Idenix Pharmaceuticals, Inc.
Feb 25, 2013

Idenix Pharmaceuticals Reports Fourth Quarter and Year Ended 2012 Financial Results

CAMBRIDGE, Mass., Feb. 25, 2013 (GLOBE NEWSWIRE) -- Idenix Pharmaceuticals, Inc. (Nasdaq:IDIX), a biopharmaceutical company engaged in the discovery and development of drugs for the treatment of human viral diseases, today reported unaudited financial results for the fourth quarter and year ended December 31, 2012.

HCV Pipeline and Business Review

IDX719, NS5A Inhibitor Program

Nucleotide Inhibitor Program

"In 2013, one of our primary goals is to generate IDX719 data in all-oral combination therapies, initially through collaborations beginning in the first half of the year, and subsequently with our own nucleotide prodrug by year end. Also, we have an intensive, rapidly accelerating nucleotide discovery effort and are on track to file one IND from this program in the first half of 2013 and at least one additional IND by the end of the year," said Ron Renaud, Idenix's President and Chief Executive Officer. "With promising candidates from two HCV classes advancing in the clinic by the end of the year, we believe we will be in a good position to evaluate multiple all-oral combination therapies for HCV."

Fourth Quarter and Year Ended 2012 Financial Results

For the fourth quarter ended December 31, 2012, Idenix reported total revenues of $0.3 million, compared to total revenues of ($0.7) million in the fourth quarter of 2011. The Company reported a net loss of $22.7 million, or $0.17 per basic and diluted share, for the fourth quarter ended December 31, 2012, compared to a net loss of $18.1 million, or $0.18 per basic and diluted share for the fourth quarter ended December 31, 2011.

For the year ended December 31, 2012, Idenix reported total revenues of $69.7 million, compared to total revenues of $7.0 million for the year ended December 31, 2011. The Company reported a net loss of $32.4 million, or $0.27 per basic and diluted share, for the year ended December 31, 2012, compared to a net loss of $52.0 million, or $0.57 per basic and diluted share for the year ended December 31, 2011. The change in net loss is mainly due to additional revenue as a result of the recognition of $36.1 million of deferred revenue in the first quarter of 2012 related to the termination of the license agreement with ViiV Healthcare Company and $27.1 million of additional revenue recognized in the third quarter of 2012 as a result of the restructuring of our collaboration with Novartis Pharma AG in July 2012. These amounts were offset by increases in research and development expenses of $28.8 million related primarily to IDX184 and IDX719, professional and legal costs of $7.1 million and an $8.0 million intangible asset impairment charge in the third quarter of 2012 related to the termination agreement with Novartis.

2013 Financial Guidance

At December 31, 2012, Idenix's cash and cash equivalents totaled $230.8 million. The Company expects that its current cash and cash equivalents will be sufficient to sustain its operations into at least the second half of 2014. This guidance assumes no milestone payments, license fees, reimbursement for development programs and no financing activities.

ABOUT IDENIX

Idenix Pharmaceuticals, Inc., headquartered in Cambridge, Massachusetts, is a biopharmaceutical Company engaged in the discovery and development of drugs for the treatment of human viral diseases. Idenix's current focus is on the treatment of patients with hepatitis C infection. For further information about Idenix, please refer to www.idenix.com.

FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995, including but not limited to the statements regarding the Company's future business and financial performance. For this purpose, any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words "expect," "plans," "anticipates," "intends," "will," and similar expressions are also intended to identify forward-looking statements, as are expressed or implied statements with respect to the Company's potential pipeline candidates, including any expressed or implied statements regarding the efficacy and safety of IDX719 or any other drug candidate; the successful development of novel combinations of direct-acting antivirals for the treatment of HCV; the likelihood and success of any future clinical trials involving IDX719 or our other drug candidates; and expectations with respect to funding of operations and future cash balances. Actual results may differ materially from those indicated by such forward-looking statements as a result of risks and uncertainties, including but not limited to the following: there can be no guarantees that the Company will advance any clinical product candidate or other component of its potential pipeline to the clinic, to the regulatory process or to commercialization; management's expectations could be affected by unexpected regulatory actions or delays; uncertainties relating to, or unsuccessful results of, clinical trials, including additional data relating to the ongoing clinical trials evaluating its product candidates; the Company's ability to obtain additional funding required to conduct its research, development and commercialization activities; the Company's expectations regarding the benefits of the restructuring of its collaboration with Novartis; changes in the Company's business plan or objectives; the ability of the Company to attract and retain qualified personnel; competition in general; and the Company's ability to obtain, maintain and enforce patent and other intellectual property protection for its product candidates and its discoveries. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. These and other risks which may impact management's expectations are described in greater detail under the heading "Risk Factors" in the Company's annual report on Form 10-K for the year ended December 31, 2011, and the quarterly report on Form 10-Q for the quarter ended September 30, 2012, each as filed with the Securities and Exchange Commission (SEC) and in any subsequent periodic or current report that the Company files with the SEC.

