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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

Source: PRNewsWire

ACL is in the portfolios of John Hussman of Hussman Economtrics Advisors, Inc..


Stocks Discussed: NBY, ACL,
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