Cardiome Pharma Corp. (NASDAQ:CRME) has revealed earlier this week a $30-million underwritten public offering of 10 million shares, which will close on Friday subject to regulatory requirements. The underwriters are given a 30-day option to purchase a maximum of 1.50 million shares worth $4.50 million.
Purpose of the Underwritten Public Offering
Cardiome Pharma will use the net proceeds from the underwritten public offering primarily for its dalbavancin in-licensing. The remainder will be allotted for general corporate expenses.
ESMOCARD and ESMOCARD LYO Availability in Italy
Earlier this month, the company has received the final pricing approval and national reimbursement for the ESMOCARD and ESMOCARD LYO in Italy.
According to Eric Lambert, Cardiome Pharma Sales Director for Europe, the approval of the ESMOCARD and ESMOCARD LYO in Italy is in line with the company’s strategic growth prospects in the country. With the recent milestone, Cardiome Pharma expects to launch the two products to physicians in Italy as early as the fourth quarter, which follows the successful introduction in France. Lambert noted that these activities reiterate the company’s commitment to constantly developing products that will improve healthcare for everyone.
Q1 Earnings Report
Cardiome Pharma issued its first quarter results last May, reporting a significant increase of 29% in revenue to $7.10 million from the $5.50 million reported during the same quarter in 2015. Consequently, net loss fell significantly year-over-year to $1.20 million from $3.90 million.
Selling, general, and administrative (SG&A) expenses during the period was seen at $6.30 million while interest expenses closed the quarter at $400,000, down by nearly half from last year’s $700,000.
The company ended the period with a total cash and cash equivalents of $11.50 million.
Dr. William Hunter, Cardiome Pharma CEO, expressed that the results for the first quarter have met the company’s expectations. The strong performance is generally attributed to the strong product sales. Cardiome Pharma intends to add more pharmaceutical products to its lineup as part of its long-term growth plans.