Drug development company Keryx Biopharmaceuticals Inc. (Nasdaq: KERX;) has published its financial report for the second quarter. Like most drug development companies, Keryx is still recording losses on marginal revenue, although its financials reveal that the company still has $88.3 million in cash. The company claims that this sum will enable it to complete Phase III and IV clinical trials of its most advanced drug for the treatment of diabetic neuropathy, Sulonex, and still have $50 million left over at the end of the current year. The company adds that even in the event (which it terms unlikely) that the results of the Sulonex trial do not enable it to register the drug for marketing, it will still be able to use the remaining funds to move forward the other products in its pipeline.
Keryx posted a loss of $19.4 million in the second quarter of 2007, compared with $17.8 million in the corresponding quarter. The higher losses were triggered by the company's expenditure on clinical trials for Sulonex. Keryx said that it managed to recruit all the patients needed for the Sulonex Phase III trials and that it was now six months away from completion, excluding the analysis of the results, which would take an extra few weeks. The company also said that it had recruited almost half of the patient group for the Phase IV trials, which monitor long-term efficacy, and which could be extended even after the drug has been approved for use. Keryx said it expects to file for final US Food and Drug Administration (FDA) approval of Sulonex in mid-2008, once the results from the Phase III trials prove to be satisfactory.
Keryx chairman Michael Weiss said during the company's conference call that he felt that the stock price was lower than it should be, and that "the recent falls in stock price do not reflect the real situation." Keryx's stock recently hit a three-year low, and the company currently has a market cap of $366 million.
Keryx currently has two more drugs undergoing trials, of which the more advanced is Zerenex, for the treatment of renal disease, which is currently in Phase II efficacy trials. The company has also reported good results from the preliminary trials of its KRX-0401 (perifosine) drug for the treatment of multiple tumor types. Keryx is continuing to develop KRX-0401 for myeloma and sarcoma tumors, as well as renal cell carcinoma.
Published by Globes [online], Israel business news - www.globes.co.il - on July 29, 2007
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