Idenix Pharmaceuticals Reports Third Quarter and Nine Month 2012 Financial Results and HCV Program Update

Idenix Pharmaceuticals Reports Third Quarter and Nine Month 2012 Financial
Results and HCV Program Update

CAMBRIDGE, Mass., Nov. 1, 2012 (GLOBE NEWSWIRE) -- Idenix Pharmaceuticals,
Inc. (Nasdaq:IDIX), a biopharmaceutical company engaged in the discovery and
development of drugs for the treatment of human viral diseases, today reported
unaudited financial results for the third quarter and nine months ended
September 30, 2012 and provided an update of its hepatitis C virus (HCV)
development programs.

HCV Pipeline and Third Quarter Business Review

IDX719, an NS5A inhibitor

  *The Company previously reported early clinical results demonstrating a
    favorable safety profile and potent pan-genotypic activity for IDX719.
    Idenix anticipates that a phase II clinical trial evaluating IDX719 in
    combination therapy will begin in the first half of 2013.

Nucleotide polymerase inhibitor program

  *In August 2012, the U.S. Food and Drug Administration (FDA) placed IDX184
    on partial clinical hold due to serious cardiac–related adverse events
    seen with a competitor's nucleotide polymerase inhibitor, BMS-986094
    (formerly INX-189). Idenix has obtained cardiac safety measurements from
    the ongoing phase IIb study of IDX184 in combination with pegylated
    interferon and ribavirin and has found no evidence of severe cardiac
    findings to date. Idenix is reviewing additional preclinical and clinical
    data and conducting further testing . The Company anticipates submitting
    the complete response package to the FDA by year-end.
  *In July 2012, Idenix submitted an investigational new drug (IND)
    application for IDX19368, a 2'methyl guanosine nucleotide inhibitor. In
    August 2012, FDA placed IDX19368 on clinical hold due to serious
    cardiac-related adverse events seen with BMS-986094 and has requested
    additional toxicology and metabolic preclinical studies for IDX19368 prior
    to permitting the initiation of clinical studies.
  *As part of the ongoing extensive nucleotide discovery effort, the Company
    is exploring a diverse spectrum of nucleotides with novel bases, prodrugs
    and sugar moieties. IND-enabling studies have begun for a new nucleotide
    prodrug and an IND is expected to be filed in 2013.

"We are working diligently to assemble all of the data requested by the FDA
regarding IDX184, and we expect to receive a response from the FDA in early
2013," said Ron Renaud, Idenix's President and Chief Executive Officer. "We
also are excited about IDX719, a potentially best-in-class pan-genotypic NS5A
inhibitor, and look forward to moving it into phase II clinical development in
the near term. Additionally, in 2013 we expect to see the results of our
robust discovery efforts focused on next-generation nucleotide inhibitors,
with the objective of filing at least one INDnext year."

Renaud continued, "Our goal remains to develop an all-oral pan-genotypic
regimen that will play a significant role in future HCV treatments. With a
strong cash position and the restructured Novartis collaboration, we are able
to maximize opportunities for advancing our programs in order to achieve that
goal."

Upcoming Meeting

The 63^rd Annual Meeting for the American Association for the Study of Liver
Diseases (AASLD) will take place in Boston from November 9 – November 13,
2012.

  *A poster titled "IDX719, HCV NS5A Inhibitor, Demonstrates Pan-Genotypic
    Activity after Three Days of Monotherapy in Genotype 1, 2, 3 or 4
    HCV-Infected Subjects," by D. Mayers, et al, will be presented on November
    13 at 8:00 am ET.
  *A poster titled "High Rates of Rapid Virologic Response (RVR) and Complete
    Early Virologic Response (cEVR) with IDX184, Pegylated Interferon and
    Ribavirin in Genotype 1 HCV-Infected Subjects: Interim Results," by E.
    Lawitz, et al, will be presented on November 13, 2012 at 8:00 am ET.

Third Quarter and Nine Months Ended 2012 Financial Results

For the third quarter ended September 30, 2012, Idenix reported total revenues
of $32.3 million, compared to total revenues of $2.6 million in the third
quarter of 2011. The Company reported a net income of $4.3 million, or $0.03
per basic and diluted share, for the third quarter ended September 30, 2012,
compared to a net loss of $11.7 million, or $0.12 per basic and diluted share
for the third quarter ended September 30, 2011.

