Ardea Biosciences Appoints John W. Beck Chief Financial Officer, Announces Clinical Development Progress and Reports First Quarter 2008 Financi...(r corporate headquarters and research la...),Health

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2008 1st Quarter Financial Results

As of March 31, 2008, the Company had $56.2 million in cash, cash equivalents and short-term investments, compared to $66.2 million as of December 31, 2007.

The net loss for the first quarter ended March 31, 2008 was $12.4 million, or $0.93 per share, compared to a net loss for the same period in 2007 of $3.4 million, or $0.37 per share. The net loss included non-cash stock-based compensation expense of $1.0 million, or $0.08 per share, and $0.2 million, or $0.02 per share, for the three months ended March 31, 2008 and March 31, 2007, respectively. The increase in net loss between these two periods was primarily due to increased expenses resulting from our continued progress with our preclinical and clinical drug candidates.

Revenue for the first quarter was $0.3 million, compared to $0.9 million for the same period in 2007. The decrease is the result of fewer research activities performed by us under our master services agreement with Valeant Pharmaceuticals ("Valeant"). Due to changing priorities at Valeant, we do not anticipate any additional research activities to be conducted under the master services agreement.

2008 Financial Guidance

The Company confirmed its financial guidance for the full year ending December 31, 2008. Excluding any funds that Ardea may receive from future business development activities, the Company anticipates 2008 net cash usage to be between $45 million and $50 million.

About Ardea Biosciences

Ardea Biosciences, Inc. of San Diego, California, is a biotechnology company focused on the discovery and development of small-molecule therapeutics for the treatment of HIV, cancer and inflammatory diseases, including gout. We have four drug candidates in clinical trials and several others in preclinical development and discovery. Our most advanced drug candi
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