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Arpida Ltd announced today its financial results for the six months ending 30 June 2009.
Key events 2009 to date
• Regulatory setback for intravenous iclaprim in cSSSI in U.S.A.
• Strategic options under review
• Company restructuring completed
Cash and financial investments of CHF 22.7 million at 30 June 2009
CFO Harry Welten, MBA, commented: “Our cost-saving measures have been implemented, resulting in a substantial reduction of the cash burn. We expect to have cash and financial investments of around CHF 14 million at the end of 2009.”
Dr Jürgen Raths, President and CEO, commented: “Arpida is going through challenging times. We’ve completed a painful restructuring process in anticipation of a possible strategic
deal. We remain fully committed to finding a strategic partner and securing the maximum value for our shareholders. Discussions are ongoing, as soon as these advance, we will
provide an update.”
Results
After a review of the TLT programme and business case, Arpida has decided it will terminate the current trial in the autumn of 2009. This decision has prompted a non-cash impairment
charge of CHF 3.6 million. This charge is included in the item ‘Research and development expenses’ in the first half of 2009. The ‘In-process R&D’ asset is now fully written-off. On the
other hand, the contingent obligation to pay a purchase consideration to the former owners of TLT Medical Ltd. upon achieving certain development milestones is no longer relevant.
This item was reversed, leading to a positive non-cash income effect of CHF 1.6 million. Overall, operating expenses were substantially below last year’s level, reflecting the effect of
the cost-saving measures taken earlier. The remaining ‘Research and development expenses’ concerned mainly the TLT item described above, costs related to the EMEA filing,
external consultants and expenses of the clinical studies with TLT, intravenous iclaprim in HAP/VAP/HCAP and oral iclaprim.
