Idera Pharmaceuticals Reports Third Quarter 2012 Financial Results

  Idera Pharmaceuticals Reports Third Quarter 2012 Financial Results

        Balance Sheet Strengthened with Recent $7.0 Million Financing

Business Wire

CAMBRIDGE, Mass. -- November 12, 2012

Idera Pharmaceuticals, Inc. (Nasdaq: IDRA), a biotechnology company developing
Toll-like receptor (TLR) targeted product candidates for the treatment of
autoimmune diseases and as vaccine adjuvants, today reported its financial
results and business highlights for the third quarter ended September 30,

Net loss for the three months ended September 30, 2012, was $4.8 million, or
$0.17 per diluted share, compared to a net loss of $5.5 million, or $0.20 per
diluted share, for the same period in 2011. For the nine-month period, the
Company's net loss was $15.9 million, or $0.58 per diluted share, compared to
a net loss of $18.6 million, or $0.67 per diluted share, for the same period
in 2011.

“During 2012, we have met the key objectives of our autoimmune disease drug
development program,” said Sudhir Agrawal, D.Phil., Chief Executive Officer of
Idera Pharmaceuticals. “Recently, we completed recruitment of patients with
psoriasis in our Phase 2 trial of IMO-3100 and anticipate top-line data for
some of the endpoints of this study to be available by year end. In addition,
the Investigational New Drug (IND) for our second candidate, IMO-8400, is
currently active and we anticipate announcing the initiation of the clinical
development for the treatment of lupus as the first indication during
November. We expect that data from these studies will inform our decisions on
the next steps in the development of our autoimmune disease program.”

“We are pleased to have strengthened the Company’s balance sheet with the
recently completed $7 million financing,” said Lou Arcudi, Chief Financial
Officer of Idera Pharmaceuticals. “With the proceeds from this financing and
the Company’s cash and cash equivalents at the end of the third quarter, Idera
is well-positioned to reach key near term milestones in our autoimmune disease

Recent Business and Clinical Highlights

  *In the third quarter of 2012, the Company completed enrollment in a Phase
    2 randomized, double-blind, placebo-controlled, multi-center clinical
    trial of IMO-3100 in patients with moderate to severe plaque psoriasis.
    IMO-3100, a dual antagonist of TLR7 and TLR9, is the lead clinical
    candidate being developed by the Company initially for the treatment of
    psoriasis. In this study, 44 patients with moderate to severe plaque
    psoriasis were randomized 1:1:1 to receive IMO-3100 at 0.16 or 0.32 mg/kg
    or placebo by subcutaneous injection once weekly for four weeks.
    Assessments of safety are being performed throughout the treatment and
    four-week follow-up periods. Psoriasis intensity, using Psoriasis Area
    Severity Index (PASI), mean focal psoriasis severity and Physician Global
    Assessment (PGA) scores, will be assessed pre- and post-treatment. Skin
    biopsies of psoriasis lesions will be obtained to determine mean epidermal
    thickness prior to treatment and at end of treatment. Analyzed by a
    central laboratory, the biopsy analysis also includes immunohistologic
    staining for changes in immune cell infiltrates and cytokine expression.
    The Company anticipates reporting top-line data for some of the endpoints
    of the trial by year-end 2012.
  *The Company announced in the third quarter of 2012 that its IND
    application for IMO-8400 with the US Food and Drug Administration (FDA)
    became active. IMO-8400 is an antagonist of TLRs 7, 8 and 9, which the
    Company is developing initially for the treatment of lupus. The Company
    anticipates announcing the initiation of a Phase 1 clinical trial during
    November 2012 to evaluate the safety and pharmacodynamics of IMO-8400 in
    healthy subjects. Following successful completion of the escalating
    single- and multiple-dose Phase 1 study and additional funding, the
    Company expects to initiate a Phase 2 clinical trial of IMO-8400 in lupus
  *In October, the Company made a presentation entitled “Inflammasome
    Activation is Blocked by Antagonists of Endosomal Toll-Like Receptors:
    Implications in Treatment of Autoinflammatory Disorders” at the 8th Annual
    Meeting of the Oligonucleotide Therapeutics Society. In this presentation,
    new data from preclinical studies showed that in the studies selective
    inhibition of Toll-like Receptors (TLRs) 7, 8, and 9, which play a key
    role in inflammation and immunity, resulted in inhibition of inflammasome
    activation and induction of Interleukin 1 beta (IL-1β), a pro-inflammatory
    cytokine that has been shown to be involved in Behçet's disease,
    non-infectious uveitis, cardiovascular disease, and other
    auto-inflammatory diseases.

