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Repros Therapeutics Inc. Reports Operating Results (10-Q)

November 10, 2010 | About:
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10qk

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Repros Therapeutics Inc. (RPRX) filed Quarterly Report for the period ended 2010-09-30.

Repros Therapeutics Inc. has a market cap of $13.3 million; its shares were traded at around $0.3725 with and P/S ratio of 24.2.
This is the annual revenues and earnings per share of RPRX over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of RPRX.


Highlight of Business Operations:

As of September 30, 2010, we had accumulated losses of $178.1 million, approximately $4.2 million in cash and cash equivalents, and our accounts payable and accrued expenses were approximately $1.4 million. The amount of cash on hand is not sufficient to fund each of the clinical trials currently planned for our two drug candidates, Proellex® and Androxal®. Based on these planned clinical trials, we will need to raise additional capital no later than the first quarter of 2011. We continue to explore potential additional financing alternatives that would provide sufficient funds to enable us to continue to develop our two product candidates through completion of the outlined clinical trials; however, there can be no assurance that we will be successful in raising any such additional funds on a timely basis or at all. Significant additional capital will be required for us to complete development of either of our product candidates. The foregoing and other matters raise substantial doubt about our ability to continue as a going concern.

In addition, we have not received regulatory approval for any of our product candidates, have not successfully earned any significant commercial revenues from any of our product candidates and may never launch either of our product candidates. If we do not successfully commercialize any of our product candidates, we will be unable to achieve our business objectives. In addition, the reported results of our clinical trials completed to date may not be indicative of results that will be achieved in later-stage clinical trials involving larger and more diverse patient populations. As of September 30, 2010, we had accumulated losses of $178.1 million, approximately $4.2 million in cash and cash equivalents, and our accounts payable and accrued expenses were approximately $1.4 million. The amount of cash on hand is not sufficient to fund each of the clinical trials currently planned or in process for our two drug candidates, Proellex® and Androxal®. Based on these current or planned clinical trials, we will need to raise additional capital no later than the first quarter of 2011. The foregoing and other matters raise substantial doubt about our ability to continue as a going concern and we expect to continue to incur significant losses over the next several years, and we may never become profitable. Our financial statements do not include any adjustments that might result from the outcome of these uncertainties.

We capitalize the cost associated with building our patent library for Androxal®. As of September 30, 2010, other assets consist of capitalized patent and patent application costs in the amount of $1.1 million. Patent costs, which include legal and application costs related to the patent portfolio, are being amortized over 20 years, or the lesser of the legal or the estimated economic life of the patent. Amortization of patent costs was $21,000 and $13,000 for the three month periods ended September, 30, 2010 and 2009, respectively, and was $50,000 and $39,000 for the nine month periods ended September 30, 2010 and 2009, respectively. The entire $1.1 million in capitalized patents and patent applications relates to Androxal®.

Total revenues and other income increased to $85,000 for the three month period ended September 30, 2010 as compared to zero for the same period in the prior and increased to $138,000 for the nine month period ended September 30, 2010 as compared to $4,000 for the same period in the prior year. The increase for the three and nine month periods ended September 30, 2010 was primarily due to an increase of $85,000 and $138,000, respectively, in non-cash other income related to debt relief from settlements with certain vendors in the second and third quarters of 2010.

Research and development, or R&D, expenses include contracted services relating to our clinical product development activities which include preclinical studies, clinical trials, regulatory affairs and bulk manufacturing scale-up activities and bulk active ingredient purchases for preclinical and clinical trials primarily relating to our two products in clinical development, which are Androxal® and Proellex®. Research and development expenses also include internal operating expenses relating to our general research and development activities. R&D expenses decreased 91% or approximately $7.5 million to $736,000 for the three month period ended September 30, 2010 as compared to $8.3 million for the same period in the prior year. Our primary R&D expenses for the three month periods ended September 30, 2010 and 2009 are shown in the following table (in thousands):

Read the The complete Report

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