Emisphere Technologies Inc. (EMIS) filed Quarterly Report for the period ended 2009-09-30.
Emisphere Technologies is a biopharmaceutical company focused on the development of a family of oral heparin products; the application of proprietary synthetic chemical compounds to serve as ``carriers`` to facilitate the transport of therapeutic macromolecules and other compounds across biological membranes; and the development, in conjunction with the company's pharmaceutical collaborators, of oral formulations of selected therapeutic macromolecules. Emisphere Technologies Inc. has a market cap of $24.52 million; its shares were traded at around $1.05 with and P/S ratio of 97.68. Emisphere Technologies Inc. had an annual average earning growth of 19.6% over the past 5 years.
Highlight of Business Operations:
The Company also continues to focus on improving operational efficiency. On December 8, 2008 we announced plans to strengthen our financial foundation while maintaining our focus on advancing and commercializing the Eligen® Technology. By closing our research and development facility in Tarrytown, New York and utilizing independent contractors to conduct essential research and development, we have reduced our annual operating costs by approximately 55% from 2008 levels. Annual cash expenditures were reduced by approximately $11 million and the resulting cash burn rate to support continuing operations is approximately $8 million per year. Additionally, we expect to accelerate the commercialization of the Eligen® Technology in a cost effective way and to gain operational efficiencies by tapping into more advanced scientific processes independent contractors can provide.
The Agreement provides that the Company shall make the following payments to BMR: (a) $1 million, payable upon execution of the Agreement, (b) $0.5 million, payable six months after the execution date of the Agreement, and (c) $0.75 million, payable twelve months after the execution date of the Agreement. By terminating its Tarrytown lease, the Company’s monthly cash burn rate is reduced by approximately $0.3 million immediately. In addition, a total of approximately $14 million in future lease payments were eliminated. Through this lease termination agreement the Company realized a critical milestone in its cost control plan, which will help meet its cash burn target of between $7 million and $8 million per year.
Other expense increased $1.3 million for the three months ended September 30, 2009 in comparison to the same period last year primarily due to a $0.4 million decrease in the change in fair value of derivative instruments due to relative changes in stock price, approximately $0.5 million increase in interest expense in connection with the adoption of ASC 815-40-15-5 and approximately $0.3 million decrease in sublease income in connection with the termination of the Lease Agreement and sub-leases for our laboratory facilities in Tarrytown, NY.
As a result of the above factors, we had a net loss of $4.0 million for the three months ended September 30, 2009, compared to a net loss of $5.1 million for the three months ended September 30, 2008.
EMIS is in the portfolios of Carl Icahn of Icahn Capital Management LP.
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