A.P. Pharma Inc. (APPA) filed Quarterly Report for the period ended 2010-03-31.
A.p. Pharma Inc. has a market cap of $37.06 million; its shares were traded at around $0.94 with and P/S ratio of 29.39. APPA is in the portfolios of Jim Simons of Renaissance Technologies LLC, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:Contract revenue, which is derived from work performed under collaborative research and development arrangements, was $241,000 and $8,000 for the three months ended March 31, 2010 and 2009, respectively. The majority of our contract revenue for the three months ended March 31, 2010 was derived from an agreement with Merial we entered into in September 2009 for a long-acting pain management product for companion animals.
Research and development expense for the three months ended March 31, 2010 increased by $281,000 from $2.05 million for the three months ended March 31, 2009 to $2.3 million primarily due to increased development, manufacturing and project-related expenses related to our NDA submission to the FDA, partially offset by the suspension of other research and development projects to conserve resources, as well as headcount reductions in May 2009. Research and development expense is expected to increase in 2010 as a result of expenditures associated with our response to the FDAs Complete Response Letter in order to obtain FDA approval, as well as pre-commercialization activities.
General and administrative expense decreased for the three months ended March 31, 2010 by $146,000 from $927,000 for the three months ended March 31, 2009 to $781,000, primarily as a result of cost containment measures associated with our headcount reductions in May 2009.
In October 2009, we sold 7,954,543 shares of our common stock in a Private Placement at $0.88 per share and warrants to purchase 3,977,270 shares of our common stock, exercisable through January 7, 2015, at $0.88 per share. The purchasers paid an additional $0.125 per underlying share for the warrants. Additionally the purchasers had a right to purchase up to an additional 5,165,286 shares at $0.97 per share prior to May 14, 2010 and paid $0.125 per underlying share for the right to purchase such additional shares. No purchasers exercised their right to purchase up to an additional 5,165,286 shares of our common stock at $0.97 per share under the Private Placement and the right expired unexercised on May 14, 2010. Total proceeds were approximately $7.9 million, after deducting costs associated with the issuance. We are required to prepare and file Form S-3 registration statements, as permissible under SEC rules and regulations, with the SEC for the purpose of registering for resale the securities sold in this transaction. On November 6, 2009, we filed a Form S-3 covering 7,532,617 shares of our common stock sold in a private placement, which was declared effective by the SEC on November 17, 2009.
Cash and cash equivalents decreased by $31,000 at March 31, 2010 from December 31, 2009 due primarily to our net loss for the three months ended March 31, 2010, offset by the receipt of the $2.5 million milestone from an affiliate of the Paul Royalty Fund.
Net cash used in continuing operating activities for the three months ended March 31, 2010 was $61,000, compared to net cash used of $3.1 million for the three months ended March 31, 2009. The decrease in net cash used by continuing operating activities from 2009 to 2010 was primarily due to the significantly decreased loss for the three months ended March 31, 2010, as compared to the same period in 2009, as well as a decrease in accrued expenses in 2010 related to the completion of clinical trials.
Read the The complete Report