NPS reported net income of $14.1 million for the third quarter of 2007 and ended the quarter with $302.2 million in cash and marketable securities. During the third quarter the following financial transactions were executed:
-- NPS granted Nycomed the rights to develop and market GATTEX outside
North America, which generated an up-front payment of $10 million;
-- NPS sold $11 million of Preotact(R) bulk drug supply to Nycomed;
-- The Preotact royalty entitlement was sold to Drug Royalty LP 3 for an
up-front payment of $50 million;
-- $50 million of convertible notes were issued to Visium Asset
-- $100 million in Sensipar(R) royalty-backed notes were issued;
-- $20.2 million of 3% Convertible Notes were repurchased for $19.5
Subsequent to the close of the third quarter the following transactions were completed:
-- NPS sold its interests in the mGluR research and development program
to partner AstraZeneca for $30 million;
-- $171.2 million of its outstanding 3% Convertible Notes were repurchased
through a cash tender offer for $169.1 million;
-- Nycomed elected to proceed with the GATTEX licensing agreement,
triggering a $25 million additional upfront payment to NPS.
Excluding the net proceeds generated by new business development activities and financing transactions executed in 2007, NPS now expects to have a 2007 cash burn between $70 and $80 million, a change from its earlier guidance of $80 to $90 million. As a result of the reduced cash burn, recent transactions and gains on facilities sales, NPS is revising its previous year end cash balance guidance of $65 to $75 million to a new range of between $130 and $140 million.
NPS projects that its 2008 cash burn will be $35 to 45 million, as
indicated in previous guidance. With the reduced cash burn and revised cash
balance, NPS should have sufficient cash
|SOURCE NPS Pharmaceuticals, Inc.|
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