For the nine months ended September 30, 2012, Idenix reported total revenues
of $69.3 million, compared to total revenues of $7.7 million for the nine
months ended September 30, 2011. The Company reported a net loss of $9.7
million, or $0.09 per basic and diluted share, for the nine months ended
September 30, 2012, compared to a net loss of $33.9 million, or $0.39 per
basic and diluted share for the nine months ended September 30, 2011. The
change in net loss is mainly due to additional revenue as a result of the
recognition of $36.1 million of deferred revenue in the first quarter of 2012
related to the termination of the license agreement with ViiV Healthcare
Company and $27.1 million of additional revenue recognized in the third
quarter of 2012 as a result of the restructuring of our collaboration with
Novartis Pharma AG in July 2012. These amounts were offset by increases in
research and development expenses of $24.1 million related primarily to IDX184
and IDX719, professional and legal costs of $4.5 million and an $8.0 million
intangible asset impairment charge in the third quarter of 2012 related to the
termination agreement with Novartis.

2012 Financial Guidance

At September 30, 2012, Idenix's cash and cash equivalents totaled $251.9
million. The Company expects that its current cash and cash equivalents will
be sufficient to sustain its operations through at least March 31, 2014. This
guidance assumes no milestone payments, license fees, reimbursement for
development programs and no financing activities.

ABOUT IDENIX

Idenix Pharmaceuticals, Inc., headquartered in Cambridge, Massachusetts, is a
biopharmaceutical Company engaged in the discovery and development of drugs
for the treatment of human viral diseases. Idenix's current focus is on the
treatment of patients with hepatitis C infection. For further information
about Idenix, please refer to www.idenix.com.

CONFERENCE CALL AND WEBCAST INFORMATION

Idenix will hold a conference call today at 4:30 p.m. ET. To access the call
please dial (877) 640-9809 U.S./Canada or (914) 495-8528 International and
enter passcode 58517577 or to listen to a live webcast go to "Events &
Presentations" in the Idenix Investor Center at www.idenix.com.A replay of
the call will also be available from November 1, 2012, at 7:30 p.m. ET until
November 8, 2012, at 11:59 p.m. ET.To access the replay, please dial (855)
859-2056 U.S./Canada or (404) 537-3406 International and enter passcode
58517577. An archived webcast will also be available for two weeks after the
call on the Idenix website.

FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" for purposes of the
safe harbor provisions of The Private Securities Litigation Reform Act of
1995, including but not limited to the statements regarding the Company's
future business and financial performance. For this purpose, any statements
contained herein that are not statements of historical fact may be deemed
forward-looking statements. Without limiting the foregoing, the words
"expect," "plans," "anticipates," "intends," "will," and similar expressions
are also intended to identify forward-looking statements, as are expressed or
implied statements with respect to the Company's potential pipeline
candidates, including any expressed or implied statements regarding the
efficacy and safety of IDX184, IDX719, IDX19368 or any other drug candidate;
the successful development of novel combinations of direct-acting antivirals
for the treatment of HCV; the likelihood and success of any future clinical
trials involving IDX184, IDX719, IDX19368 or our other drug candidates; and
expectations with respect to funding of operations and future cash balances.
Actual results may differ materially from those indicated by such
forward-looking statements as a result of risks and uncertainties, including
but not limited to the following: there can be no guarantees that the Company
will advance any clinical product candidate or other component of its
potential pipeline to the clinic, to the regulatory process or to
commercialization; management's expectations could be affected by unexpected
regulatory actions or delays; uncertainties relating to, or unsuccessful
results of, clinical trials, including additional data relating to the ongoing
clinical trials evaluating its product candidates; the Company's ability to
obtain additional funding required to conduct its research, development and
commercialization activities; the Company's expectations regarding the
benefits of the restructuring of its collaboration with Novartis; changes in
the Company's business plan or objectives; the ability of the Company to
attract and retain qualified personnel; competition in general; and the
Company's ability to obtain, maintain and enforce patent and other
intellectual property protection for its product candidates and its
discoveries. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results to be materially
different from any future results, performance or achievements expressed or
implied by such statements. These and other risks which may impact
management's expectations are described in greater detail under the heading
"Risk Factors" in the Company's annual report on Form 10-K for the year ended
December 31, 2011 and the quarterly report on Form 10-Q for the quarter ended
June 30, 2012, each as filed with the Securities and Exchange Commission (SEC)
and in any subsequent periodic or current report that the Company files with
the SEC.

