Emisphere Technologies Inc. (EMIS, Financial) filed Amended Quarterly Report for the period ended 2009-03-31.
Emisphere Technologies is a biopharmaceutical company focused on the development of a family of oral heparin products; the application of proprietary synthetic chemical compounds to serve as ``carriers`` to facilitate the transport of therapeutic macromolecules and other compounds across biological membranes; and the development in conjunction with the company's pharmaceutical collaborators of oral formulations of selected therapeutic macromolecules. Emisphere Technologies Inc. has a market cap of $27.4 million; its shares were traded at around $1.05 with and P/S ratio of 109.17. Emisphere Technologies Inc. had an annual average earning growth of 19.6% over the past 5 years.
The Agreement provides that Company shall make the following payments to BMR: (a) One Million Dollars, payable upon execution of the Agreement, (b) Five Hundred Thousand Dollars, payable six months after the execution date of the Agreement, and (c) Seven Hundred Fifty Thousand Dollars, payable twelve months after the execution date of the Agreement. By terminating its Tarrytown lease, the Companys monthly cash burn rate is reduced by approximately $0.3 million immediately. In addition, a total of approximately $14 million in future lease payments were eliminated. Through this lease termination agreement the Company realized a critical milestone in its cost control plan, which will help meet its cash burn target of between $7 and $8 million per year.
Other income decreased $3.3 million for the three months ended March 31, 2009 in comparison to the same period last year primarily due to the receipt of the initial $1.5 million payment for the sale of certain Emisphere patents and a patent application relating to diketopiperazine technology to MannKind Corporation in 2008; an increase of $0.5 million in related party interest expense and a net change in fair value of derivative instruments of $1.3 million due to relative changes in stock price during the three months ended March 31, 2009 and March 31, 2008 respectively.
As a result of the above factors, we had a net loss of $5.4 million for the three months ended March 31, 2009, compared to a net loss of $3.9 million for the three months ended March 31, 2008.
Since our inception in 1986, we have generated significant losses from operations and we anticipate that we will continue to generate significant losses from operations for the foreseeable future. As of March 31, 2009, our accumulated deficit was approximately $420.8 million and our stockholders deficit was approximately $36.2 million. Our net loss and operating loss was $5.4 million and $4.7 million, respectively for the three months ended March 31, 2009 and $24.4 million and $26.3 million respectively for the year ended December 31, 2008, respectively.
However, we have implemented aggressive cost control initiatives and management processes to extend our cash runway. By terminating its Tarrytown lease, the Companys monthly cash burn rate is reduced by approximately $0.3 million immediately. A total of approximately $14 million in future lease payments were eliminated. The Company realized a critical milestone in its cost control plan which will contribute to meeting its cash burn target of between $7 and $8 million per year. We are also pursing new as well as enhanced collaborations and exploring other financing options, with the objective of minimizing dilution and disruption.
Read the The complete ReportEMIS is in the portfolios of Carl Icahn of Icahn Capital Management LP.
Emisphere Technologies is a biopharmaceutical company focused on the development of a family of oral heparin products; the application of proprietary synthetic chemical compounds to serve as ``carriers`` to facilitate the transport of therapeutic macromolecules and other compounds across biological membranes; and the development in conjunction with the company's pharmaceutical collaborators of oral formulations of selected therapeutic macromolecules. Emisphere Technologies Inc. has a market cap of $27.4 million; its shares were traded at around $1.05 with and P/S ratio of 109.17. Emisphere Technologies Inc. had an annual average earning growth of 19.6% over the past 5 years.
Highlight of Business Operations:
During 2008, Emisphere also continued to focus on improving operational efficiency. On December 8, 2008 we announced plans to strengthen our financial foundation while maintaining our focus on advancing and commercializing the Eligen® Technology. By closing our research and development facility in Tarrytown, New York and utilizing independent contractors to conduct essential research and development, we estimate that we will reduce our annual operating costs by approximately 60% from 2008 levels. Emisphere estimates it will reduce cash expenditures by over $11 million annually, with a targeted cash burn rate of between $7 and $8 million per year. Additionally, we expect to accelerate the commercialization of the Eligen® Technology in a cost effective way and to gain operational efficiencies by tapping into more advanced scientific processes independent contractors can provide. The amount of savings realized in 2009 depends on how quickly these actions can be fully implemented. Implementation began immediately in December 2008 and is expected to be completed during the second quarter 2009.The Agreement provides that Company shall make the following payments to BMR: (a) One Million Dollars, payable upon execution of the Agreement, (b) Five Hundred Thousand Dollars, payable six months after the execution date of the Agreement, and (c) Seven Hundred Fifty Thousand Dollars, payable twelve months after the execution date of the Agreement. By terminating its Tarrytown lease, the Companys monthly cash burn rate is reduced by approximately $0.3 million immediately. In addition, a total of approximately $14 million in future lease payments were eliminated. Through this lease termination agreement the Company realized a critical milestone in its cost control plan, which will help meet its cash burn target of between $7 and $8 million per year.
Other income decreased $3.3 million for the three months ended March 31, 2009 in comparison to the same period last year primarily due to the receipt of the initial $1.5 million payment for the sale of certain Emisphere patents and a patent application relating to diketopiperazine technology to MannKind Corporation in 2008; an increase of $0.5 million in related party interest expense and a net change in fair value of derivative instruments of $1.3 million due to relative changes in stock price during the three months ended March 31, 2009 and March 31, 2008 respectively.
As a result of the above factors, we had a net loss of $5.4 million for the three months ended March 31, 2009, compared to a net loss of $3.9 million for the three months ended March 31, 2008.
Since our inception in 1986, we have generated significant losses from operations and we anticipate that we will continue to generate significant losses from operations for the foreseeable future. As of March 31, 2009, our accumulated deficit was approximately $420.8 million and our stockholders deficit was approximately $36.2 million. Our net loss and operating loss was $5.4 million and $4.7 million, respectively for the three months ended March 31, 2009 and $24.4 million and $26.3 million respectively for the year ended December 31, 2008, respectively.
However, we have implemented aggressive cost control initiatives and management processes to extend our cash runway. By terminating its Tarrytown lease, the Companys monthly cash burn rate is reduced by approximately $0.3 million immediately. A total of approximately $14 million in future lease payments were eliminated. The Company realized a critical milestone in its cost control plan which will contribute to meeting its cash burn target of between $7 and $8 million per year. We are also pursing new as well as enhanced collaborations and exploring other financing options, with the objective of minimizing dilution and disruption.
Read the The complete ReportEMIS is in the portfolios of Carl Icahn of Icahn Capital Management LP.
