Cardiome Reports Third Quarter 2017 Financial Results

NASDAQ: CRME TSX: COM

Management to Host Conference Call and Webcast Today,
November 14, 2017 at 4:30 p.m. ET (1:30 p.m. PT)

VANCOUVER, Nov. 14, 2017 /PRNewswire/ - Cardiome Pharma Corp. (NASDAQ: CRME / TSX: COM), a revenue-generating, specialty pharmaceutical company focused on commercializing patent-protected hospital drugs, today reported financial results for the third quarter ended September 30, 2017 and commented on recent accomplishments and plans.

"We are extremely positive about strategic developments to date in 2017, especially the recent licensing transaction with Basilea which brought in Zevtera(®)/Mabelio(®), a high-value asset with rapid bactericidal activity against a wide range of Gram-positive and Gram-negative bacteria, and a complementary fit alongside Xydalba(TM)," commented William Hunter, MD, CEO and President of Cardiome. "Looking ahead to the remainder of the year, we will continue to work diligently to lay the regulatory and commercial groundwork for these high-value products, which we expect will have increasingly positive impact during the remainder of this year and into 2018, in which we are targeting meaningful year over year revenue growth."

Third Quarter 2017 and Recent Highlights

    --  Cardiome signed a distribution and license agreement with Basilea for
        the antibiotic Zevtera(®)/Mabelio(®) (ceftobiprole medocaril sodium) a
        cephalosporin antibiotic for the treatment of community- and
        hospital-acquired pneumonia in 34 European countries and Israel.


    --  Cardiome announced the commercial launch of Xydalba(TM) (dalbavancin
        hydrochloride) in Sweden, Finland and the Republic of Ireland, and has
        commenced marketing the drug to hospitals in these countries. Xydalba is
        approved by the European Medicines Agency (EMA) for the treatment of
        Acute Bacterial Skin and Skin Structure Infections (ABSSSIs) in adults.


    --  Cardiome received approval from Health Canada for the Aggrastat(®)
        (tirofiban hydrochloride) high dose bolus (HDB) regimen, better aligning
        the Canadian, United States, and European product labels.


    --  Clinical data highlighting the clinical benefit of Brinavess(®) was
        presented at the European Society of Cardiology Congress (ESC) 2017. The
        retrospective data analysis showed that administration of Brinavess(®)
        led to faster restoration of sinus rhythm and shorter hospital stays
        when compared to the same results for electrical cardioversion ("ECV").
        While ECV was more effective in the cardioversion of recent onset AF
        (94.0% vs. 66.5% respectively), longer-term there was statistically
        significant reduction in AF recurrence in patients treated with
        Brinavess(®) relative to ECV after 365 days.
    --  Trevyent licensor SteadyMed held an in-person Type A meeting with the
        FDA on November 1, 2017, following a RTF letter received in August 2017.
        SteadyMed believes the meeting was collaborative and constructive and
        has agreed to a path forward with FDA that it expects will allow for the
        resubmission and acceptance of SteadyMed's Trevyent U.S. NDA. SteadyMed
        has stated its intention to provide further details and guidance when
        meeting minutes are received from the FDA in the near future.

Summary Results

Amounts, unless specified otherwise, are expressed in U.S. dollars and in accordance with generally accepted accounting principles used in the United States of America (U.S. GAAP).

Cardiome recorded a net loss of $6.6 million (basic loss per share of $0.20) for the three months ended September 30, 2017 compared to a net loss of $5.3 million (basic loss per share of $0.19) for the three months ended September 30, 2016. On a year-to-date basis, Cardiome recorded a net loss of $21.5 million (basic loss per share of $0.66) for the nine months ended September 30, 2017 compared to a net loss of $14.0 million (basic loss per share of $0.61) for the nine months ended September 30, 2016. The increase in net loss on a year-to-date basis was due primarily to an increase in selling, general and administration ("SG&A") expense and a decrease in revenue.

Revenue for the three months ended September 30, 2017 was $6.0 million, a year-over-year increase of 15.0%, compared to revenue of $5.2 million for the three months ended September 30, 2016. The increase in revenue for the third quarter was primarily attributable to the global commercial rollout of Xydalba(TM) and higher sales of Aggrastat(®) in the Middle East. Revenue for the nine months ended September 30, 2017 and 2016 was $17.0 million and $18.2 million, respectively. The decrease in revenue for the nine months ended September 30, 2017 was due to the timing of distributor sales.

