Anthera Pharmaceuticals Inc. (ANTH, Financial) filed Quarterly Report for the period ended 2010-09-30.
Anthera Pharmaceuticals Inc. has a market cap of $124.1 million; its shares were traded at around $5.56 . ANTH is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Steven Cohen of SAC Capital Advisors.
On February 26, 2010, our Registration Statement on Form S-1 was declared effective by the SEC for our IPO, pursuant to which we sold 6,000,000 shares of our common stock at a public offering price of $7.00 per share. We received net proceeds of approximately $37.1 million from this transaction. Concurrent with the closing of the IPO, we received an aggregate of $17.1 million from the issuance of 2,598,780 shares of our common stock to certain of our investors pursuant to a common stock purchase agreement. On April 6, 2010, pursuant to the terms and conditions of the underwriting agreement, the underwriters of our IPO exercised their over-allotment option and purchased 604,492 shares of common stock at our public offering price of $7.00 per share, less the underwriting discount and commissions, resulting in gross proceeds of approximately $4.2 million.
Effective January 1, 2006, we adopted the provisions of FASB ASC 718, Compensation Stock Compensation, using the modified prospective method. Compensation costs related to all equity instruments granted after January 1, 2006 are recognized at the grant-date fair value of the awards. Additionally, we are required to include an estimate of the number of awards that will be forfeited in calculating compensation costs, which are recognized over the requisite service period of the awards on a straight-line basis. We estimate the fair value of our share-based payment awards on the date of grant using an option-pricing model. We recognized employee stock-based compensation expense of $74,861 in 2007, $143,406 in 2008, $253,964 in 2009 and $344,467 for the nine months ended September 30, 2010, respectively. As of September 30, 2010, we had $2.2 million in total unrecognized compensation cost related to non-vested employee stock-based compensation arrangements. The intrinsic value of all outstanding vested and non-vested stock-based compensation arrangements, based on the closing price of $4.19 per share, is $3.9 million, based on 1,307,066 shares of outstanding options and 333,000 shares of unvested restricted stock units at September 30, 2010.
Net cash used in operating activities was approximately $18.6 million. The net loss is higher than cash used in operating activities by $8.8 million. The primary drivers for the difference are adjustments for non-cash charges such as stock-based compensation of approximately $352,866, amortization of note discount and debt issuance cost of approximately $769,000, issuance of $3.5 million worth of common stock in lieu of cash milestone payments due to Eli Lilly and Shionogi & Co., Ltd., the conversion of approximately $300,000 of accrued interest into shares of common stock upon conversion of certain convertible promissory notes, mark to market adjustments relating to warrant and derivative liability of $3.8 million, and increase in operating assets and liabilities of approximately $195,000.
Net cash provided by financing activities was approximately $87.7 million and consisted of proceeds of $61.2 million received from the issuance of common stock at our IPO, the exercise of the overallotment option by our underwriters in connection with our IPO, the release of funds held in an escrow account concurrent with the closing of our IPO, and proceeds of $29.6 million received from the issuance of common stock and warrants in connection with the private placement offering, offset by approximately $2.9 million of issuance cost paid during the period.
Net cash used in operating activities was approximately $10.3 million. The net loss is higher than cash used in operating activities by $0.4 million The primary drivers for the difference are adjustments for non-cash charges such as depreciation and amortization of approximately $15,000, stock-based compensation of $206,000 due to increased headcount and corresponding equity grants made to new and existing employees, and increase in current liabilities of approximately $613,000 due to increased expense relating to our Phase 2 clinical study activity and a decrease in license fee payable by $500,000, partially offset by decrease in current assets of approximately $30,000.
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Anthera Pharmaceuticals Inc. has a market cap of $124.1 million; its shares were traded at around $5.56 . ANTH is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
We have generated significant losses since inception. As of September 30, 2010, we had an accumulated deficit of approximately $92.6 million. We recognized net losses of $8.3 million and $27.4 million for the three and nine months ended September 30, 2010, compared to the same period in 2009 when we recognized net losses of $3.6 million and $10.7 million, respectively. These losses have resulted primarily from expense incurred in connection with research and development activities, consisting primarily of clinical trials, preclinical studies and manufacturing services associated with our current production candidates. We expect our net losses to increase as we continue to advance our clinical trials, expand our research and development efforts, and add personnel for our anticipated growth.On February 26, 2010, our Registration Statement on Form S-1 was declared effective by the SEC for our IPO, pursuant to which we sold 6,000,000 shares of our common stock at a public offering price of $7.00 per share. We received net proceeds of approximately $37.1 million from this transaction. Concurrent with the closing of the IPO, we received an aggregate of $17.1 million from the issuance of 2,598,780 shares of our common stock to certain of our investors pursuant to a common stock purchase agreement. On April 6, 2010, pursuant to the terms and conditions of the underwriting agreement, the underwriters of our IPO exercised their over-allotment option and purchased 604,492 shares of common stock at our public offering price of $7.00 per share, less the underwriting discount and commissions, resulting in gross proceeds of approximately $4.2 million.
Effective January 1, 2006, we adopted the provisions of FASB ASC 718, Compensation Stock Compensation, using the modified prospective method. Compensation costs related to all equity instruments granted after January 1, 2006 are recognized at the grant-date fair value of the awards. Additionally, we are required to include an estimate of the number of awards that will be forfeited in calculating compensation costs, which are recognized over the requisite service period of the awards on a straight-line basis. We estimate the fair value of our share-based payment awards on the date of grant using an option-pricing model. We recognized employee stock-based compensation expense of $74,861 in 2007, $143,406 in 2008, $253,964 in 2009 and $344,467 for the nine months ended September 30, 2010, respectively. As of September 30, 2010, we had $2.2 million in total unrecognized compensation cost related to non-vested employee stock-based compensation arrangements. The intrinsic value of all outstanding vested and non-vested stock-based compensation arrangements, based on the closing price of $4.19 per share, is $3.9 million, based on 1,307,066 shares of outstanding options and 333,000 shares of unvested restricted stock units at September 30, 2010.
Net cash used in operating activities was approximately $18.6 million. The net loss is higher than cash used in operating activities by $8.8 million. The primary drivers for the difference are adjustments for non-cash charges such as stock-based compensation of approximately $352,866, amortization of note discount and debt issuance cost of approximately $769,000, issuance of $3.5 million worth of common stock in lieu of cash milestone payments due to Eli Lilly and Shionogi & Co., Ltd., the conversion of approximately $300,000 of accrued interest into shares of common stock upon conversion of certain convertible promissory notes, mark to market adjustments relating to warrant and derivative liability of $3.8 million, and increase in operating assets and liabilities of approximately $195,000.
Net cash provided by financing activities was approximately $87.7 million and consisted of proceeds of $61.2 million received from the issuance of common stock at our IPO, the exercise of the overallotment option by our underwriters in connection with our IPO, the release of funds held in an escrow account concurrent with the closing of our IPO, and proceeds of $29.6 million received from the issuance of common stock and warrants in connection with the private placement offering, offset by approximately $2.9 million of issuance cost paid during the period.
Net cash used in operating activities was approximately $10.3 million. The net loss is higher than cash used in operating activities by $0.4 million The primary drivers for the difference are adjustments for non-cash charges such as depreciation and amortization of approximately $15,000, stock-based compensation of $206,000 due to increased headcount and corresponding equity grants made to new and existing employees, and increase in current liabilities of approximately $613,000 due to increased expense relating to our Phase 2 clinical study activity and a decrease in license fee payable by $500,000, partially offset by decrease in current assets of approximately $30,000.
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