BioMimetic Therapeutics Inc. Reports Operating Results (10-Q)
Biomimetic Therapeutics Inc. has a market cap of $214.1 million; its shares were traded at around $9.68 with and P/S ratio of 136.3.
Highlight of Business Operations:For the six months ended June 30, 2010, we had a net loss of $16.2 million, compared to a net loss of $14.3 million for the same period in 2009. Our revenues remain limited, which at $0.7 million and $0.8 million for the six months ended June 30, 2010 and 2009, respectively, consist only of royalty income and sublicense fee income. Our largest expenditures related to our research and development activities, which were $8.1 million for the six months ended June 30, 2010, compared to $10.3 million for the same period in 2009, and are discussed in further detail in “Financial Overview.” In view of our limited revenue at this time and the current economic downturn, we continue to closely monitor our cash balance and manage expenses. According to the National Bureau of Economic Research, the U.S. economy entered into a recession in December 2007. The U.S. Department of Commerce has reported economic growth in the last four quarters. However, the rate of growth has slowed. The continuing volatile business and economic environment, as well as the ensuing market instability and uncertainty, may continue to impact our general business strategy, which may be adversely affected if the current economic conditions do not continue to improve. For example, the economy may impact the demand for elective medical procedures that we are targeting with our product candidates, or may impact the pricing that we may set for our products, if approved. Accordingly, the impact of the economy on commercial opportunities, such as our anticipated product launch in the United States for our lead product candidate, remains uncertain.
In July 2010, at the AOFAS meeting, we announced the results of a recently completed study supported by us and led by Dr. Nicholas Abidi, an orthopedic surgeon at Santa Cruz Orthopaedic Institute and an investigator in our Augment clinical trial. The study, which sought to evaluate and quantify the direct medical costs of harvesting autograft in foot and ankle fusion procedures, analyzed billing and cost data for medical resources directly attributable to harvesting autograft from 10 hospitals and orthopedic centers located across the United States. Average direct medical costs ranged from $1,100 to $2,400 per patient, depending upon the location of the harvest site and individual hospital charge/cost structure. These conclusions only include conservative estimates relating to the incremental costs resulting from complications associated with the harvest procedure. Further, it is impossible to quantify the cost of the pain and additional risk experienced by patients having autograft harvested, or the unique difficulties of harvesting in compromised patients with conditions such as diabetes, obesity, or rheumatoid arthritis.
In July 2010, we sold 5,642,280 shares of common stock at a public offering price of $8.50 per share, resulting in net proceeds of approximately $45.0 million after deducting underwriting discounts, commissions and estimated expenses. Of the shares sold, 642,280 shares were sold in connection with the underwriters exercise, in part, of an over-allotment option. Novo A/S, one of our affiliates, participated in the offering by purchasing 1,000,000 shares at the public offering price, under the same terms and conditions and at the same time as the general public.
The remaining proceeds of these activities are reflected in the balance of cash and investments totaling $60.7 million as of June 30, 2010, which includes $9.0 million in cash and cash equivalents and $51.7 million in short-term and long-term investments in U.S. government sponsored enterprise (“GSE”) securities and U.S. Treasury Notes that are classified as available-for-sale.
Net loss for the three months ended June 30, 2010 was $7.7 million, or $0.35 per diluted share, compared to net loss of $6.3 million, or $0.32 per diluted share, for the same period in 2009.
Research and development expenses for the three months ended June 30, 2010 were $3.9 million, compared to $5.2 million for the same period in 2009. The $1.3 million decrease resulted primarily from:
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