Acusphere Inc (ACUS) SEC Filing 10-K Annual report for the fiscal year ending Friday, December 31, 2004

Exhibit 99.1

 

 

Acusphere, Inc. Reports 2004 Financial Results
and Operating Highlights

 

Watertown, MA, March 15, 2005

- Acusphere, Inc. (NASDAQ: ACUS) today reported financial results for the quarter and year ended December 31, 2004 and commented on operating progress.

 

Financial Results

 

The Company’s financial results for the quarter and year ended December 31, 2004 are summarized in the accompanying table and detailed in Acusphere’s Annual Report on Form 10-K filed today with the U.S. Securities and Exchange Commission.

 

During 2004, the Company recognized $1.7 million in collaboration revenue in connection with its 2004 agreement with Nycomed for European marketing rights to the Company’s lead product candidate, AI-700.  In 2004, Nycomed paid Acusphere a total of $6.0 million, including the first two of eight scheduled $1.0 million quarterly payments. As of December 31, 2004, the Company reported a total of $4.3 million in deferred revenue associated with the Nycomed agreement.

 

Operating expenses in 2004 increased to $32.1 million, compared to $19.7 million in 2003, primarily due to increased research and development costs incurred for the Company’s Phase 3 clinical program for AI-700 and due to higher general and administrative expenses associated with business development efforts and the costs associated with operating as a public company. These expected increases were partially offset by lower expenses associated with stock-based compensation. The increase in research and development costs relating to AI-700 primarily reflect increased clinical costs, including site costs, data management costs, monitoring costs and the costs of manufacturing clinical materials. The increase in research and development costs also includes costs associated with increasing our full and part-time personnel and outside consultants.

 

As of December 31, 2004, the Company’s balance of cash and cash equivalents totaled $45.2 million. This balance included $6.0 million in cash from the Company’s collaboration agreement with Nycomed, net proceeds of $19.8 million from a private equity financing completed in October 2004, and $3.4 million in cash from borrowings under the Company’s equipment financing line.  During 2004, the Company spent approximately $12.2 million towards capital purchases, primarily related to its manufacturing activities.

 

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		Acusphere, Inc.
		500 Arsenal Street
		Watertown, MA 02472
		tel:  617.648.8800
		fax:  617.926.3605
		www.acusphere.com