ARCA BIOPHARMA, INC. (ABIO, Financial) filed Quarterly Report for the period ended 2010-06-30.
Arca Biopharma, Inc. has a market cap of $32.9 million; its shares were traded at around $3.77 with and P/S ratio of 0.7. ABIO is in the portfolios of Jim Simons of Renaissance Technologies LLC.
$3.2 million, as compared to $9.2 million in the corresponding period of 2009, a decrease of $6.0 million. The decrease in these expenses is comprised primarily of the following:
In the second quarter of 2009, ARCA implemented a restructuring plan under which it terminated 44 employees from its research and development and selling, general and administrative functions. ARCA implemented the restructuring plan in connection with its strategy to seek strategic alternatives for commercializing Gencaro, rather than establish its own internal sales, marketing and distribution capabilities and to lower operating expenses to preserve our capital resources. As result of the restructuring plan implemented, ARCA recorded a restructuring charge in the three and six months ended June 30, 2009 of approximately $1.2 million for personnel-related termination costs, of which $795,000 related to severance amounts paid in cash and $387,000 related to the acceleration of vesting on outstanding stock options.
Interest and other income was $1,000 in the three months ended June 30, 2010 and $2,000 in the six months ended June 30, 2010, as compared to $103,000 in the three months ended June 30, 2009 and $204,000 in the six months ended June 30, 2009. The decreases in interest and other income in the 2010 periods are due to decreases in our average cash, cash equivalents and marketable securities balances and investment yields. We expect interest income to be nominal in 2010 due to low investment yields and declining cash, cash equivalent, and investment balances.
Interest and other expense was $2,000 in the three months ended June 30, 2010 and $4,000 in the six months ended June 30, 2010, as compared to $49,000 in the three months ended June 30, 2009 and $113,000 in the six months ended June 30, 2009. The decreases in interest and other expense in the 2010 periods are due to our conversion of our convertible notes payable and repayment of our bank note. The convertible notes were converted into common stock upon closing of the Merger on January 27, 2009. The outstanding indebtedness under the bank note was repaid in full in July 2009. Based on our current capital structure, interest expense for 2010 is expected to be minimal.
On December 8, 2009, we entered into an equity distribution agreement, or the Agreement, with Wedbush Securities Inc., or the Agent, under which we may, from time to time, offer and sell our common stock through the Agent. On April 30, 2010, we amended the Agreement to permit us to sell up to an aggregate of $20 million in shares, which have been registered on a registration statement on Form S-3 (File No. 333-148288). Additional sales of our common stock through the Agent, if any, will be made by means of ordinary brokers transactions on the Nasdaq Global Market or otherwise at market prices prevailing at the time of sale, in block transactions, or as otherwise agreed upon by us and the Agent. The Agent will use commercially reasonable efforts to sell our common stock from time to time, based upon instructions from us, including any price, time or size limits or other customary parameters or conditions we may impose. We will pay the Agent a commission, or allow a discount, as the case may be, in each case equal to 4.5% of the gross sales proceeds of any common stock sold through the Agent, acting as an agent, under the Agreement. We may also sell shares of common stock to the Agent, as principal for its own account, at a price to be agreed upon at the time of sale. In the three months ended June 30, 2010, we sold 89,600 shares of common stock under this Agreement and realized $334,000 of proceeds, net of $16,000 of offering costs. In the six months ended June 30, 2010, we sold 1,164,600 shares of common stock under this Agreement and realized $7.2 million of proceeds, net of $338,000 of offering costs. Although, after giving effect to the Amendment, we have up to $12.5 million available under the Agreement, SEC and Nasdaq regulations may allow us to sell only a portion of the full amount in any particular twelve month period. As of August 10, 2010, we could sell up to $1.8 million of common stock under the Agreement and this amount may be further reduced in the future.
