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Press Release - RXi Pharmaceuticals Corporation (RXII-Nasdaq)
People should look at RXi during 2010 and thereafter, as we evolve from being more of a research-focused company based on our RNAi therapeutic platform to one who is applying this technology in the development of pharmaceutical candidates. We will be providing further guidance and articulating specific therapeutic areas and disease targets of focus for the company... - Noah D. Beerman (RXII) (Interview published April 12, 2007)
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RXi Pharmaceuticals Reports Financial
Results for the Second Quarter of 2010
"2010 is a transitional year for RXi as we evolve from a research-focused company to one identified by compelling product development programs, a focused therapeutic strategy, and validating corporate partnerships," said Noah D. Beerman, President and Chief Executive Officer of RXi. "By defining our therapeutic strategy, establishing collaborations to support continued technology development, advancing our RNAi therapeutic platform, and raising funds to support our product development we have laid the foundation for continued success in all aspects of our business."
Quarterly and Other Recent Highlights
Quarterly Financial Highlights:
Cash, Cash Equivalents and Short Term Investments
As of June 30, 2010, cash, cash equivalents and short term investments totaled $11.1 million, compared with cash and cash equivalents of $5.7 million at December 31, 2009. This increase is due to the company's receipt of net proceeds of approximately $15.2 million from a registered direct offering in March 2010, partially offset by cash used in operations of $6.2 million for the six months ended June 30, 2010 and $3.8 million in costs associated with the redemption of common stock.
For the second quarter of 2010, the Company reported a net loss of approximately $2.1 million compared with a net loss of $5.1 million for the same period in 2009. The decrease in net loss of $3.0 million, or 59% includes the decrease in the loss from operations of $0.2 million and the increase of $2.8 million in other income, of which $2.6 million is a non-cash gain related to the change in the fair value of warrants issued in connection with several financing transactions. The decrease in the loss from operations of $0.2 million, or 4%, is due primarily to a $0.7 million, or 23% decrease in research and development expenses offset by a $0.5 million, or 25% increase, in general and administrative expenses as discussed below. This resulted in a net loss of $0.12 per share on both a basic and diluted basis, based on 18.4 million weighted average shares outstanding for the second quarter of 2010 compared with a net loss of $0.37 per share on both a basic and diluted basis, based on 13.8 million weighted average shares outstanding for the same period in 2009.
Research and Development Expenses
Research and development expenses for the second quarter of 2010 were $2.3 million, including approximately $0.8 million in non-cash stock-based compensation, compared with $3.0 million, including approximately $1.2 million in non-cash stock-based compensation, for the second quarter of 2009. The decrease of $0.7 million, or 23%, was primarily due to a decrease in non-employee non-cash stock based compensation offset by an increase in employee non-cash stock based compensation expenses as a result of additional headcount.
General and Administrative Expenses
General and administrative expenses for the second quarter of 2010 were $2.5 million, including $0.8 million in non-cash stock based compensation from common stock options issued to employees and common stock warrants issued for investment advisory services, compared with $2.0 million including $0.6 million in non-cash stock based compensation from common stock options issued to employees and common stock warrants issued for investment advisory services for the second quarter of 2009. The increase of $0.5 million, or 25%, was primarily due to an increase in both cash and non-cash compensation as a result of additional headcount as well as an increase in non-cash compensation associated with investment advisory services.
About RXi Pharmaceuticals Corporation
RXi Pharmaceuticals is a recognized leader in RNAi-based therapeutic discovery and development with a comprehensive therapeutic platform that includes both RNA interference (RNAi) compounds and delivery methods. The company is leveraging this broad and integrated RNAi therapeutic platform to build a pipeline of RNAi therapeutics for the treatment of a number of disease areas, including its core focus of developing treatments for anti-scarring and retinal disorders as well as a continued interest in oncology and indications accessible by spinal cord delivery. RXi Pharmaceuticals believes it is well positioned to compete successfully in the RNAi therapeutics market based on the strength of its next generation therapeutic platform, experienced management team, accomplished Scientific Advisory Board, including Nobel Laureate, Dr. Craig Mello, and its broad intellectual property position in RNAi chemistry and delivery. http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.rxipharma.com&esheet=6393391&lan=en-US&anchor=www.rxipharma.com&index=1&md5=94c3a6f0d7c3429c945af25f4a6cc0eb
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future expectations, plan and future development of RXi Pharmaceutical Corporation's products and technologies. These forward-looking statements about future expectations, plans and prospects of the development of RXi Pharmaceutical Corporation's products and technologies involve significant risks, uncertainties and assumptions, including the risk that the development of our RNAi-based therapeutics may be delayed or may not proceed as planned and we may not be able to complete development of any RNAi-based product, the risk that the FDA approval process may be delayed for any drugs that we develop, risks related to development and commercialization of products by our competitors, risks related to our ability to control the timing and terms of collaborations with third parties and the possibility that other companies or organizations may assert patent rights that prevent us from developing our products. Actual results may differ materially from those RXi Pharmaceuticals Corporation contemplated by these forward-looking statements. RXi Pharmaceuticals Corporation does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this release.
SOURCE: RXi Pharmaceuticals Corporation
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