Gross margin for the three and nine months ended September 30, 2017 was 75.3% and 71.5%, respectively, compared to 74.4% and 75.6% for the three and nine months ended September 30, 2016. The fluctuation in gross margin is primarily due to changes in customer and product mix.

SG&A expense for the three months ended September 30, 2017 was $8.5 million compared to $7.2 million for the three months ended September 30, 2016. The increase in SG&A expense was primarily due to expansion of Cardiome's direct sales force in Europe related to the launch of Xydalba(TM) and to the initiation of a Canadian sales force. On a year-to-date basis, SG&A expense for the nine months ended September 30, 2017 was $26.3 million compared to $21.4 million for the nine months ended September 30, 2016. The increase in SG&A expense was due to the same factors as the quarterly change. Additionally, there was an increase of $1.7 million to the Company's stock-based compensation expense as the Company had a stock-based compensation recovery during the nine months ended September 30, 2016.

In the second quarter of 2017, the Company amended the terms of its term loan agreement with CRG-managed funds. As a result, Cardiome incurred investment banking, legal and other expenses of $1.5 million during the nine months ended September 30, 2017.

Interest expense was $1.8 million for the three months ended September 30, 2017 compared to $0.9 million for the three months ended September 30, 2016. The increase was due to an increase in long-term debt in the third quarter of 2017 as the Company drew a third tranche of $10.0 million under the CRG term loan agreement. On a year-to-date basis, interest expense for the nine months ended September 30, 2017 was $3.8 million compared to $1.7 million for the nine months ended September 30, 2016. The increase was due to interest being accrued on a higher long-term debt principal amount during the nine months ended September 30, 2017. Additionally, in the second quarter of 2017, the Company began amortizing the discount on the amended CRG term loan agreement in connection with the warrants issued. This discount is being amortized to interest expense.

Liquidity and Outstanding Share Capital

At September 30, 2017, the Company had cash and cash equivalents of $27.2 million. As of November 13, 2017, there were 34,628,842 common shares issued and outstanding, and 2,900,057 common shares issuable upon the exercise of outstanding stock options (of which 1,762,582 were exercisable) at a weighted average exercise price of CAD $5.51 per share, and 103,801 restricted share units outstanding.

Financial Outlook

    --  Cardiome expects its 2017 revenues to be in the range of $24-26 million.


    --  Cardiome repaid the remaining deferred consideration balance in full in
        connection with the November 2013 acquisition of Correvio LLC.


    --  Based on its current operating plans, Cardiome expects that its existing
        cash and cash equivalents will be sufficient to fund its operations for
        at least the next 12 months.
    --  There are no share price or market capitalization covenants relating to
        the Company's term loan agreement with CRG-managed funds.

Conference Call

Cardiome will hold a conference call and webcast on Tuesday, November 14, 2017 at 4:30pm ET (1:30pm PT). To access the conference call, please dial 416-764-8688 or 888-390-0546 and use conference ID 66802456. The webcast can be accessed through Cardiome's website at www.cardiome.com or through the following link:

https://event.on24.com/wcc/r/1532852/0B1B089E794F8F2B4346C40360FC4807

Webcast and telephone replays of the conference call will be available approximately two hours after the completion of the call through December 12, 2017. Please dial 416-764-8677 or 888-390-0541 and enter code 802456 # to access the replay.

About Cardiome Pharma Corp.

Cardiome Pharma Corp. is a revenue-generating, specialty pharmaceutical company focused on providing innovative, high-quality brands that meet the needs of acute care physicians and patients. With a commercial presence and distribution network covering over 60 countries worldwide, Cardiome develops, acquires and commercializes brands for the in-hospital, acute care market segment. The Company's portfolio of approved and marketed brands includes: Xydalba(TM) (dalbavancin hydrochloride), for the treatment of acute bacterial skin and skin structure infections (ABSSSI); Zevtera(®)/Mabelio(®) (ceftobiprole medocaril sodium), a cephalosporin antibiotic for the treatment of community- and hospital-acquired pneumonia (CAP, HAP); Brinavess(®) (vernakalant IV) for the rapid conversion of recent onset atrial fibrillation to sinus rhythm; Aggrastat(®) (tirofiban hydrochloride) for the reduction of thrombotic cardiovascular events in patients with acute coronary syndrome, and Esmocard(®) and Esmocard Lyo(®) (esmolol hydrochloride), a short-acting beta-blocker used to control rapid heart rate in a number of cardiovascular indications. Cardiome's pipeline of product candidates includes Trevyent(®), a drug device combination that is designed to deliver Remodulin(®) (treprostinil) the world's leading treatment for pulmonary arterial hypertension.

