AMICUS THERAPEUTICS, INC. Reports Operating Results (10-Q)

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May 08, 2009
AMICUS THERAPEUTICS, INC. (FOLD, Financial) filed Quarterly Report for the period ended 2009-03-31.

AMICUS THERAPEUTICS is a biopharmaceutical company developing novel oral therapeutics known as pharmacological chaperones for the treatment of a range of human genetic diseases. Pharmacological chaperone technology involves the use of small molecules that selectively bind to and stabilizeproteins in cells leading to improved protein folding and trafficking and increased activity. Amicus is initially targeting lysosomal storage disorders which are severe chronic genetic diseases with unmet medical needs. Amicus has completed Phase 2 clinical trials of Amigal(TM) for the treatment of Fabry disease and is conducting Phase 2 clinical trials of Plicera(TM) for the treatment of Gaucher disease. AMICUS THERAPEUTICS, INC. has a market cap of $186.1 million; its shares were traded at around $8.22 with and P/S ratio of 12.4.

Highlight of Business Operations:

In connection with our collaboration agreement with Shire, Shire paid us an initial, non-refundable license fee of $50 million and reimburses us for certain research and development costs associated with our lead clinical development programs. For the three months ended March 31, 2008 and 2009, we recognized approximately $0.7 million of the license fee in Collaboration Revenue in each period. For the three months ended March 31, 2008 and 2009, we recognized $2.5 million and $3.9 million, respectively, of Research Revenue for reimbursed research and development costs. The license fee will be recognized as Collaboration Revenue over the 18 year performance obligation period. We have not generated any commercial sales revenue since our inception.

Interest Income and Interest Expense. Interest income was $0.5 million for the three months ended March 31, 2009, compared to $1.7 million for the three months ended March 31, 2008. The decrease of $1.2 million or 71% was due to lower cash and cash equivalents balances and the continuing decline in average interest rates. Interest expense was approximately $0.1 million for the three months ended March 31, 2009 and 2008.

As a result of our significant research and development expenditures and the lack of any approved products to generate product sales revenue, we have not been profitable and have generated operating losses since our inception in 2002. We have funded our operations principally with $148.7 million of proceeds from redeemable convertible preferred stock offerings, $75.0 million of gross proceeds from our initial public offering in June 2007 and $50.0 million from the non-refundable license fee from the Shire collaboration agreement in November 2007. The following table summarizes our significant funding sources as of March 31, 2009:

Net cash used in operations for the three months ended March 31, 2009 was $10.8 million due to the net loss for the three months ended March 31, 2009 of $12.5 million and a reduction in deferred revenue of $1.2 million partially offset by the change in other operating assets and liabilities of $0.4 million.

Net cash used in investing activities for the three months ended March 31, 2008 was $18.7 million. Net cash used in investing activities reflects $49.3 million for the purchase of marketable securities and $0.2 million for the acquisition of property and equipment, partially offset by $30.8 million for the sale and redemption of marketable securities.

Net cash provided by investing activities for the three months ended March 31, 2009 was $6.3 million. Net cash used in investing activities reflects $38.5 million for the purchase of marketable securities and $0.7 million for the acquisition of property and equipment, partially offset by $45.5 million for the sale and redemption of marketable securities.

Read the The complete ReportFOLD is in the portfolios of Carl Icahn of Icahn Capital Management LP.