Epix Pharmaceuticals Inc. (Nasdaq:EPIX) today published its financial report for the first quarter of 2007. The report was delayed by an internal examination of options offered to former CEO Michael Webb. The recently completed review made no material changes to previous financial reports.
Epix posted $2 million revenue for the first quarter, compared with $1.7 million for the corresponding quarter of 2006.
Epix posted a net loss of $19.5 million ($0.60 per share) for the first quarter, compared with $4.5 million for the corresponding quarter. The company attributed the higher loss to increased R&D spending for the four clinical programs acquired through the merger with Predix. R&D expenses rose to $13.5 million for the first quarter from $3.9 million for the corresponding quarter. General and administrative expense rose to $8.6 million from $2.4 million, which the company attributed to legal and accounting costs related to the stock option probe of the company's historical stock option practices and increased costs for personnel and infrastructure.
The company had $95 million in cash, cash equivalents and short-term investments. The company believes that its cash in hand and anticipated revenue in 2007-08 will suffice for operations through 2008, exclusive of any significant milestone payments or opt-in fees.
Recent highlights include positive results from the Phase 1b clinical trial of PRX-07034 treatment for obesity and cognitive impairment. The trial demonstrated that the drug was safe for treating obesity and suggested that it was effective in both designated fields. The company also filed an appeal with the US Food and Drug Administration (FDA) for its novel blood-pool imaging agent, Vasovist, and a response is expected during the second quarter. In March, the company initiated Phase IIb clinical trial of its PRX-00023 treatment for major depressive disorder (MDD), after the drug was found ineffective in treating anxiety.
By mid-year, Epix is due to publish the results of the Phase IIb clinical trial PRX-08066 in patients with pulmonary hypertension, considered one of the company’s strong cards. The company is due publish the results of its Phase IIa trial of PRX-03140 for Alzheimer's disease in late 2007.
Published by Globes [online], Israel business news - www.globes.co.il - on May 9, 2007
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