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Arca Biopharma, Inc. has a market cap of $32.9 million; its shares were traded at around $3.77 with and P/S ratio of 0.7. ABIO is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Research and development, or R&D, expense was $700,000 for the three months ended June 30, 2010 as compared to $3.5 million for the corresponding period in 2009, a decrease of $2.8 million. R&D expense was $1.5 million for the six months ended June 30, 2010 as compared to $8.1 million for the corresponding period in 2009, a decrease of $6.6 million. Clinical, regulatory, and manufacturing process expenses decreased by $1.8 million for the three months ended June 30, 2010 and $4.6 million for the six months ended June 30, 2010 compared to the corresponding periods in 2009 as a result of our change in strategy and restructuring plan in the second quarter of 2009. Additionally, R&D expense decreased $1.0 million for the three months ended June 30, 2010 and $2.0 million for the six months ended June 30, 2010 as a result of the discontinuation of clinical development projects, collaborative development arrangements and personnel costs assumed in the merger with Nuvelo.$3.2 million, as compared to $9.2 million in the corresponding period of 2009, a decrease of $6.0 million. The decrease in these expenses is comprised primarily of the following:
In the second quarter of 2009, ARCA implemented a restructuring plan under which it terminated 44 employees from its research and development and selling, general and administrative functions. ARCA implemented the restructuring plan in connection with its strategy to seek strategic alternatives for commercializing Gencaro, rather than establish its own internal sales, marketing and distribution capabilities and to lower operating expenses to preserve our capital resources. As result of the restructuring plan implemented, ARCA recorded a restructuring charge in the three and six months ended June 30, 2009 of approximately $1.2 million for personnel-related termination costs, of which $795,000 related to severance amounts paid in cash and $387,000 related to the acceleration of vesting on outstanding stock options.
Interest and other income was $1,000 in the three months ended June 30, 2010 and $2,000 in the six months ended June 30, 2010, as compared to $103,000 in the three months ended June 30, 2009 and $204,000 in the six months ended June 30, 2009. The decreases in interest and other income in the 2010 periods are due to decreases in our average cash, cash equivalents and marketable securities balances and investment yields. We expect interest income to be nominal in 2010 due to low investment yields and declining cash, cash equivalent, and investment balances.
Interest and other expense was $2,000 in the three months ended June 30, 2010 and $4,000 in the six months ended June 30, 2010, as compared to $49,000 in the three months ended June 30, 2009 and $113,000 in the six months ended June 30, 2009. The decreases in interest and other expense in the 2010 periods are due to our conversion of our convertible notes payable and repayment of our bank note. The convertible notes were converted into common stock upon closing of the Merger on January 27, 2009. The outstanding indebtedness under the bank note was repaid in full in July 2009. Based on our current capital structure, interest expense for 2010 is expected to be minimal.
On December 8, 2009, we entered into an equity distribution agreement, or the Agreement, with Wedbush Securities Inc., or the Agent, under which we may, from time to time, offer and sell our common stock through the Agent. On April 30, 2010, we amended the Agreement to permit us to sell up to an aggregate of $20 million in shares, which have been registered on a registration statement on Form S-3 (File No. 333-148288). Additional sales of our common stock through the Agent, if any, will be made by means of ordinary brokers transactions on the Nasdaq Global Market or otherwise at market prices prevailing at the time of sale, in block transactions, or as otherwise agreed upon by us and the Agent. The Agent will use commercially reasonable efforts to sell our common stock from time to time, based upon instructions from us, including any price, time or size limits or other customary parameters or conditions we may impose. We will pay the Agent a commission, or allow a discount, as the case may be, in each case equal to 4.5% of the gross sales proceeds of any common stock sold through the Agent, acting as an agent, under the Agreement. We may also sell shares of common stock to the Agent, as principal for its own account, at a price to be agreed upon at the time of sale. In the three months ended June 30, 2010, we sold 89,600 shares of common stock under this Agreement and realized $334,000 of proceeds, net of $16,000 of offering costs. In the six months ended June 30, 2010, we sold 1,164,600 shares of common stock under this Agreement and realized $7.2 million of proceeds, net of $338,000 of offering costs. Although, after giving effect to the Amendment, we have up to $12.5 million available under the Agreement, SEC and Nasdaq regulations may allow us to sell only a portion of the full amount in any particular twelve month period. As of August 10, 2010, we could sell up to $1.8 million of common stock under the Agreement and this amount may be further reduced in the future.
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