Cardium second-quarter net loss decreases to $0.7 million

Aug 10 2010

Cardium Therapeutics (NYSE Amex: CXM) today reported highlights and financial results for its second quarter ended June 30, 2010.  Highlights of the quarter and recent developments include:

• Agreement with Devro Medical Limited for the supply of highly-refined fibrillar bovine Type I collagen, an important component of Cardium's Excellagen product candidate, which is pending 510(k) clearance with the U.S. Food and Drug Administration (FDA).  In addition, Cardium is initiating activities associated with the commercial launch, including packaging and other final product requirements, and are in discussions with potential commercialization partners for the sale of Excellagen in the U.S. and internationally.   Excellagen has been developed for patients with dermal wounds, which can include diabetic ulcers, pressure ulcers, venous ulcers, tunneled/undermined wounds, surgical and trauma wounds, second degree burns, and other types of wounds;
• Report on the final analysis of data from the Matrix Phase 2b study which indicated that the Excellagen product candidate appeared to be both safe and well tolerated, and showed a statistically significant acceleration of wound healing (as measured by a reduction in wound radius) during the first two weeks following a one-time application compared to patients receiving standard of care therapy;
• Agreement with bioRASI, an international contract research organization, to assist the Company in a planned late-stage clinical study and commercialization activities for Cardium's cardiovascular biologic candidate, Generx®, in Russia and affiliated jurisdictions, as well as in potentially other newly industrializing markets.  Under the terms of the agreement, bioRASI will assist Cardium to conduct a late-stage clinical study to evaluate the efficacy and safety of Generx at up to three leading medical centers in Moscow and to assist the Company in commercialization activities in these international markets;
• Announcement that Dominique Dawes, an Olympic champion, has been named as the official web-based spokesperson for Cardium's MedPodium podiatry-focused advanced skin care line.  The MedPodium product line has been designed to promote foot health and comfort and to support preventative care, self examination and early detection of foot ulcers, especially for diabetic patients with lower extremity neuropathy.  MedPodium's initial products include advanced skin care products designed to provide a first line of defense for individuals at risk for foot ulcers and that will enhance and expand Cardium's podiatry- and wound care-focused product portfolio beyond the current Excellagen product candidate.  Following the initial MedPodium product launch, Cardium plans to broaden and expand its MedPodium's product line to include aesthetic-based products and other fitness and wellness products;
• Resolution of matters relating to Cardium's exchange listing compliance with NYSE Amex.  In the communication from NYSE Amex LLC, Cardium was informed that based upon a review of publicly available information, including the Company's Form 8-K filed on June 24, 2010,  the Company has resolved the continued listing deficiencies referenced in the NYSE Amex LLC's letter dated December 28, 2009, as previously reported.  In addition, the Exchange also indicated that as with the case for all listed issuers, the Company's continued listing eligibility will continue to be assessed on an ongoing basis and that the Company is subject to the provisions of Section 1009(h) of the NYSE Amex Company Guide; and
• Continued identification and evaluation of innovative and capital-efficient product opportunities and strategic partnership opportunities for the Company's current product candidates as they are advanced and corresponding valuations are established.

Financial Report

For the second quarter ended June 30, 2010, the Company reported a net loss of $0.7 million, or $(0.01) per share, compared to a net loss of $11.1 million, or $(0.24) per share for the same period in 2009.  For the six months ended June 30, 2010, net loss was $1.7 million, or $(0.03) per share, compared to a net loss of $25.9 million, or $(0.55) per share, for the same six month period in 2009.  The decrease in net loss was primarily due to a reduction in costs as a result of the completion of the Phase 2b clinical study for Cardium's Excellarate product candidate.  The second quarter 2010 financial results also include a $1.3 million favorable adjustment to income for the non-cash change in fair market value of certain common stock warrants we recorded as derivative liabilities upon the adoption of ASC 815 (formerly Emerging Issues Task Force EITF 07-05), recorded in  "Change in Fair Value of Derivative Liabilities."

Research and development costs for the three months ended June 30, 2010 totaled $0.6 million and general and administrative expenses were $1.4 million, compared to $1.1 million and $1.2 million, respectively, for the same period last year.

As of June 30, 2010, the Company had $9.9 million in cash compared to $3.4 million for the same period last year.  As of August 6, 2010, 77,852,154 shares of Cardium's common stock were outstanding.