Financial Results

As of September 30, 2012, cash and cash equivalents totaled $8.4 million
compared to $24.6 million at December 31, 2011.

In November 2012, the Company raised $7.0 million in gross proceeds through
the issuance and sale of preferred stock and warrants. These proceeds are not
included in cash and cash equivalents at the end of third quarter 2012.

Research and development expenses for the three months ended September 30,
2012, totaled $3.3 million compared to $3.6 million for the same period in
2011. For the nine-month period, R&D expenses totaled $10.6 million compared
to $12.3 million for the same period in 2011.

General and administrative expenses for the three months ended September 30,
2012, totaled $1.5 million compared to $1.9 million for the same period in
2011. For the nine-month period, G&A expenses totaled $5.0 million compared to
$6.4 million for the same period in 2011.

About TLRs and Idera's Pipeline

Toll-like Receptors (TLRs) play a key role in inflammation and immunity. Of
the 10 human TLRs identified to date, Idera is developing compounds targeted
to TLRs 3, 7, 8, and 9, which are expressed in different cells and serve
unique functions. Using its chemistry-based approach, Idera has created novel
drug candidates that modulate immune responses through either activation or
inhibition of specific TLRs. Inhibition of specific TLRs may be useful in
treating autoimmune disorders, such as systemic lupus erythematosus (SLE),
psoriasis, and rheumatoid arthritis, by blocking the induction of multiple
cytokines and signaling pathways. Idera's lead clinical candidates for
application in autoimmune diseases are IMO-3100, an antagonist of TLR7 and
TLR9, and IMO-8400, an antagonist of TLRs 7, 8, and 9.

A characteristic of autoimmune diseases such as SLE and psoriasis is the
production of immune complexes with self-nucleic acids. These abnormal immune
complexes activate TLRs 7, 8, and 9 and induce multiple cytokines that cause
further damage to the body's own tissues and organs, thereby releasing more
self-nucleic acids. Thus, a pathologic amplification cycle is established,
promoting disease maintenance and progression. In preclinical models of
several autoimmune diseases, IMO-3100 and IMO-8400 inhibited TLR-mediated
immune responses, broke the cycle of disease maintenance and progression
through decreases in Th1, Th17 and inflammasome pathways, and led to
improvements in multiple measures of disease

About Psoriasis

Psoriasis is a systemic immune-mediated disorder, characterized by
inflammatory skin and joint manifestations. The most common form, plaque
psoriasis, appears as raised, red patches covered with a silvery white buildup
of dead skin cells. Psoriasis can occur on any part of the body and is
associated with other serious health conditions, such as diabetes, heart
disease and depression.

Psoriasis is the most prevalent autoimmune disease in the U.S., according to
the National Psoriasis Foundation, affecting as many as 7.5 million Americans.

About Systemic Lupus Erythematosus

Lupus is a chronic autoimmune disease where the body's immune system becomes
hyperactive and attacks normal healthy tissue. This results in symptoms such
as inflammation, swelling, and damage to joints and almost every major organ
in the body, including the heart, kidneys, skin, lungs and brain. According to
The Lupus Foundation of America, an estimated 1.5 million Americans and at
least five million people worldwide have a form of lupus.

About Idera Pharmaceuticals, Inc.

