Idenix Pharmaceuticals Reports Second Quarter and Six Month Financial Results

Idenix Pharmaceuticals Reports Second Quarter and Six Month
Financial Results
-- Initial results indicate that telbivudine has met the primary endpoint in
the phase III GLOBE study -- 


CAMBRIDGE, Mass., July 28  /PRNewswire-FirstCall/ -- Idenix Pharmaceuticals,
Inc. (NASDAQ:IDIX), a biopharmaceutical company engaged in the discovery,
development and commercialization of drugs for the treatment of human viral and
other infectious diseases, today reported unaudited financial results for the
second quarter and six months ended June 30, 2005.

For the second quarter ended June 30, 2005, Idenix reported total revenues of
$16.1 million, compared with total revenues of $42.8 million in the second
quarter of 2004. Total revenues include reimbursement by Novartis of expenses
incurred by Idenix in connection with the development of telbivudine and
valtorcitabine, Idenix's drug candidates for the treatment of hepatitis B, and
amortization of the up-front fees paid to Idenix in May 2003 when Novartis
licensed Idenix's hepatitis B drug candidates. In the 2004 quarter, total
revenues also included a $25 million milestone payment received from Novartis
related to the successful completion by Idenix of a phase I clinical trial of
valopicitabine, or NM283, Idenix's lead drug candidate for the treatment of
hepatitis C. Idenix reported a net loss of $13.4 million or a loss of $0.28 per
diluted share for the second quarter ended June 30, 2005, compared to net income
of $21.0 million, or $0.53 per diluted share for the second quarter ended June
30, 2004.

For the six months ended June 30, 2005, Idenix reported total revenues of $31.0
million, compared with total revenues of $59.5 million for the six months ended
June 30, 2004. The company reported a net loss of $22.7 million, or a loss of
$0.47 per diluted share for the six months ended June 30, 2005, compared with
net income of $15.1 million, or $0.39 per diluted share for the six months
ended June 30, 2004.

The profitability experienced by the company for the quarter ended and six
months ended June 30, 2004 was due to the recognition of the $25 million
milestone payment received from Novartis during the second quarter of 2004. At
June 30, 2005, Idenix's cash, cash equivalents and marketable securities
totaled $129.1 million.

Business Highlights

"We have achieved significant milestones in our hepatitis B and hepatitis C
development programs over the last three months," said Jean-Pierre Sommadossi,
chairman and chief executive officer of Idenix. "Most significantly, as we
reported in a separate press release today, the initial data indicate that
telbivudine has met the primary efficacy endpoint in the 1,370 patient phase
III GLOBE study. We anticipate finalizing the GLOBE data set shortly and plan
to submit the complete data as a late-breaker abstract to the American
Association for the Study of Liver Diseases for presentation at its annual
meeting in November."

Additionally, the following accomplishments were realized by Idenix over the
last three months:

  * The company presented 2-year phase IIb telbivudine data at the 2005
    Digestive Disease Week annual meeting that further demonstrated the
    correlation between early and profound viral suppression and markers of
    improved clinical outcomes.
  * The company completed enrollment (with 190 patients) of the phase IIb
    clinical trial of valopicitabine in treatment refractory patients. This
    clinical trial, which has been extended to 48 weeks, is a head-to-head
    trial comparing the combination of valopicitabine plus Pegasys(R) to
    ribavirin plus Pegasys(R) in hepatitis C genotype 1 patients who have
    previously failed at least 3 months of treatment with pegylated
    interferon plus ribavirin, the current standard therapy. Idenix expects
    to report preliminary clinical data from this phase IIb trial in the
    fall of 2005 and currently anticipates initiating a phase III clinical
    trial in this patient population in the first half of 2006.
  * The company initiated the phase IIb trial of valopicitabine in
    treatment-naive hepatitis C genotype 1 patients at clinical sites in
    late July. This trial is designed to quantitatively assess the
    antiviral dose-response relationship for valopicitabine in treatment
    regimens comprising combinations of Pegasys(R) with various
    valopicitabine dosing regimens. The goal of this study is to identify
    the optimal combination regimen (valopicitabine plus pegylated
    interferon) for further study in phase III trials in treatment naive
    patients.

  2005 Expectations


Based on the expected timing and cost of current and anticipated clinical
trials and the planned growth of Idenix's commercial operations, the company
currently expects its net use of cash to be between $70 million and $80 million
in 2005, which would result in 2005 year-end cash, cash equivalents and
marketable securities of between $77 million and $87 million.

Conference Call Information

Idenix will hold a conference call today at 4:30 p.m. Eastern time. Company
management will review financial results, provide an update on ongoing clinical
trials, review 2005 corporate milestones and discuss updated financial guidance.
A live webcast of the call will be available on the company's website
http://www.idenix.com/. Please log in approximately 10 minutes before the call
to ensure a timely connection.

