Opexa Reports 3Q Financial Results
by
Nov 05, 2009
THE WOODLANDS, Texas -- Opexa Therapeutics, Inc. (NASDAQ: OPXA) has released financial results for the quarter ended September 30, 2009, and provided details on further developments.
Opexa recognized a gain on the sale of assets of $3 million for the third quarter, attributable to the sale of the the stem cell technology program to Novartis. In addition, the company recognized other income of $0.5 million for the quarter attributable to the completion of the initial technology transfer fee milestone and pursuant to the terms of the agreement with Novartis.
Opexa reported net income of approximately $2.2 million, or $0.18 per basic share and $0.14 per diluted share, compared with a net loss of approximately $3.1 million or $0.28 per share (basic and diluted), for the third quarter of 2008. The income in 2009 is attributable to the agreement with Novartis and a reduction of costs associated with the Phase IIb clinical trial of Tovaxin that was completed in 2008, a reduction in staff and a decrease in non-cash stock compensation expense.
For the nine months ended September 30, 2009, Opexa reported a net loss of approximately $0.3 million, or $0.02 per share (basic and diluted), compared with a net loss of approximately $9.9 million or $0.99 per share (basic and diluted), for the same period last year.
“As we move forward during the fourth quarter and look ahead to 2010, we are quite pleased with our overall situation, especially in comparison to our circumstances last year at this time,” stated Neil K. Warma, president and CEO of Opexa. “The Novartis stem cell transaction bolstered our financial resources and consequently leaves us with $4.1 million in cash as of the end of October. The terms of the agreement allow Opexa to benefit considerably from progress in the stem cell technology’s clinical development and potential commercial success in Novartis’ capable hands. We have a very novel, late stage clinical asset in Tovaxin®, our autologous cellular immunotherapy treatment for MS – a current $9 billion market with a still significant unmet medical need and currently served by several approved drug therapies.”
“In the weeks ahead, our primary focus will continue to be on advancing our ongoing partnership discussions around Tovaxin,” continued Mr. Warma.
“2010 promises to be an exciting year for Opexa and we look forward to sharing developments with our various stakeholders as the year unfolds. We will continue our undeterred focus on what we believe to be one of the most promising therapies in development for MS. At our current burn rate, today’s cash resources are sufficient to fund the company’s operations through the 2010 calendar year,” added Mr. Warma.
Source: Opexa Therapeutics, Inc.
