Drug development company Epix Pharmaceuticals Inc. (Nasdaq:EPIX) reported a sharp cut in its quarterly loss, mostly as a result of a milestone payment following interim results in its Alzheimer's treatment trial.
For the second quarter, net loss was $2.3 million, or $0.06 per share, compared with $18 million, or $0.55 per share, for the corresponding quarter.
Revenue for the quarter was $17.4 million, compared with $1.8 million for the second quarter of 2007. The increase in revenue primarily relates to $13 million in milestone payments earned from the company’s existing collaborations during the second quarter of 2008.
Epix received a milestone payment from GlaxoSmithKline plc (NYSE; LSE: GSK) when it began its phase IIb clinical trial for its Alzheimer's drug.
As of June 30, 2008, Epix had cash, cash equivalents and short-term investments of $43.2 million, compared with $61.1 million on December 31, 2007.
On August 5, Epix announced that it had entered into a Committed Equity Financing Facility (CEFF) with Kingsbridge Capital Limited, a private investment group, to supplement its existing cash. Under the terms of the agreement, Kingsbridge committed to purchase from time to time over the next three years the lesser of up to $50 million or approximately 8.3 million newly issued shares of Epix’s common stock at certain discounts to the trading price at the time of any drawdown.
Epix reiterated its previously stated fiscal year 2008 guidance and currently expects to realize a net loss in the range of $45 to $50 million and revenue in the range of $25 to $30 million.
Management currently estimates that cash, cash equivalents and marketable securities on hand as of June 30, 2008, together with anticipated revenue to be earned in 2008, will be sufficient to fund operations through the first quarter of 2009.
Published by Globes [online], Israel business news - www.globes-online.com - on August 10, 2008
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