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NovaBay Pharmaceuticals, Inc. Reports Second Quarter 2009 Financial Results
Posted by: gurufocus (IP Logged)
Date: August 14, 2009 10:19AM
Press Release: NovaBay Pharmaceuticals, Inc. Reports Second Quarter 2009 Financial Results
EMERYVILLE, Calif., Aug. 14 /PRNewswire-FirstCall/ -- NovaBay((R)) Pharmaceuticals, Inc. (NYSE Amex: NBY), a clinical stage biopharmaceutical company developing first-in-class anti-infective products for the treatment and prevention of a wide range of infections without causing resistance, reported today its financial results and operational highlights for the second quarter of 2009 ended June 30, 2009.
License and collaboration revenue for the second quarter of 2009 increased $ 0.9 million to $2.3 million from $1.4 million for the second quarter of 2008. This revenue consisted almost exclusively of amounts earned under the license and collaboration agreements with Alcon (NYSE: ACL), and beginning with this quarter, Galderma S.A., for amortization of the upfront technology access fees, receipt of milestone payments, and other amounts that have been reimbursed for the funding of research and development activities performed during the period.
The net loss for the second quarter of 2009 was $0.3 million, or $0.01 per share, compared to a net loss of $2.4 million, or $0.11 per share, reported for the second quarter of 2008. As of June 30, 2009, the company\'s cash, cash equivalents and short-term investments totaled $10.7 million, a net decrease of only $1.4 million from the $12.1 million reported at December 31, 2008. This represents a 75% reduction from the $5.5 million decrease during the first six months of 2008. The decreased burn rate in 2009 was largely due to cost containment measures, delayed research, development, and clinical expenses and receipt of a milestone and higher reimbursement payments from Alcon and upfront payments from Galderma S.A.
Second Quarter 2009 Financial Results
License and collaboration revenue for the second quarter of 2009 increased 63.5% to $2.3 million from $1.4 million for the second quarter of 2008. License and collaboration revenue consists of the amortization of the upfront technology access fees previously paid by our corporate partners, and reimbursements for the funding of research and development activities, and payments for milestones achieved.
The net loss for the second quarter of 2009 was $0.3 million, or $0.01 per share, compared to a net loss of $2.4 million, or $0.11 per share, reported for the second quarter of 2008.
Research and development expenses for the quarter ended June 30, 2009 totaled $1.4 million, compared to $2.4 million for the quarter ended June 30, 2008. The decrease was due to budget reductions at year end 2008 resulting in decreased headcount, and delayed research, development, and clinical expenses.
General and administrative expenses for the quarter ended June 30, 2009 were $1.2 million, compared to $1.6 million in the comparable 2008 period. Employee costs related to general and administrative expenses decreased as a result of staff reductions at year end 2008. Professional services costs increased primarily as a result of increased Sarbanes-Oxley implementation and year end audit costs.
About NovaBay Pharmaceuticals, Inc.
NovaBay Pharmaceuticals is a mid-stage biopharmaceutical company focused on developing its proprietary and patented Aganocide((R)) compounds, first-in-class, novel, synthetic anti-infective product candidates that are bioequivalent to the active antimicrobial molecules generated within white blood cells to treat and prevent a wide range of infections without causing resistance. NovaBay has internal development programs aimed at addressing hospital and respiratory infections. The company has a licensing and research collaboration agreement with Alcon, Inc. for use of its Aganocides in the eye, ear and sinus, and in contact lens solutions. NovaBay has entered into an agreement with Galderma S.A. to develop and commercialize Aganocides in acne, impetigo and other dermatological indications. NovaBay((R)) and Aganocide((R)) are trademarks of NovaBay Pharmaceuticals, Inc. For more information on NovaBay, visit www.novabaypharma.com.
NOVABAY PHARMACEUTICALS, INC (formerly NovaCal Pharmaceuticals Inc.) (a developmental stage company) CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) December 31, June 30, 2008 2009 (unaudited) ASSETS Current assets: Cash and cash equivalents $12,099 $8,000 Short-term investments 2,685 Prepaid expenses and other current assets 414 769 Total current assets 12,513 11,454 Property and equipment, net 1,456 1,575 TOTAL ASSETS $13,969 $13,029 LIABILITIES AND STOCKHOLDERS\' EQUITY Liabilities: Current liabilities: Accounts payable $406 $533 Accrued liabilities 1,166 636 Capital lease obligation 42 29 Equipment loan 366 387 Deferred revenue 2,500 3,100 Total current liabilities 4,480 4,685 Capital lease obligation - non-current 7 Equipment loan - non-current 470 271 Deferred revenue - non-current 1,667 617 Total liabilities 6,624 5,573 Stockholders\' Equity: Common stock, $0.01 par value; 65,000 and 65,000 shares authorized at December 31, 2008 and June 30, 2009, respectively, 21,471 and 21,980 issued and outstanding at December 31, 2008 and June 30, 2009, respectively 215 220 Additional paid-in capital 33,718 34,434 Accumulated other comprehensive income (loss) (3) Accumulated deficit during development stage (26,588) (27,195) Total stockholders\' equity 7,345 7,456 TOTAL LIABILITIES AND STOCKHOLDERS\' EQUITY $13,969 $13,029
NOVABAY PHARMACEUTICALS, INC (formerly NovaCal Pharmaceuticals Inc.) (a developmental stage company) CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Cumulative Period from July 1, 2002 (date of development stage Three Months Ended Six Months Ended inception) to June 30, June 30, June 30, 2008 2009 2008 2009 2009 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) REVENUE License and collaboration revenue $1,442 $2,357 $2,933 $4,968 $19,136 EXPENSES Operating Expenses: Research and development 2,371 1,444 5,246 2,805 27,812 General and administrative 1,575 1,191 3,031 2,769 19,734 Total operating expenses 3,946 2,635 8,277 5,574 47,546 Interest expense (24) (20) (49) (43) (188) Other income (expense), net 118 9 306 42 1,417 Total Other income (expense), net 94 (11) 257 (1) 1,229 Net loss before income taxes (2,410) (289) (5,087) (607) (27,181) Provision for income taxes 2 14 Net loss $(2,410) $(289) $(5,089) $(607) $(27,195) Net loss per share: Basic and diluted $(0.11) $(0.01) $(0.24) $(0.03) Shares used in per share calculations: Basic and diluted 21,334 21,931 21,311 21,775
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Stocks Discussed: NBY, ACL,