Cardiome is traded on the NASDAQ Capital Market (CRME) and the Toronto Stock Exchange (COM). For more information, please visit our web site at www.cardiome.com.

Forward-Looking Statement Disclaimer
Certain statements in this news release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 or forward-looking information under applicable Canadian securities legislation that may not be based on historical fact, including without limitation statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect" and similar expressions. Forward- looking statements may involve, but are not limited to, comments with respect to our objectives and priorities for 2017 and beyond, our strategies or future actions, our targets, expectations for our financial condition and the results of, or outlook for, our operations, research and development and product and drug development. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Many such known risks, uncertainties and other factors are taken into account as part of our assumptions underlying these forward-looking statements and include, among others, the following: general economic and business conditions in the United States, Canada, Europe, and the other regions in which we operate; market demand; technological changes that could impact our existing products or our ability to develop and commercialize future products; competition; existing governmental legislation and regulations and changes in, or the failure to comply with, governmental legislation and regulations; availability of financial reimbursement coverage from governmental and third-party payers for products and related treatments; adverse results or unexpected delays in pre-clinical and clinical product development processes; adverse findings related to the safety and/or efficacy of our products or products; decisions, and the timing of decisions, made by health regulatory agencies regarding approval of our technology and products; the requirement for substantial funding to expand commercialization activities; and any other factors that may affect our performance. In addition, our business is subject to certain operating risks that may cause any results expressed or implied by the forward-looking statements in this presentation to differ materially from our actual results. These operating risks include: our ability to attract and retain qualified personnel; our ability to successfully complete pre-clinical and clinical development of our products; changes in our business strategy or development plans; intellectual property matters, including the unenforceability or loss of patent protection resulting from third-party challenges to our patents; market acceptance of our technology and products; our ability to successfully manufacture, market and sell our products; and the availability of capital to finance our activities;These and other risks are described in the Form 40F and associated documents filed March 29, 2017 (see for example, "Risk Factors" in the Annual Information Form for the year ended December 31, 2016), in the Form 6-K filed August 10, 2017, and in our other filings with the Securities and Exchange Commission ("SEC") available at www.sec.gov and the Canadian securities regulatory authorities at www.sedar.com. Given these risks, uncertainties and factors, you are cautioned not to place undue reliance on such forward-looking statements and information, which are qualified in their entirety by this cautionary statement. All forward-looking statements and information made herein are based on our current expectations and we undertake no obligation to revise or update such forward-looking statements and information to reflect subsequent events or circumstances, except as required by law.

Cardiome(®) and the Cardiome Logo are the proprietary trademarks of Cardiome Pharma Corp.
Aggrastat(®) and Brinavess(®) are trademarks owned by Cardiome and its affiliates worldwide.
Xydalba(®) is a trademark of Durata Therapeutics Holding C.V., and used under license.
Zevtera(®) and Mabelio(®) are trademarks owned by Basilea Pharmaceutica International Ltd., and used under license.
Esmocard(®) and Esmocard Lyo(®) are trademarks owned by Orpha-Devel Handels und Vertriebs GmbH, and used under license.
Trevyent(®) is a trademark of SteadyMed and used under license.
All other trademarks are the property of their respective owners.

