Inhibitex Inc. (INHX) filed Quarterly Report for the period ended 2009-09-30.
INHIBITEX INC., headquartered in Alpharetta, Georgia, is a biopharmaceutical company focused on developing products to treat and prevent serious infectious diseases. In addition to FV-100, the Company's anti-viral pipeline includes a series of HIV integrase inhibitors and HCV polymerase inhibitors in preclinical development, and compounds active against cytomegalovirus. Inhibitex has also licensed certain of its proprietary MSCRAMM protein technology to Wyeth for the development of staphylococcal vaccines and to 3M for the development of diagnostics. Inhibitex Inc. has a market cap of $43.5 million; its shares were traded at around $0.9966 with and P/S ratio of 13.9.
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Summary. We reported a net loss of $4.5 million for the three months ended September 30, 2009, as compared to a net loss of $4.0 million in the same quarter in 2008. Basic and diluted net loss per share was $0.10 for the three months ended September 30, 2009, as compared to basic and diluted net loss of $0.09 for the same quarter in 2008. The increase in net loss and net loss per share in the third quarter of 2009 was the result of higher research and development expense, lower revenue from collaborative license and development agreements and a decrease in net interest income, offset in part by a reduction in general and administrative expense. We expect to incur losses for the foreseeable future as we intend to continue to support the development of our antiviral programs.
Revenue. Revenue decreased to $0.3 million for the three months ended September 30, 2009 from $0.8 million in the same quarter in 2008. This decrease of $0.5 million, or 63%, was the result of certain upfront license fees received by the Company in 2007 and 2008 being fully amortized to revenue as of the end of 2008 and to a lesser extent, lower periodic research-associated support fees received by the Company.
Summary. We reported a net loss of $12.9 million for the nine months ended September 30, 2009, as compared to a net loss of $9.6 million for the same period in 2008. Basic and diluted net loss per share was $0.30 for the nine months ended September 30, 2009, as compared to basic and diluted net loss of $0.22 per share for the same period in 2008. The increase in net loss and net loss per share for the nine months ended September 30, 2009, as compared to the same period of 2008, was the result of an increase in research and development expense, a decrease in revenue from collaborative license and development agreements and lower net interest income, offset in part by a reduction in general and administrative expense. We expect to incur losses for the foreseeable future as we intend to continue to support the development of our antiviral programs.
Direct clinical, preclinical and manufacturing costs increased due to a $1.1 million increase in expenses for our HCV program for preclinical studies and material, a $0.6 million increase in expenses related to our Phase I and Phase II trials for FV-100, and a $1.4 million reduction in expense resulting from a favorable settlement of a prior arbitration award against us in the second quarter of 2008, offset in part by $0.5 million reduction in expenses for other programs. Salaries, benefits, and share-based compensation decreased primarily due to lower share-based compensation expenses and lower recruiting and relocation fees. License fees, patent-related legal fees and other expenses decreased slightly due to reduced spending. Depreciation and facility related expenses decreased primarily due to a reduction in our facility costs as a result of partially subleasing our facility in 2008.
For the nine months ended September 30, 2009, cash, cash equivalents and short-term investments decreased by $12.0 million, from $33.1 million to $21.1 million. This decrease was primarily the result of net cash used for operating activities and to a lesser extent, the repayment of capital lease obligations and notes payable.
Net cash used for operating activities was $11.7 million for the nine months ended September 30, 2009, reflecting our net loss for the period of $12.9 million, which was offset by a net increase in operating liabilities over operating assets of $0.2 million and non-cash charges of $1.0 million. Our net loss resulted largely from the cost of funding our clinical trials, preclinical studies, other research and development activities, and general and administrative expenses, offset in part by the amortization of deferred revenue from our license and collaboration agreements and net interest income. The net increase in operating liabilities over operating assets reflects a $0.6 million increase in accrued expenses and a $0.1 million increase in accounts payable, offset by a $0.4 million increase in prepaid expenses and other assets and a $0.1 million decrease in deferred revenue.
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