About Idenix

Idenix Pharmaceuticals, Inc. (NASDAQ:IDIX) is a biopharmaceutical company
engaged in the discovery, development and commercialization of drugs for the
treatment of human viral and other infectious diseases. Idenix's current focus
is on the treatment of infections caused by hepatitis B virus, hepatitis C
virus and human immunodeficiency virus (HIV). Idenix's headquarters are located
in Cambridge, Massachusetts. The company also has drug discovery and development
operations in Montpellier, France and drug discovery operations in Cagliari,
Italy. For further information about Idenix, please refer to
http://www.idenix.com/.

Forward-looking Statements

This press release contains "forward-looking statements" within the meaning of
The Private Securities Litigation Reform Act of 1995.  Such forward-looking
statements can be identified by the use of forward-looking terminology such as
"anticipate," "plan to," "expects," or similar expressions or by express or
implied discussions regarding potential therapeutic benefits and successful
development of telbivudine, valopicitabine and the company's other product
candidates. Such forward-looking statements are subject to numerous factors,
risks and uncertainties that may cause actual events or results to differ
materially from the company's current expectations. These risks and
uncertainties relate to the results of clinical trials and other studies with
respect to telbivudine, valopicitabine and the other product candidates that
the company has under development; the timing and success of submission,
acceptance and approval of regulatory filings; the company's dependence on its
collaboration with Novartis Pharma AG; the company's ability to obtain
additional funding required to conduct its research, development and
commercialization activities; 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 telbivudine, valopicitabine, its other product candidates and its
discoveries. These and other risks are described in greater detail under the
caption "Factors That May Affect Future Results" in the company's quarterly
report on Form 10-Q for the quarter ended March 31, 2005 and filed with the
Securities and Exchange Commission and other filings that the company makes
with the Securities and Exchange Commission.

All forward-looking statements reflect the company's expectations only as of
the date of this release 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. Idenix anticipates that subsequent events and developments may
cause these views, expectations and beliefs to change. However, while Idenix
may elect to update these forward-looking statements at some point in the
future, it specifically disclaims any obligation to do so.

  Pegasys(R) is a registered trademark of Hoffmann-La Roche.

  Contact:
   Idenix Pharmaceuticals, Inc.
   Media: Teri Dahlman [phone]
   Investors: Amy Sullivan [phone]



                       IDENIX PHARMACEUTICALS, INC.

             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                  (IN THOUSANDS, EXCEPT PER SHARE DATA)

                               (UNAUDITED)


                                 Three Months Ended      Six Months Ended
                                       June 30,               June 30,
                                   2005        2004       2005       2004

  Revenues:
     License fees and
      collaborative research
      and development -
      related party               $15,983    $42,689    $30,809    $59,319
     Government research grants        99         67        176        132
         Total revenues            16,082     42,756     30,985     59,451
  Operating expenses:
     Research and development      23,190     17,684     41,653     36,094
     General and administrative     4,749      3,275      9,944      6,737
     Sales and marketing            2,414        912      3,833      1,813
         Total operating expenses  30,353     21,871     55,430     44,644
  (Loss) income from operations   (14,271)    20,885    (24,445)    14,807
  Investment income, net              803         66      1,622        144
  Other expense                        (2)        (1)        (2)        (2)
  (Loss) income before
   income taxes                   (13,470)    20,950    (22,825)    14,949
  Income tax benefit                   37        ---        126        114
  Net (loss) income              $(13,433)   $20,950   $(22,699)   $15,063

  Net (loss) income per share:
   Basic                           ($0.28)     $0.57     ($0.47)     $0.41
   Diluted                         ($0.28)     $0.53     ($0.47)     $0.39
  Shares used in calculation of net loss (income) per share:
   Basic                           48,119     36,517     48,038     36,495
   Diluted                         48,119     39,225     48,038     38,924



                       IDENIX PHARMACEUTICALS, INC.

                  CONDENSED CONSOLIDATED BALANCE SHEETS

                              (IN THOUSANDS)

                               (UNAUDITED)


                                                       June 30, December 31,
                                                          2005      2004

  ASSETS
  Cash and cash equivalents                             $46,673    $42,083
  Marketable securities                                  69,897     38,429
  Accounts receivable, related party                     15,784     16,243
  Other current assets                                    3,068      3,231
             Total current assets                       135,422     99,986
  Property and equipment, net                             7,512      6,805
  Marketable securities, net of current portion          12,503     76,754
  Other assets                                            4,258      3,573
             Total assets                              $159,695   $187,118


  LIABILITIES AND STOCKHOLDERS' EQUITY
  Accounts payable and accrued expenses                 $18,397    $19,919
  Deferred revenue, related party                         9,283      9,695
  Other current liabilities                                 344        249
               Total current liabilities                 28,024     29,863
  Long-term obligations                                   8,426      9,418
  Deferred revenue, related party, net of current
   position                                              32,489     38,779
               Total liabilities                         68,939     78,060
  Stockholders' equity                                   90,756    109,058
               Total liabilities and stockholders'
                equity                                 $159,695   $187,118


DATASOURCE: Idenix Pharmaceuticals, Inc.



CONTACT: Teri Dahlman, Media, [phone], or Amy Sullivan,

Investors, [phone], both of Idenix Pharmaceuticals, Inc.



Web site:  http://www.idenix.com/

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