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ARIAD Pharmaceuticals, Inc. (ARIA)
Q2 2010 Earnings Call
August 04, 2010 08:30 am ET
Maria Cantor - VP, CC and IR
Dr. Harvey Berger - Chairman and CEO
Ed Fitzgerald - SVP, CFO and Treasurer
Tim Clackson - SVP and CSO
Ryan Martins - Barclays Capital
Howard Liang - Leerink Swann
Bret Holley - Oppenheimer
» ARIAD Pharmaceuticals Inc. Q4 2008 Earnings Call Transcript
» ARIAD Pharmaceuticals, Inc. Q3 2008 Earnings Call Transcript
At this time, I would like to introduce Ms. Maria Cantor, ARIAD’s Vice President Corporate Communications and Investor Relations. Please go ahead.
Good morning and welcome to ARIAD’s investor call. This morning, we will report on financial results and corporate developments for the second quarter of 2010. Joining me for the call are Dr. Harvey Berger, our Chairman and Chief Executive Officer, Mr. Ed Fitzgerald, our Executive Vice President and Chief Financial Officer and Dr. Tim Clackson, our President of Research and Development And Chief Scientific Officer. Before we get started, I would like to state that during this call, we will be making forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Such statements are subject to factors, risks and uncertainties, such as those detailed in our Form 10-K for the year ended December 31, 2009 and other SEC filings that may cause actual results to differ materially from the results expressed or implied by such statements.
Now, I would like to turn the call over to Dr. Berger for this mornings opening remark.
Dr. Harvey Berger
Thank you very much Maria and good morning to everyone. I'm very pleased to report that we are making excellent progress in several key areas of the company and have major achievements from the second quarter of this year to talk about this morning.
First, we have completed most aspects of the transition of ridaforolimus to Merck as part of our restructured agreement with Merck and now it’s been made for the developments, manufacture and commercialization of ridaforolimus in oncology.
Non-channel areas for ridaforolimus transitioning including clinical research and operations, drug safety and drug management’s regulatory and quality and commercial operations are now largely transitioned to our colleagues at Merck.
Manufacturing operations is on track to be transitioned by end of this year. These successful transitions are enabling us to focus fully on advancing our other exciting product candidates forward.
We presented updated data from the ongoing Phase 1 trial of our investigational pan-BCR-ABL inhibitor. AP24534 or 534 in patients with advanced blood cancers primarily Chronic Myeloid Leukemia at the annual meeting of the American Society of Clinical Oncology in June.
These advanced and evolving data continued to service the basis for our pivotal Phase 2 clinical trial of 534, in patience with resistant and refractory CML or Philadelphia-chromosome positive acute lymphoblastic leukemia ALL, that we expect to begin this fall.
We are also moving expeditiously with IND enabling studies of our third internally discovered product candidate. Our investigational anaplastic lymphoma kinase or ALK inhibitor, AP26113.
And finally our balance sheet has remarkably strengthened as a result of the restructured agreement with Merck and we have the necessary funding to take us into the second half of 2011.
As a result, we are able to focus our corporate efforts on driving value for a pipeline product and in turn retaining key value for our shareholders.
Let’s start with our financials and an update on the second quarter from Ed Fitzgerald.
Thank you Harvey and good morning everyone. Let me refer you to our press release issued this morning for a summary of our financial results as of June 30th 2010.
For the second quarter of 2010, we reported net income of $159.3 million or $1.35 per share on a diluted basis. Compared to a net loss of $21 million or $0.24 per share for the second quarter of 2009.
For the six months period ended June 30 2010, the company reported net income of $136 million or $1.22 per share on a diluted basis. Compared to a net loss of $41.2 million or $0.50 per share for the same period 2009.
These results reflect the positive impact of ARIAD’s restructured agreement with Merck for the development, manufacture and commercialization of ridaforolimus that we announced this past May.
The agreement with Merck replaces the previously existing collaboration agreement that we entered into in 2007. Under this new license agreement Merck has assumed responsibility for all ridaforolimus activities including clinical trials and regulatory filings. Upon signing the agreement Merck made an up front cash payment of $50 million to ARIAD in the second quarter of this year.
And reimbursed ARIAD for ARIAD share of ridaforolimus expenses incurred from January 1 2010 to May 4, 2010, the effective date of the agreement. Merck is now responsible for funding 100% of ridaforolimus cost from May 4, 2010 and forward. The positive impact of the restructured agreement with Merck is reflected in our revenue and in our operating expenses for the three and six month’s period ended June 30, 2010.
We reported revenue of $175 million for the quarter ended June 30, 2010 as compared to $2.1 million for the same period in 2009. And a $177.2 million for the six month period ended June 30, 2010, as compared to $4 million for the same period in 2009.