CARDIOME PHARMA CORP.
Interim Consolidated Balance Sheets
(Expressed in thousands of U.S. dollars, except share amounts)


                                                          September 30,   December 31,
                                                                                  2016
                                                                   2017
                                                                   ----


    Assets


    Current assets:

                 Cash and cash
                 equivalents                      $27,182                         $26,758

                Restricted cash          1,943       2,547

                Accounts
                 receivable,
                 net of
                 allowance for
                 doubtful
                 accounts of
                 $114 (2016 -
                 $97)                     6,262       6,154

                Inventories              6,294       4,618

                 Prepaid
                 expenses and
                 other assets            1,525       1,302
                -------------            -----       -----

                                                               43,206          41,379


    Property and equipment                                        451             548

    Intangible assets                                          28,445          24,352

    Goodwill                                                      318             318

    Deferred income tax assets                                    462             460
    --------------------------                                    ---             ---

                                       $72,882                     $67,057
                                       =======                     =======


    Liabilities and Stockholders'
     Equity


    Current liabilities:

                 Accounts
                 payable and
                 accrued
                 liabilities                       $7,629                          $8,021

                 Current portion
                 of deferred
                 consideration               -      2,815

                 Current portion
                 of deferred
                 revenue                   204         182
                ---------------            ---         ---

                                                                7,833          11,018


    Long-term debt, net of
     unamortized debt issuance
     costs and discount                                        39,014          19,391

    Deferred revenue                                            2,514           2,381

    Other long-term liabilities                                   220             243
    ---------------------------                                   ---             ---

                                                               49,581          33,033
                                                               ------          ------


    Stockholders' equity:

                Common stock           352,711     344,928

                 Authorized -unlimited number
                 without par value

                 Issued and outstanding -
                 33,940,715 (2016 -
                 31,884,420)

                 Additional
                 paid-in
                 capital                38,074      35,812

                Deficit              (384,522)  (363,054)

                 Accumulated
                 other
                 comprehensive
                 income                 17,038      16,338
                --------------          ------      ------

                                                               23,301          34,024
                                                               ------          ------

                                       $72,882                     $67,057
                                       =======                     =======

CARDIOME PHARMA CORP.
Interim Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(Expressed in thousands of U.S. dollars, except share and per share amounts)




                                                          Three months ended           Nine months ended
                                                          ------------------           -----------------

                                                     September 30,   September 30,  September 30,   September 30,
                                                              2017             2016            2017             2016
                                                              ----             ----            ----             ----

    Revenue:

                Product and royalty revenues                               $5,970                          $5,186          $16,828        $18,093

                Licensing and other fees                       51               51             146              145
                ------------------------                      ---              ---             ---              ---

                                                          6,021            5,237          16,974           18,238

    Cost of goods sold                                    1,488            1,342           4,845            4,452
    ------------------                                    -----            -----           -----            -----

    Gross margin                                          4,533            3,895          12,129           13,786

    Expenses:

                Selling, general and administration         8,481            7,170          26,277           21,415

                Amortization                                  890              853           2,567            2,131
                ------------                                  ---              ---           -----            -----

                                                          9,371            8,023          28,844           23,546
                                                          =====            =====          ======           ======

    Operating loss                                      (4,838)         (4,128)       (16,715)         (9,760)


    Other expense:

                 Loss on extinguishment of long-term
                 debt                                           -               -              -           1,402

                 Other expense on modification of
                 long-term debt                                29                -          1,451                -

                Interest expense                            1,762              865           3,796            1,715

                Other expense (income)                        175              (6)            282              329

                Foreign exchange loss (gain)                (255)             209           (881)             601
                ---------------------------                  ----              ---            ----              ---

                                                          1,711            1,068           4,648            4,047
                                                          -----            -----           -----            -----

    Loss before income taxes                            (6,549)         (5,196)       (21,363)        (13,807)

    Income tax expense                                       74               88             105              225
    ------------------                                      ---              ---             ---              ---

    Net loss                                                           $(6,623)                       $(5,284)       $(21,468)     $(14,032)
    --------                                                            -------                         -------         --------       --------

    Other comprehensive loss:

                 Foreign currency translation
                 adjustments                                  173              149             700              515
                -----------------------------                 ---              ---             ---              ---

    Comprehensive loss                                                 $(6,450)                       $(5,135)       $(20,768)     $(13,517)
    ==================                                                  =======                         =======         ========       ========

    Loss per common share

                Basic                                                     $(0.20)                        $(0.19)         $(0.66)       $(0.61)

                Diluted                                                   $(0.20)                        $(0.19)         $(0.66)       $(0.62)
                =======                                                    ======                          ======           ======         ======

    Weighted average common shares
     outstanding

                Basic                                  33,835,677       28,376,143      32,730,558       23,034,503