All forward-looking statements reflect the Company's estimates only as of the
date of this release (unless another date is indicated) and should not be
relied upon as reflecting the Company's views, expectations or beliefs at any
date subsequent to the date of this release. While Idenix may elect to update
these forward-looking statements at some point in the future, it specifically
disclaims any obligation to do so, even if the Company's estimates change.

                                                               
                                                               
IDENIX PHARMACEUTICALS, INC.
                                                               
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
                                                               
(IN THOUSANDS, EXCEPT PER SHARE DATA)
                                                               
(UNAUDITED)
                                                               
                                   Three Months Ended  Nine Months Ended
                                    September 30,       September 30,
                                   2012    2011        2012       2011
Revenues:                                                       
Collaboration revenue – related    $32,253 $1,982      $33,268    $5,715
party
Other revenue                     --     656         36,068     1,967
Total revenues                    32,253  2,638       69,336     7,682
Operating expenses (1):                                         
Cost of revenues                   509     595         2,302      1,731
Research and development           13,469  10,190      52,604     28,530
General and administrative        6,164   3,900       16,798     12,293
Intangible asset impairment        8,045   --         8,045      --
Total operating expenses          28,187  14,685      79,749     42,554
Income (loss) from operations       4,066   (12,047)    (10,413)   (34,872)
Other income, net                  205     338         740        1,019
Income (loss) before income taxes  4,271   (11,709)    (9,673)    (33,853)
Income tax expense                 --     --         (1)        (1)
Net income (loss)                  $4,271  $(11,709) $(9,674) $(33,854)
Earnings (loss) per common share:                               
Basic                              $0.03   $(0.12)   $(0.09)  $(0.39)
Diluted                            $0.03   $(0.12)   $(0.09)  $(0.39)
Weighted average number of common                     
shares outstanding:
Basic                              124,770 96,133      113,671    87,414
Diluted                            126,847 96,133      113,671    87,414
Comprehensive income (loss):                                    
Net income (loss)                  $4,271  $(11,709) $(9,674) $(33,854)
Changes in other comprehensive                                 
income:
Foreign currency translation       163     (386)       (89)       7
adjustment
Comprehensive income (loss)         $4,434  $(12,095) $(9,763) $(33,847)
(1) Share-based compensation
expenses included in operating
expenses amounted to approximately:
Research and development           $495    $269        $1,277     $820
General and administrative         741     345         1,877      1,023

                                                                
                                                                
IDENIX PHARMACEUTICALS, INC.
                                                                
CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                
(IN THOUSANDS)
                                                                
(UNAUDITED)
                                                                
                                                   September 30, December 31,
                                                    2012          2011
                                                                
ASSETS                                                           
Cash and cash equivalents                           $251,874      $118,271
Receivables from related party                      1,376         1,157
Other current assets                                4,557         4,410
Total current assets                               257,807       123,838
Intangible asset, net                               --            8,708
Property and equipment, net                         3,908         4,696
Receivables from related party, net of current      6,460         --
portion
Other assets                                        4,712         3,802
Total assets                                       $272,887      $141,044
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
Accounts payable and accrued expenses               $13,342       $11,299
Deferred revenue, related party                     714           2,897
Other current liabilities                           713           36,329
Total current liabilities                          14,769        50,525
Other long-term obligations                         13,911        14,912
Deferred revenue, related party, net of current     4,167         24,382
portion
Total liabilities                                  32,847        89,819
Stockholders' equity                                240,040       51,225
Total liabilities and stockholders' equity         $272,887      $141,044

CONTACT: Idenix Pharmaceuticals Contacts:
         Kelly Barry (617) 995-9033 (media)
         Teri Dahlman (617) 995-9807 (investors)
 
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