Idera Pharmaceuticals applies its proprietary Toll-like receptor (TLR) drug
discovery platform to create immunomodulatory drug candidates and has a
clinical development program in autoimmune diseases. Additionally, Idera has a
collaboration with Merck & Co. for the use of TLR-targeted candidates as
vaccine adjuvants for cancer, infectious diseases and Alzheimer’s disease. The
Company is also advancing its gene-silencing oligonucleotide (GSO) technology
for the purpose of inhibiting the expression of disease-promoting genes. For
more information, visit

Idera Forward Looking Statements

This press release contains forward-looking statements concerning Idera
Pharmaceuticals, Inc. that involve a number of risks and uncertainties. For
this purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements. Without
limiting the foregoing, the words "believes," "anticipates," "plans,"
"expects," "estimates," "intends," "should," "could," "will," "may," and
similar expressions are intended to identify forward-looking statements. There
are a number of important factors that could cause Idera's actual results to
differ materially from those indicated by such forward-looking statements,
including whether Idera’s cash resources will be sufficient to fund the
Company’s continuing operations and the further development of the Company’s
autoimmune disease program.; whether results obtained in preclinical studies
and early clinical trials, such as the results from the preclinical studies
referred to in this release, will be indicative of results obtained in future
clinical trials; whether products based on Idera's technology will advance
into or through the clinical trial process on a timely basis or at all and
receive approval from the United States Food and Drug Administration or
equivalent foreign regulatory agencies; whether, if the Company's products
receive approval, they will be successfully distributed and marketed; whether
the Company will be able to license any of its TLR target candidates on a
timely basis or at all; whether the Company's collaboration with Merck & Co,
Inc., will be successful; whether the patents and patent applications owned or
licensed by the Company will protect the Company's technology and prevent
others from infringing it; and such other important factors as are set forth
under the caption "Risk Factors" in Idera's Quarterly Report on Form 10-Q for
the quarter ended September 30, 2012 which important factors are incorporated
herein by reference. Idera disclaims any intention or obligation to update any
forward-looking statements.

Idera Pharmaceuticals, Inc.
Condensed Statements of Operations (Unaudited)
(In thousands, except per share data)
                              Three Months Ended     Nine Months Ended
                               September 30,           September 30,
                               2012       2011        2012        2011
Revenues                       $ 3         $ 4         $ 40         $ 45
Operating Expenses
Research & Development           3,278       3,574       10,595       12,269
General & Administrative        1,477     1,948     5,014      6,400
Total Operating Expenses        4,755     5,522     15,609     18,699
Loss from Operations             (4,752)     (5,518)     (15,569)     (18,624)
Decrease in Fair Value of        109         -           106          -
Warrant Liability
Other, net                      (26)      29        21         8
Net Loss                         (4,669)     (5,489)     (15,442)     (18,616)
Preferred Stock Dividends       160       -         480        -
Net Loss Applicable to         $ (4,829)  $ (5,489)  $ (15,922)  $ (18,616)
Common Stockholders
Basic and Diluted Net Loss
Per Common Share Applicable    $ (0.17)   $ (0.20)   $ (0.58)    $ (0.67)
to Common Stockholders
Shares Used in Computing
Basic and Diluted Net Loss      27,640    27,632    27,639     27,618
Per Common Share Applicable
to Common Stockholders

Idera Pharmaceuticals, Inc.
Condensed Balance Sheet Data
(In thousands)
                                          September 30,   December 31,
                                          2012            2011
Cash and Cash Equivalents                 $   8,352       $   24,571
Other Assets                                 723            1,024
Total Assets                              $   9,075       $   25,595
Total Liabilities                         $   5,419       $   7,650
Redeemable Preferred Stock                    5,921           5,921
Stockholders' (Deficit) Equity               (2,265)        12,024
Total Liabilities, Redeemable Preferred
Stock & Stockholders' Equity              $   9,075       $   25,595


Idera Pharmaceuticals, Inc.
Lou Arcudi, 617-679-5517
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