All forward-looking statements reflect the Company's estimates only as of the date of this release  (unless another date is indicated) and should not be relied upon as reflecting the Company's views, expectations or beliefs at any date subsequent to the date of this release. While Idenix may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, even if the Company's estimates change.

 
IDENIX PHARMACEUTICALS, INC.
         
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
         
(IN THOUSANDS, EXCEPT PER SHARE DATA)
         
(UNAUDITED)
         
  Three Months Ended
December 31,
Years Ended
December 31,
  2012 2011 2012 2011
Revenues:        
Collaboration revenue — related party $  327 $ (1,387) $ 33,595 $ 4,328
Other revenue  -----     655  36,068   2,623
Total revenues  327 (732) 69,663 6,951
Operating expenses (1):        
Cost of revenues 352 593 2,654 2,324
Research and development 17,578 12,811 70,182 41,341
General and administrative  7,364  4,399  24,163  16,694
Intangible asset impairment   ----- -----  8,045  -----
Total operating expenses   25,294   17,803  105,044   60,359
Loss from operations (24,967) (18,535) (35,381) (53,408)
Other income, net   2,152      348  2,892   1,368
Loss before income taxes  (22,815) (18,187) (32,489) (52,040)
Income tax benefit  90  62  89     61
Net loss  $ (22,725) $ (18,125) $ (32,400) $ (51,979)
         
Basic and diluted net loss per share  ($ 0.17  ($ 0.18  ($ 0.27  ($ 0.57
         
Shares used in calculation of basic and diluted net loss per share   133,897   100,973   118,755   90,831 
         
Comprehensive loss:        
Net loss  $ (22,725) $ (18,125) $ (32,400) $ (51,979)
Changes in other comprehensive income:        
Foreign currency translation adjustment  194  (325)    105  (318)
Comprehensive loss $ (22,531) $ (18,450) $ (32,295) $ (52,297)
(1) Share-based compensation expenses included in operating expenses amounted to approximately:        
Research and development $ 533 $ 246 $ 1,810 $ 1,066
General and administrative 1,150 335 3,026 1,357
 
 
 
IDENIX PHARMACEUTICALS, INC.
     
CONDENSED CONSOLIDATED BALANCE SHEETS
     
(IN THOUSANDS)
     
(UNAUDITED)
     
  December 31, 2012 December 31, 2011
ASSETS    
Cash and cash equivalents $ 230,826 $ 118,271
Receivables from related party 1,195 1,157
Other current assets 5,771 4,410
Total current assets 237,792 123,838
Intangible asset, net ----- 8,708
Property and equipment, net 3,274 4,696
Receivables from related party, net of current portion 6,210 -----
Other assets 3,589 3,802
Total assets $ 250,865 $ 141,044
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Accounts payable and accrued expenses $ 15,064 $ 11,299
Deferred revenue, related party 714 2,897
Other current liabilities 154 36,329
Total current liabilities 15,932 50,525
Other long-term obligations 11,785 14,912
Deferred revenue, related party, net of current portion 3,988 24,382
Total liabilities 31,705 89,819
Stockholders' equity 219,160 51,225
Total liabilities and stockholders' equity $ 250,865 $ 141,044
CONTACT: Idenix Pharmaceuticals Contacts:

         Kelly Barry (617) 995-9033 (media)

         Teri Dahlman (617) 995-9807 (investors)
Source: Idenix Pharmaceuticals

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