NeurogesX Inc. (NGSX, Financial) filed Quarterly Report for the period ended 2009-06-30.
NEUROGESX INC. is a biopharmaceutical company focused on developing and commercializing novel pain management therapies. Its initial focus is on chronic peripheral neuropathic pain including postherpetic neuralgia painful HIV-distal sensory polyneuropathy (HIV-DSP) and painful diabetic neuropathy. NeurogesX\' late stage product portfolio is led by its product candidate NGX-4010 a dermal patch designed to manage pain associated with peripheral neuropathic pain conditions that the Company believes offers significant advantages over other pain therapies. NeurogesX Inc. has a market cap of $127.9 million; its shares were traded at around $7.28 .
Since our inception, Qutenza has accounted for over 90% of our external research and development expenses. Specifically, in the three months ended June 30, 2009 and 2008, our external research and development costs totaled $0.9 million and $1.7 million, respectively, and of these amounts 99% and 89%, respectively, were incurred in programs related to Qutenza. In the six months ended June 30, 2009 and 2008, our external research and development costs totaled $1.4 million and $5.1 million, respectively, and of these amounts 98% and 91%, respectively, were incurred in programs related to Qutenza. We commence tracking the separate, external costs of a project when we determine that a project has a reasonable chance of entering clinical development. We use our internal research and development resources across several projects and many resources are not attributable to specific projects. Accordingly, we do not account for our internal research and development costs on a project basis. However, over time, we believe that our internal costs are expended on our development projects generally in proportion to our external development costs for such project relative to total external development costs.
General and Administrative Expenses. General and administrative expenses decreased approximately $0.3 million, or 9%, to $2.6 million for the three months ended June 30, 2009 from $2.9 million for the same period in 2008. The year over year change was due to a $0.4 million decrease in certain pre-commercialization activities including participation in key medical conferences, marketing materials development and medical education, as well as a $0.1 million reduction in marketing employee related expenses. These decreases were partially offset by a $0.2 million increase in professional fees, including legal and accounting fees.
General and Administrative Expenses. General and administrative expenses decreased approximately $0.6 million, or 10%, to $4.8 million for the six months ended June 30, 2009 from $5.4 million for the same period in 2008. The year over year change was due to a $0.6 million decrease in certain pre-commercialization activities including marketing materials development, participation in key medical conferences and medical education, as well as a $0.1 million reduction in marketing employee related expenses. These decreases were partially offset by a $0.2 million increase in professional fees, including legal and accounting fees.
Since our inception through June 30, 2009, we have financed our operations primarily through private placements and a public offering of our equity securities and, to a lesser extent, through debt facilities. Through June 30, 2009, we have received approximately $158.7 million from the sale of our equity securities, net of issuance costs. On May 7, 2007, we completed an initial public offering of our common stock which resulted in net cash proceeds, after deducting total expenses including underwriting discounts and commissions and other-offering related expenses, of approximately $38.1 million. On December 28, 2007 we completed the first closing of a private placement of our common stock and warrants resulting in net cash proceeds of $21.5 million and on January 3, 2008, we completed the second and final closing of this private placement of our common stock and warrants resulting in additional net cash proceeds of $2.3 million.
As of June 30, 2009, we had approximately $13.4 million in cash, cash equivalents and short-term investments. We also had working capital, adjusted to exclude the current portion of non-cash deferred revenue of approximately $4.3 million, of $58.7 million. Our working capital increased significantly during the second quarter as a result of the recording of a receivable from Astellas of approximately $48.8 million in connection with the execution of the Astellas Agreement on June 19, 2009. Subsequent to June 30, 2009, the full receivable balance of approximately $48.8 million was collected from Astellas in July 2009 and becomes non-refundable upon our transfer of our MA to Astellas, a process we expect to complete by the end of 2009.
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NEUROGESX INC. is a biopharmaceutical company focused on developing and commercializing novel pain management therapies. Its initial focus is on chronic peripheral neuropathic pain including postherpetic neuralgia painful HIV-distal sensory polyneuropathy (HIV-DSP) and painful diabetic neuropathy. NeurogesX\' late stage product portfolio is led by its product candidate NGX-4010 a dermal patch designed to manage pain associated with peripheral neuropathic pain conditions that the Company believes offers significant advantages over other pain therapies. NeurogesX Inc. has a market cap of $127.9 million; its shares were traded at around $7.28 .
