, respectively,
substantially all of which was non-cash interest expense to record
the net change in the fair value of warrants issued in connection
with the February and June 2007 financings. The lower increase in
the fair value during the 2009 period is primarily due to a smaller
increase in our stock price during the 2009 period compared to the
2008 period. For the three months ended March 31, 2009, the Company
recorded a foreign exchange gain of $0.1 million compared to a loss
of $0.9 million for the three months ended March 31, 2008 in
connection with the inter-company loan between its subsidiaries.
The gain in 2009 was due to the decrease in the exchange rate
between the U.S. dollar and the euro with no change to the
inter-company loan balance during the quarter ended March 31, 2009,
compared to an increase in the exchange rate between the U.S.
dollar and the euro with a decreasing inter-company loan balance
during the quarter ended March 31, 2008. Net loss for the quarter
ended March 31, 2009 was $5.2 million, or $0.20 per basic and
diluted share, compared to a net loss of $12.1 million, or $0.48
per share in the corresponding period in 2008. About IDM Pharma IDM
Pharma is focused on the development of innovative cancer products
that either destroy cancer cells by activating the immune system or
prevent tumor recurrence by triggering a specific adaptive immune
response. IDM Pharma is dedicated to maximizing the full
therapeutic and commercial potential of each of its innovative
products to address the needs of patients and the physicians who
treat these patients. For more information about the company and
its products, visit http://www.idm-pharma.com/. Forward-Looking
Statements This press release includes forward-looking statements
that reflect management's current views of future events including
statements regarding the Company's ability to deliver near-term
value to its stockholders, completion of pre-launch activities and
marketing of MEPACT in the EU, the timeframe in which the Company's
cash will be sufficient to meet planned operations and whether the
Company has adequate cash to complete its review of strategic
options, the Company's belief that the data from the mifamurtide
Phase 3 study warrants regulatory approval of mifamurtide from an
overall clinical benefit/risk standpoint in the United States,
whether MEPACT will ultimately become available for patient
treatment in the EU and the Company's plans to evaluate strategic
alternatives and/or raise additional capital. Actual results may
differ materially from the forward-looking statements due to a
number of important factors, including, but not limited to, whether
the Company elects to secure sales and marketing infrastructure for
MEPACT in the EU, the timing of filing an amended NDA with the FDA,
the possibility that additional data from the Phase 3 clinical
trial of mifamurtide and other information in any amendment to the
NDA for mifamurtide submitted by the Company may not provide
adequate support for regulatory approval of mifamurtide in the U.S.
within the timeframe expected by the Company, if at all, whether
the Company will be able to complete any potential strategic
transaction on terms acceptable to the Company's stockholders, how
the volatile economic environment will affect the Company's efforts
to complete a strategic transaction or raise additional capital,
and whether the cash resources of the Company will be sufficient to
fund operations as planned. These and other risks affecting the
Company and its drug development programs, intellectual property
rights, personnel and business are more fully discussed in the
Company's annual report on Form 10-K, quarterly reports on Form
10-Q and other filings made with the SEC. The Company expressly
disclaims any intent or obligation to update these forward-looking
statements, except as required by law. IDM PHARMA, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months
Ended March 31, 2009 2008 ---- ---- Revenues: Related party revenue
$- $2,401,000 License fees, milestones and other revenues 4,000
4,000 ----- ----- Total revenues 4,000 2,405,000 Costs and
expenses: Research and development 3,020,000 3,902,000 Selling and
marketing 488,000 150,000 General and administrative 1,329,000
2,591,000 Restructuring expense - 2,576,000 --- --------- Total
costs and expenses 4,837,000 9,219,000 Loss from operations
(4,833,000) (6,814,000) Interest income 28,000 238,000 Interest
expense related to warrants (514,000) (4,728,000) Foreign exchange
gain (loss) 137,000 (852,000) ------- --------- Loss before income
tax (5,182,000) (12,156,000) Income tax benefit 17,000 20,000
------ ------ Net loss $(5,165,000) $(12,136,000) ===========
============ Weighted average number of shares outstanding
25,865,082 25,162,411 ---------- ---------- Basic and diluted loss
per share $(0.20) $(0.48) ====== ======= Comprehensive loss: Net
loss (5,165,000) (12,136,000) Other comprehensive (loss) gain
(746,000) 1,422,000 -------- --------- $(5,911,000) $(10,714,000)
=========== ============ IDM PHARMA, INC. CONDENSED CONSOLIDATED
BALANCE SHEETS (unaudited) March 31, December 31, 2009 2008 ----
---- ASSETS Current assets: Cash and cash equivalents $7,371,000
$12,752,000 Other current assets 1,252,000 755,000 ---------
------- Total current assets 8,623,000 13,507,000 Property and
equipment, net 215,000 242,000 Patents, trademarks and other
licenses, net 2,373,000 2,642,000 Goodwill 2,812,000 2,812,000
Other long-term assets 449,000 473,000 ------- ------- Total Assets
$14,472,000 $19,676,000 =========== =========== LIABILITIES AND
STOCKHOLDERS' EQUITY Common stock warrants $4,034,000 $3,522,000
Other current liabilities 5,812,000 5,794,000 Other liabilities
1,184,000 1,211,000 Stockholders' equity 3,442,000 9,149,000
--------- --------- Total liabilities and stockholders' equity
$14,472,000 $19,676,000 =========== =========== DATASOURCE: IDM
Pharma, Inc. CONTACT: Bob De Vaere, Chief Financial Officer of IDM
Pharma, Inc., +1-949-470-6447; or Geoff Curtis of WeissComm
Partners, +1-312-550-8138, , for IDM Pharma, Inc. Web Site:
http://www.idm-pharma.com/
Copyright