NANOSPHERE, INC. (NSPH, Financial) filed Quarterly Report for the period ended 2010-06-30.
Nanosphere, Inc. has a market cap of $135 million; its shares were traded at around $4.75 with and P/S ratio of 61. NSPH is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Columbia Wanger of Columbia Wanger Asset Management, Jim Simons of Renaissance Technologies LLC.
Sales, general and administrative expenses increased from $3.7 million for the three month period ended June 30, 2009 to $9.1 million for the three month period ended June 30, 2010. The $5.4 million increase in sales, general and administrative expenses for the three months ended June 30, 2010 resulted from accrued legal settlement expenses of $3.5 million, a $1.5 million increase in litigation defense expenses and a $0.5 million increase in non-cash share-based compensation associated with options and restricted stock granted in the fourth quarter of 2009, partially offset by a decrease in clinical trial expenses associated with the FAST-TRAC cTnI marketing study.
Revenues were $1.3 million for the six month period ended June 30, 2010, as compared to $0.7 million for the six month period ended June 30, 2009. Product sales increased from $0.5 million for the six month period ended June 30, 2009 to $0.7 million for the same period in 2010. Service revenue also increased from $0.2 million for the six month period ended June 30, 2009 to $0.6 million for the same period in 2010.
Sales, general and administrative expenses increased from $6.8 million for the six month period ended June 30, 2009 to $13.2 million for the six month period ended June 30, 2010 due to a $3.5 million contingency reserve as well as a $1.5 increase in litigation defense expenses related to Eppendorf AG litigation, as previously discussed. In addition, non-cash share-based compensation increased $1.2 million due to options and restricted stock granted in the fourth quarter of 2009.
From our inception in December 1999 through December 31, 2009, we have received net proceeds of $103.9 million from the sale of convertible preferred stock and issuance of notes payable that were exchanged for convertible preferred stock, $102.2 million from our November 2007 initial public offering, $35.4 million from our October 2009 underwritten public offering and $9.2 million from government grant revenue. We have devoted substantially all of these funds to research and development and sales, general and administrative expenses. Since our inception, we have generated minimal revenues from the sale of the Verigene System, including consumables and related products, to our initial clinical customers, research laboratories and government agencies. We also incurred significant losses and, as of June 30, 2010, we had an accumulated deficit of approximately $261.6 million. While we are currently in the commercialization stage of operations, we have not yet achieved profitability and anticipate that we will continue to incur net losses for the foreseeable future.
The Companys material contractual obligations and commitments are as described in its Annual Report on Form 10-K for the year ended December 31, 2009 filed with the SEC on March 11, 2010. In addition, on July 9, 2010, the Company executed a worldwide non-exclusive license agreement (the Agreement) to utilize certain patented technology believed by the Company to be useful in the manufacture of certain of its current and future products. Under the terms of the Agreement, the Company will pay a license and technology transfer fee of $1,865,000, payable in four installments. The first installment of $165,000 was due upon the execution of the Agreement, and the remaining installments of $350,000, $600,000 and $750,000 are payable on July 9, 2011, 2012 and 2013, respectively. These fees represent full payment for use of the licensed patents during the term of the Agreement, which ends on the expiration date of the last patent issued and licensed under the Agreement.
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Nanosphere, Inc. has a market cap of $135 million; its shares were traded at around $4.75 with and P/S ratio of 61. NSPH is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Columbia Wanger of Columbia Wanger Asset Management, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Revenues were $0.5 million for the three month period ended June 30, 2010, as compared to $0.4 million for the three month period ended June 30, 2009. Product sales were $0.3 million for three month period ended June 30, 2010, as compared to $0.2 million for the three month period ended June 30, 2009. Both of the three month periods ended June 30, 2010 and 2009 also included $0.2 million of service revenue related primarily to the assay development contract with a major pharmaceutical company described earlier.Sales, general and administrative expenses increased from $3.7 million for the three month period ended June 30, 2009 to $9.1 million for the three month period ended June 30, 2010. The $5.4 million increase in sales, general and administrative expenses for the three months ended June 30, 2010 resulted from accrued legal settlement expenses of $3.5 million, a $1.5 million increase in litigation defense expenses and a $0.5 million increase in non-cash share-based compensation associated with options and restricted stock granted in the fourth quarter of 2009, partially offset by a decrease in clinical trial expenses associated with the FAST-TRAC cTnI marketing study.
Revenues were $1.3 million for the six month period ended June 30, 2010, as compared to $0.7 million for the six month period ended June 30, 2009. Product sales increased from $0.5 million for the six month period ended June 30, 2009 to $0.7 million for the same period in 2010. Service revenue also increased from $0.2 million for the six month period ended June 30, 2009 to $0.6 million for the same period in 2010.
Sales, general and administrative expenses increased from $6.8 million for the six month period ended June 30, 2009 to $13.2 million for the six month period ended June 30, 2010 due to a $3.5 million contingency reserve as well as a $1.5 increase in litigation defense expenses related to Eppendorf AG litigation, as previously discussed. In addition, non-cash share-based compensation increased $1.2 million due to options and restricted stock granted in the fourth quarter of 2009.
From our inception in December 1999 through December 31, 2009, we have received net proceeds of $103.9 million from the sale of convertible preferred stock and issuance of notes payable that were exchanged for convertible preferred stock, $102.2 million from our November 2007 initial public offering, $35.4 million from our October 2009 underwritten public offering and $9.2 million from government grant revenue. We have devoted substantially all of these funds to research and development and sales, general and administrative expenses. Since our inception, we have generated minimal revenues from the sale of the Verigene System, including consumables and related products, to our initial clinical customers, research laboratories and government agencies. We also incurred significant losses and, as of June 30, 2010, we had an accumulated deficit of approximately $261.6 million. While we are currently in the commercialization stage of operations, we have not yet achieved profitability and anticipate that we will continue to incur net losses for the foreseeable future.
The Companys material contractual obligations and commitments are as described in its Annual Report on Form 10-K for the year ended December 31, 2009 filed with the SEC on March 11, 2010. In addition, on July 9, 2010, the Company executed a worldwide non-exclusive license agreement (the Agreement) to utilize certain patented technology believed by the Company to be useful in the manufacture of certain of its current and future products. Under the terms of the Agreement, the Company will pay a license and technology transfer fee of $1,865,000, payable in four installments. The first installment of $165,000 was due upon the execution of the Agreement, and the remaining installments of $350,000, $600,000 and $750,000 are payable on July 9, 2011, 2012 and 2013, respectively. These fees represent full payment for use of the licensed patents during the term of the Agreement, which ends on the expiration date of the last patent issued and licensed under the Agreement.
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