Cardiome Pharma announces Q4 and full year 2013 results

Cardiome Pharma Corp. (NASDAQ: CRME / TSX: COM) today reported financial results for the fourth quarter and year ended December 31, 2013.  Amounts, unless specified otherwise, are expressed in U.S. dollars and in accordance with generally accepted accounting principles used in the United States (U.S. GAAP). All share and per share amounts reflect the one-for-five share consolidation that occurred on April 12, 2013.

Financial Results for 2013
Cardiome reported net income of $4.8 million ($0.37 income per share) for the year ended December 31, 2013, compared to a net loss of $18.3 million ($1.49 loss per share) for the year ended December 31, 2012.

Revenue for 2013 was $4.5 million, an increase of $3.7 million from $0.8 million in 2012. During Q3-2013, Cardiome began recognizing the full benefit of all BRINAVESS^TM sales worldwide. Prior to Q3-2013, Cardiome benefitted from the sale of BRINAVESS^TM in the form of royalties and promotional fees in connection with the collaboration and license agreements with Merck. As Cardiome completes the transition process for regulatory product rights and product distribution responsibility for BRINAVESS^TM, the company expects to have BRINAVESS^TM available to customers in all EU markets where Merck has previously sold the product by the end of the first half of 2014. Correvio's results of operations, including product sales of AGGRASTAT^TM, have also been included in our financial statements for periods subsequent to the completion of the acquisition.

Selling, general and administration (SG&A) expenditures for 2013 were $16.4 million compared to $9.5 million for 2012.  The increase is primarily due to the increase in costs associated with sales and marketing efforts to support the commercialization of BRINAVESS™ and AGGRASTAT™.

Research and development (R&D) expenditures were $0.5 million for 2013, as compared to $6.0 million for 2012. The decrease in R&D expenditures compared to the same period in 2012, was primarily due to the restructuring initiatives in Q3-2012 which eliminated Cardiome's internal research activities.

Acquisition costs of $1.5 million were related to the acquisition of Correvio. Acquisition costs consist of legal, consulting and accounting fees. The company did not have any acquisition costs in 2012.

Restructuring costs of $1.2 million in 2013 related to employee termination benefits incurred in our efforts to integrate Correvio's operations compared to $10.0 million incurred in 2012 which were primarily related to employee termination benefits associated with the company's 2012 workforce reduction initiatives.

Other income for 2013 was $21.6 million, compared to $7.6 million for 2012. The increase in other income in 2013 related primarily to the $20.8 million gain on the settlement of debt owed to Merck, partially offset by the corresponding decrease in interest expense.

Financial Results for the Fourth Quarter 2013
Cardiome reported net loss of $7.2 million ($0.53 loss per share) for the fourth quarter of 2013 (Q4-2013), as compared to net income of $7.7 million ($0.63 income per share) for the fourth quarter of 2012 (Q4-2012). The net loss in Q4-2013 was largely due to an increase in SG&A expenses incurred to support the commercialization of BRINAVESS™ and AGGRASTAT™. The net income in Q4-2012 was largely due to an $11.2 million gain on the settlement of debt owed to Merck.

Revenue for Q4-2013 was $3.9 million, an increase of $3.8 million from $0.1 million in 2012.

SG&A expenditures for Q4-2013 were $7.3 million, as compared to $2.2 million for Q4-2012.

Liquidity and Outstanding Share Capital
At December 31, 2013, the company had cash and cash equivalents of $11.0 million compared to $41.0 million at December 31, 2012.  On March 11, 2014, the company received CAD $15 million of gross proceeds from its Primary Offering. Cardiome currently intends to use the net proceeds of the Primary Offering for working capital and general corporate purposes, including to fund expansion of our sales and marketing efforts for BRINAVESS™ and AGGRASTAT™ in Europe and other parts of the world, for funding clinical development and regulatory costs of vernakalant (IV) and vernakalant (oral), and for advancement of Cardiome's business objectives.   As of March 26, 2014, the company had 16,520,072 common shares issued and outstanding and 1,140,912 common shares issuable upon the exercise of outstanding stock options at a weighted-average exercise price of CAD $4.44 per share.

Conference Call
Cardiome will hold a teleconference and webcast on Thursday, March 27, 2014 at 8:00 a.m. Eastern (5:00 a.m. Pacific). To access the conference call, please dial 416-764-8688 or 888-390-0546.  The webcast can be accessed through Cardiome's website at www.cardiome.com.