BOTHELL, WA--(Marketwire - November 15, 2010) - Marina Biotech, Inc. (
NASDAQ:
MRNA), a leading
RNAi-based drug discovery and development company, today reported revised
financial results for the third quarter and nine months ended September 30,
2010.
Subsequent to the Company's earnings release and investor call on November
10, the Company determined that it should revise its recording of
approximately $0.9 million in severance costs and stock-based compensation
relating to accounting for the acquisition of Cequent Pharmaceuticals. The
stock-based compensation was previously reflected as purchase consideration
and the severance costs were previously reflected as liabilities assumed in
the business combination. The revised accounting will record these amounts
as expenses in the third quarter. This revision did not increase
liabilities and will have no additional impact on the Company's cash
balance.
The effect was to increase the net loss to $8.3 million, or $0.39 per
share, from the previously reported result of $7.4 million, or $0.35 per
share, for the third quarter ended September 30, 2010. For the nine months
ended September 30, 2010, the net loss increased to $21.9 million, or $1.45
per share, from the previously reported amount of $21.0 million, or $1.40
per share.
These revisions will be reflected in the Company's 10-Q for the third
quarter ended September 30, 2010, which is being filed with the Securities
and Exchange Commission today.
Attached is a revised financial table showing the adjusted financial
results.
About Marina Biotech, Inc.
Marina Biotech (formerly known as MDRNA, Inc.) is a biotechnology company,
focused on the development and commercialization of therapeutic products
based on RNA interference (RNAi). Marina Biotech's pipeline currently
includes a clinical program in Familial Adenomatous Polyposis (a
precancerous syndrome) and two preclinical programs -- in hepatocellular
carcinoma and bladder cancer. Marina Biotech's goal is to improve human
health through the development of RNAi-based compounds and drug delivery
technologies that together provide superior therapeutic options for
patients. Additional information about Marina Biotech is available at
http://www.marinabio.com.
Marina Biotech Forward-Looking Statements
Statements made in this news release may be forward-looking statements
within the meaning of Federal Securities laws that are subject to certain
risks and uncertainties and involve factors that may cause actual results
to differ materially from those projected or suggested. Factors that could
cause actual results to differ materially from those in forward-looking
statements include, but are not limited to: (i) the ability of Marina
Biotech to obtain additional funding; (ii) the ability of Marina Biotech to
attract and/or maintain manufacturing, research, development and
commercialization partners; (iii) the ability of Marina Biotech and/or a
partner to successfully complete product research and development,
including preclinical and clinical studies and commercialization; (iv) the
ability of Marina Biotech and/or a partner to obtain required governmental
approvals; and (v) the ability of Marina Biotech and/or a partner to
develop and commercialize products that can compete favorably with those of
competitors. Additional factors that could cause actual results to differ
materially from those projected or suggested in any forward-looking
statements are contained in Marina Biotech's most recent periodic reports
on Form 10-K and Form 10-Q that are filed with the Securities and Exchange
Commission. Marina Biotech assumes no obligation to update and supplement
forward-looking statements because of subsequent events.
MARINA BIOTECH, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2010 2009 2010
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
License and other
revenue $ 64 $ 1,130 $ 14,524 $ 1,507
----------- ----------- ----------- -----------
Operating expenses:
Research and
development 3,319 7,500 11,775 14,936
Selling, general and
administrative 3,478 3,956 7,836 8,763
Restructuring 118 460 429 746
----------- ----------- ----------- -----------
Total operating
expenses 6,915 11,916 20,040 24,445
----------- ----------- ----------- -----------
Income (loss) from
operations (6,851) (10,786) (5,516) (22,938)
Other income (expense):
Interest income 1 --- 4 ---
Interest and other
expense --- (321) (311) (1,645)
Net gain on
settlement of
liabilities --- 29 654 29
Change in fair value
price adjustable
warrants (160) 2,806 (2,092) 2,691
----------- ----------- ----------- -----------
Net loss $ (7,010) $ (8,272) $ (7,261) $ (21,863)
=========== =========== =========== ===========
Basic and diluted net
loss per share:
Net loss per common
share -- basic and
diluted $ (0.69) $ (0.39) $ (0.80) $ (1.45)
=========== =========== =========== ===========
Shares used in computing
net loss per share --
basic and diluted 10,178 20,982 9,084 15,045
=========== =========== =========== ===========
December 31, September 30,
Selected Balance Sheet Data (In Thousands) 2009 2010
----------- -----------
(Unaudited) (Unaudited)
Cash
(includes restricted cash of $998 and
$1,157, respectively) $ 1,746 $ 2,104
Accounts Receivable, net 211 161
Property and Equipment and Other Assets 5,272 4,844
Goodwill and Intangible Assets --- 29,617
----------- -----------
Total Assets 7,229 36,726
=========== ===========
Notes Payable, net of Discount 317 ---
Fair Value Liability for Price Adjustable
Warrants 7,243 3,500
Deferred Taxes --- 8,085
----------- -----------
Other Liabilities 6,555 8,801
----------- -----------
Total Liabilities 14,115 20,386
=========== ===========
Accumulated Deficit (263,017) (284,880)
=========== ===========
Contact Information: Contacts:
Marina Biotech, Inc.
Peter Garcia
Chief Financial Officer
(425) 908-3603