Highlight of Business Operations:
We are a development stage company. To date, we have not generated any revenues and have funded our operations primarily by selling equity securities, establishing debt facilities and through a collaboration agreement with Astellas. We have incurred significant losses since our inception. As of June 30, 2009, we had a deficit accumulated during the development stage of approximately $200.2 million, of which approximately $38.9 million represents non-cash charges for the accretion of redeemable convertible preferred stock. We had cash, cash equivalents and short-term investments totaling $13.4 million at June 30, 2009 and during the six months ended 2009, we used cash of $9.2 million in operating activities and approximately $1.8 million in repayment of our notes payable. We expect to continue to incur annual operating losses over the next several years and those losses may increase as we continue our efforts to gain marketing approval, prepare for potential commercialization and, if approved, commercialize Qutenza in the United States. Additionally, we expect to resume development of NGX-1998 and potentially our other product candidates. With respect to our notes payable, at June 30, 2009, the outstanding balance was approximately $1.3 million. This balance is scheduled to be fully repaid by January 2010.Since our inception, Qutenza has accounted for over 90% of our external research and development expenses. Specifically, in the three months ended June 30, 2009 and 2008, our external research and development costs totaled $0.9 million and $1.7 million, respectively, and of these amounts 99% and 89%, respectively, were incurred in programs related to Qutenza. In the six months ended June 30, 2009 and 2008, our external research and development costs totaled $1.4 million and $5.1 million, respectively, and of these amounts 98% and 91%, respectively, were incurred in programs related to Qutenza. We commence tracking the separate, external costs of a project when we determine that a project has a reasonable chance of entering clinical development. We use our internal research and development resources across several projects and many resources are not attributable to specific projects. Accordingly, we do not account for our internal research and development costs on a project basis. However, over time, we believe that our internal costs are expended on our development projects generally in proportion to our external development costs for such project relative to total external development costs.
General and Administrative Expenses. General and administrative expenses decreased approximately $0.3 million, or 9%, to $2.6 million for the three months ended June 30, 2009 from $2.9 million for the same period in 2008. The year over year change was due to a $0.4 million decrease in certain pre-commercialization activities including participation in key medical conferences, marketing materials development and medical education, as well as a $0.1 million reduction in marketing employee related expenses. These decreases were partially offset by a $0.2 million increase in professional fees, including legal and accounting fees.
General and Administrative Expenses. General and administrative expenses decreased approximately $0.6 million, or 10%, to $4.8 million for the six months ended June 30, 2009 from $5.4 million for the same period in 2008. The year over year change was due to a $0.6 million decrease in certain pre-commercialization activities including marketing materials development, participation in key medical conferences and medical education, as well as a $0.1 million reduction in marketing employee related expenses. These decreases were partially offset by a $0.2 million increase in professional fees, including legal and accounting fees.
Since our inception through June 30, 2009, we have financed our operations primarily through private placements and a public offering of our equity securities and, to a lesser extent, through debt facilities. Through June 30, 2009, we have received approximately $158.7 million from the sale of our equity securities, net of issuance costs. On May 7, 2007, we completed an initial public offering of our common stock which resulted in net cash proceeds, after deducting total expenses including underwriting discounts and commissions and other-offering related expenses, of approximately $38.1 million. On December 28, 2007 we completed the first closing of a private placement of our common stock and warrants resulting in net cash proceeds of $21.5 million and on January 3, 2008, we completed the second and final closing of this private placement of our common stock and warrants resulting in additional net cash proceeds of $2.3 million.
As of June 30, 2009, we had approximately $13.4 million in cash, cash equivalents and short-term investments. We also had working capital, adjusted to exclude the current portion of non-cash deferred revenue of approximately $4.3 million, of $58.7 million. Our working capital increased significantly during the second quarter as a result of the recording of a receivable from Astellas of approximately $48.8 million in connection with the execution of the Astellas Agreement on June 19, 2009. Subsequent to June 30, 2009, the full receivable balance of approximately $48.8 million was collected from Astellas in July 2009 and becomes non-refundable upon our transfer of our MA to Astellas, a process we expect to complete by the end of 2009.
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