                Diluted                                33,878,190       28,433,016      32,772,179       23,101,263
                -------                                ----------       ----------      ----------       ----------

CARDIOME PHARMA CORP.
Interim Consolidated Statements of Cash Flows
(Unaudited)
(Expressed in thousands of U.S. dollars)




                                                                                                      Three months ended                                 Nine months ended
                                                                                                      ------------------                                 -----------------

                                                                                                                        September 30, September 30,  September 30,   September 30,
                                                                                                                                 2017           2016            2017             2016
                                                                                                                                 ----           ----            ----             ----

    Operating activities:

    Net loss                                                                                                                               $(6,623)                       $(5,284)                $(21,468)   $(14,032)

    Items not affecting cash:

                                                                         Amortization                                                           890             853            2,567        2,131

                                                                         Accretion of long-term debt                                            567              56              970          202

                                                                         Interest paid in-kind on long-term debt                                366               -             366            -

                                                                         Write-down of inventory                                                163               -             233            -

                                                                         Loss on extinguishment of long-term debt                                 -              -               -       1,402

                                                                         Stock-based compensation expense (recovery)                            311             209            1,641         (84)

                                                                         Unrealized foreign exchange gain (loss)                              (445)            122          (1,417)         475

    Changes in operating assets and liabilities:

                                                                         Restricted cash                                                      1,006               -             812        (295)

                                                                         Accounts receivable                                                  (703)          2,435              473        1,923

                                                                         Inventories                                                             70            (87)         (1,412)       (116)

                                                                         Prepaid expenses and other assets                                    (305)            180            (203)       (323)

                                                                         Accounts payable and accrued liabilities                               492         (2,900)           (767)     (2,441)

                                                                         Deferred revenue                                                      (51)             21            (146)        (73)

                                                                         Other long-term liabilities                                            (8)            (8)            (23)        (23)
                                                                         ---------------------------                                            ---             ---              ---          ---

    Net cash used in operating activities                                                                                     (4,270)       (4,403)       (18,374)        (11,254)


    Investing activities:

                                                                         Purchase of property and equipment                                       -              -             (5)         (9)

                                                                         Purchase of intangible assets                                      (5,206)        (8,017)         (5,219)    (13,628)
                                                                         -----------------------------                                       ------          ------           ------      -------

    Net cash used in investing activities                                                                                     (5,206)       (8,017)        (5,224)        (13,637)


    Financing activities:

                                                                         Issuance of common stock                                               237          34,500            7,127       35,341

                                                                         Share issue costs                                                     (10)        (2,722)           (352)     (2,752)

                                                                         Issuance of common stock upon exercise of stock options                  -              -             384            -

                                                                         Income tax withholdings on vesting of restricted share units           (9)            (5)            (58)       (136)

                                                                         Proceeds from issuance of long-term debt                            10,000               -          20,000       20,000

                                                                         Financing fees on issuance of long-term debt                         (368)           (23)           (518)       (713)

                                                                         Repayment of long-term debt                                              -              -               -    (10,000)

                                                                         Payment of fees on extinguishment of long-term debt                      -              -               -     (1,146)

                                                                         Payment of deferred consideration                                  (1,670)          (726)         (2,815)     (1,755)
                                                                         ---------------------------------                                   ------            ----           ------       ------

    Net cash provided by financing activities                                                                                   8,180         31,024          23,768           38,839


    Increase (decrease) in cash and cash equivalents during the period                                                        (1,296)        18,604             170           13,948
    ------------------------------------------------------------------                                                         ------         ------             ---           ------

    Effect of foreign exchange rate changes on cash and cash equivalents                                                           95             46             254             (75)

    Cash and cash equivalents, beginning of period                                                                             28,383         12,884          26,758           17,661
    ----------------------------------------------                                                                             ------         ------          ------           ------

    Cash and cash equivalents, end of period                                                                                                $27,182                         $31,534                   $27,182      $31,534
    ========================================                                                                                                =======                         =======                   =======      =======


    Supplemental cash flow information:

    Interest paid                                                                                                                              $843                            $815                    $2,479       $1,524

    Net income taxes paid (received)                                                                                               25             46           (328)              31
    ===============================                                                                                               ===            ===            ====              ===

SOURCE Cardiome Pharma Corp.