iShares Core MSCI International Developed Markets ETF

Fourth-quarter revenue was $23.3 million, down $6.1 million year over year but up $3 million, or 14%, sequentially. Fourth-quarter net loss was $14 million, or $0.18 per share, versus a net loss of $8.8 million, or $0.12 per share, in the year-ago quarter. Full-year fiscal 2008 revenue was $77.8 million, up $11.7 million, or 18%, from $66.1 million in fiscal 2007. Full-year net loss was $65.6 million, or $0.86 per share, compared with a $103.8 million loss, or $1.61 per share, in fiscal 2007. Cash, cash equivalents, and marketable securities were $131.3 million at September 30, up about $78.7 million from the prior quarter. For fiscal 2009, management raised revenue guidance to approximately $95 million, with SANCTURA at about $50 million, VANTAS at $20 million, SUPPRELIN LA at $19 million to $20 million, and the remainder from VALSTAR, DELATESTRYL, and pagoclone-related revenue. Operating expenses were expected to decrease slightly, with R&D higher due to octreotide and pagoclone and SG&A slightly lower due to restructuring.

Glenn Cooper framed the year as one major setback around NEBIDO but otherwise a strong operational period, saying the company had responded "forcibly and effectively" and was positioned for a "highly successful 2009." He said FDA and the company had aligned on using the combined Phase II/III/IV database of about 14,000 injections from roughly 2,600 patients to address the cough concern, and he expects resubmission by the end of the first calendar quarter next year. He was upbeat about the marketed portfolio, especially SUPPRELIN LA and VANTAS, and stressed that the company’s 2009 milestones should show recovery.

Michael Rogers said fourth-quarter revenue reached $23.3 million and full-year revenue was $77.8 million, while the quarterly net loss was $14 million and the full-year net loss was $65.6 million. He attributed the balance-sheet improvement to the $105 million nonrecourse financing and said cash and marketable securities ended at $131.3 million. He noted fourth-quarter operating cash burn of about $12 million, previously expected to average about $10 million per quarter in fiscal 2009 before NEBIDO-related prelaunch spending, and said 2009 operating expenses should decrease slightly overall even as R&D rises and G&A falls due to restructuring.

Analysts focused on three issues: whether the convert could be restructured, what additional licensing revenue might come from Europe and other regions, and whether VALSTAR and VANTAS guidance was conservative. Management said convert restructuring was not off the table and that discussions with noteholders were ongoing, but market conditions made it harder. On licensing, management said they were pursuing opportunities for octreotide, VANTAS, SUPPRELIN LA, and VALSTAR globally but had not included those potential deals in guidance because revenue structures were uncertain. For VALSTAR and VANTAS, Glenn Cooper said guidance was intentionally conservative and could be raised later if trends continued.