Avanir Pharmaceuticals (AVNR, Financial) filed Quarterly Report for the period ended 2008-12-31.
AVANIR Pharmaceuticals is focused on developing acquiring and commercializing novel therapeutic products for the treatment of chronic diseases. AVANIR's products and product candidates address therapeutic markets that include the central nervous system cardiovascular disorders inflammation and infectious diseases. AVANIR currently markets FazaClo the only orally-disintegrating formulation of clozapine for the management of severely ill schizophrenic patients who fail to respond adequately to standard drug treatments for schizophrenia. FazaClo is also indicated for reducing the risk of suicidal behavior in patients with schizophrenia or schizoaffective disorder. AVANIR has an ongoing development program with Novartis International Pharmaceutical Ltd. for the treatment of inflammatory disease. The Company's first commercialized product Abreva is marketed in North America by GlaxoSmithKline Consumer Healthcare and is the leading over-the-counter product for the treatment of Avanir Pharmaceuticals has a market cap of $43.81 million; its shares were traded at around $0.5 with and P/S ratio of 6.26.
Revenues from research services and other decreased by $309,000 to $1.8 million for the first quarter of fiscal 2009 compared to $2.1 million in the first quarter of fiscal 2008. The decrease in revenues from research services and other is attributed to a decrease of $168,000 in government grant revenue related to our anthrax antibody program which ended in June 30, 2008 as well as a $90,000 decrease in royalties related to deferred revenue from our license agreement with GSK.
Total compensation expense for our share-based payments in the three month period ended December 31, 2008 and the same period in 2007 was approximately $386,000 and $444,000, respectively. General and administrative expense in the three month periods ended December 31, 2008 and 2007 include share-based compensation expense of approximately $306,000 and $298,000, respectively. Research and development expense in the three month periods ended December 31, 2008 and 2007 include share-based compensation expense of approximately $80,000 and $146,000, respectively. As of December 31, 2008, $5.3 million of total unrecognized compensation costs related to nonvested options and awards is expected to be recognized over a weighted average period of 2.9 years. See Note 13, Employee Equity Incentive Plans in the Notes to Condensed Consolidated Financial Statements (Unaudited) for further discussion.
Net loss was $5.2 million or $0.07 per share in the three month period ended December 31, 2008 compared to a net loss of $5.5 million or $0.13 per share for the three month period ended December 31, 2007.
Financing activities. Net cash used in financing activities was $22,000 in the first three months of fiscal 2009 compared to net cash used in financing activities of $110,000 in the first three months of fiscal 2008. The decrease in net cash used in financing activities is primarily related to a decrease of $70,000 in repayments of notes payable.
In April 2008, we closed a registered securities offering raising $40 million in gross proceeds ($38 million net of offering costs) from a select group of institutional investors led by ProQuest Investments and joined by Clarus Ventures, Vivo Ventures, and OrbiMed Advisors. In connection with the offering, we issued approximately 35 million shares of common stock were issued at a price of $1.14 per share. We also issued warrants to purchase up to approximately 12.2 million shares of common stock at a price of $1.43 per share. These warrants have a 5 year exercise term. The proceeds from this offering are expected to provide us with adequate capital to allow continuing operations through the date by which we expect to receive an approval decision from the FDA for Zenvia for the PBA indication.
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AVANIR Pharmaceuticals is focused on developing acquiring and commercializing novel therapeutic products for the treatment of chronic diseases. AVANIR's products and product candidates address therapeutic markets that include the central nervous system cardiovascular disorders inflammation and infectious diseases. AVANIR currently markets FazaClo the only orally-disintegrating formulation of clozapine for the management of severely ill schizophrenic patients who fail to respond adequately to standard drug treatments for schizophrenia. FazaClo is also indicated for reducing the risk of suicidal behavior in patients with schizophrenia or schizoaffective disorder. AVANIR has an ongoing development program with Novartis International Pharmaceutical Ltd. for the treatment of inflammatory disease. The Company's first commercialized product Abreva is marketed in North America by GlaxoSmithKline Consumer Healthcare and is the leading over-the-counter product for the treatment of Avanir Pharmaceuticals has a market cap of $43.81 million; its shares were traded at around $0.5 with and P/S ratio of 6.26.
Highlight of Business Operations:
$999,000 which was earned pursuant to the GSK license agreement as well as the recognition of $755,000 of deferred revenue. In the first quarter of 2008, revenues from research services and other was comprised of royalty revenue of $934,000 related to the GSK license agreement as well as $1.2 million of revenue from other sources, including the recognition of $896,000 of deferred revenue and $168,000 in government grant revenue.Revenues from research services and other decreased by $309,000 to $1.8 million for the first quarter of fiscal 2009 compared to $2.1 million in the first quarter of fiscal 2008. The decrease in revenues from research services and other is attributed to a decrease of $168,000 in government grant revenue related to our anthrax antibody program which ended in June 30, 2008 as well as a $90,000 decrease in royalties related to deferred revenue from our license agreement with GSK.
Total compensation expense for our share-based payments in the three month period ended December 31, 2008 and the same period in 2007 was approximately $386,000 and $444,000, respectively. General and administrative expense in the three month periods ended December 31, 2008 and 2007 include share-based compensation expense of approximately $306,000 and $298,000, respectively. Research and development expense in the three month periods ended December 31, 2008 and 2007 include share-based compensation expense of approximately $80,000 and $146,000, respectively. As of December 31, 2008, $5.3 million of total unrecognized compensation costs related to nonvested options and awards is expected to be recognized over a weighted average period of 2.9 years. See Note 13, Employee Equity Incentive Plans in the Notes to Condensed Consolidated Financial Statements (Unaudited) for further discussion.
Net loss was $5.2 million or $0.07 per share in the three month period ended December 31, 2008 compared to a net loss of $5.5 million or $0.13 per share for the three month period ended December 31, 2007.
Financing activities. Net cash used in financing activities was $22,000 in the first three months of fiscal 2009 compared to net cash used in financing activities of $110,000 in the first three months of fiscal 2008. The decrease in net cash used in financing activities is primarily related to a decrease of $70,000 in repayments of notes payable.
In April 2008, we closed a registered securities offering raising $40 million in gross proceeds ($38 million net of offering costs) from a select group of institutional investors led by ProQuest Investments and joined by Clarus Ventures, Vivo Ventures, and OrbiMed Advisors. In connection with the offering, we issued approximately 35 million shares of common stock were issued at a price of $1.14 per share. We also issued warrants to purchase up to approximately 12.2 million shares of common stock at a price of $1.43 per share. These warrants have a 5 year exercise term. The proceeds from this offering are expected to provide us with adequate capital to allow continuing operations through the date by which we expect to receive an approval decision from the FDA for Zenvia for the PBA indication.
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