Nuvelo more than doubles cash reserve to $157.2 million

By Angela McDaniels

Seattle, Nov. 2 - Nuvelo, Inc. said it had $157.2 million of cash, cash equivalents and short-term investments at Sept. 30, which is more than double the $70.3 million the company had at Dec. 31, 2005.

For the three and nine months ended Sept. 30, the company said its net cash used in operating activities was $24.0 million and $22.1 million, respectively.

Cash burn was $22.5 million for the third quarter and $25.3 million for the first nine months of 2006. Nuvelo said both periods include a $4 million up-front license fee paid to Archemix Corp., and the cash burn in the nine-month period includes the receipt of the $50.0 million up-front payment from Bayer and a $5.4 million cash payment to settle the principal and interest on a promissory note issued to Affymetrix, Inc.

For the third quarter, Nuvelo reported a net loss of $26.7 million, or $0.51 per share, compared with a net loss of $18.5 million, or $0.44 per share, for the same period in 2005.

For the first nine months of 2006, the net loss was $65.2 million, or $1.28 per share, compared with $50.1 million, or $1.23 per share, for the first nine months of 2005.

Revenues for the third quarter rose to $908,000 from $123,000 for the third quarter of 2005, an increased the company attributed primarily to the recognition of revenue from the $50 million up-front license fee received from Bayer HealthCare in January 2006.

Revenue for the first nine months of 2005 was $3.0 million, a significant increase over $362,000 for the same period of 2005.

"Over the next several months, we will remain focused on our key value-driving deliverables: execution of our milestones and producing and announcing top-line alfimeprase data in acute peripheral arterial occlusion and catheter occlusion," chairman and chief executive officer Ted. W. Love said in a company news release.

Nuvelo is based in San Carlos, Calif., and develops novel drugs for the treatment of acute cardiovascular disease and cancer.

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