NexMed Inc. (NEXM, Financial) filed Quarterly Report for the period ended 2009-09-30.
NexMed, Inc. is a pharmaceutical and medical technology company. They develop and commercialize therapeutic products based on proprietary delivery systems. They are currently focusing their efforts on new and patented pharmaceutical products based on a penetration enhancement topical delivery technology known as NexACT(R), which may enable an active drug to be better absorbed through the skin. Nexmed Inc. has a market cap of $12.45 million; its shares were traded at around $0.1399 with and P/S ratio of 2.09.
At September 30, 2009 we had cash and cash equivalents of approximately $1.5 million as compared to $2.9 million at December 31, 2008. During the first nine months of 2009, we received $3,000,000 from Warner from the sale of the U.S. rights to Vitaros® and the related facility license fees as discussed above. The receipt of this cash in 2009 was offset by our cash used in operations in the first nine months of 2009. We spent approximately $4.4 million consisting of our average fixed monthly overhead costs of approximately $325,000 per month in addition to $592,000 towards a cancellation fee as discussed in Note 9 of the Notes to Unaudited Consolidated Financial Statements. Additionally we spent approximately $276,475 in severance and accrued vacation paid as part of our restructuring program implemented in December 2008, $58,000 for Nasdaq annual listing fees, $50,000 of principal on convertible notes repaid as discussed in Note 5 of the Notes to Unaudited Consolidated Financial Statements, $50,000 in investment banker fees to FTN for advisory services to assist us in exploring and evaluating strategic alternatives, $42,000 in legal fees and $175,000 in consulting fees related to the execution of the Warner Asset Purchase Agreement as discussed in Note 10 of the Notes to Unaudited Consolidated Financial Statements and $141,300 for legal fees in connection with a patent lawsuit in which we are the plaintiff suing for patent infringement on our herpes treatment medical device.
Our current cash reserves of approximately $1.1 million as of the date of this report should provide us with sufficient cash to fund our operations into the first quarter of 2010. This projection is based on the restructuring plan we implemented in December 2008 whereby we have reduced our current operating expenditures to approximately $225,000 per month. We anticipate a potential cash infusion from the sale of a portion of our New Jersey State net operating losses, pursuant to the Technology Tax Certificate Transfer Program sponsored by the State. Based on amounts received in previous years, we expect to receive $600,000 before the end of 2009. We have also initiated efforts to lease or sell the facility housing our corporate office, research and development laboratories and manufacturing plant located in East Windsor, New Jersey. If we can successfully sell our facility and repay the existing mortgage, we should be able to reduce our monthly operating expenditures to approximately $200,000 per month, which would then provide us with additional cash to fund our operations. In October 2009, we entered into a non-binding term sheet and are currently in late stage contract negotiations with a potential lessee to lease our facility for a ten year period with an option to buy the facility at any time during the lease. If we successfully close this transaction, our monthly cash burn will drop significantly. The tenant will assume all building expenses and the rental income will exceed our mortgage obligations, thereby resulting in a positive cash flow for us. However, there is no assurance that we will be able to successfully negotiate lease terms, sell our facility at an acceptable price or otherwise successfully complete our restructuring plan.
Revenue. We recorded $109,590 in revenue during the third quarter of 2009, as compared to $305,943 in revenue during the third quarter of 2008. The 2008 revenue primarily consists of $250,000 of revenue recognized in the third quarter of 2008 related to the $1.5 million milestone payment received from Novartis on March 4, 2008 as discussed in Note 10 of the Consolidated Financial Statements. Additionally, revenue in 2008 is the result of the $55,556 in revenue recognized in 2008 attributable to the up-front payment received in November 2007 from Warner as discussed in Note 10 of the Consolidated Financial Statements. The 2009 revenue consists of facility license fees for the use of our manufacturing facility and related manufacturing know-how related to the sale of the U.S. rights of Vitaros® to Warner as discussed in Note 10 of the Notes to Unaudited Consolidated Financial Statements.
Net Loss. The net loss was $1,190,616 or $0.01 per share and $3,040,094 or $0.04 per share in the third quarter of 2009 and 2008, respectively. The decrease in net loss is primarily attributable to a reduction in overall expenses as part of our restructuring program implemented in December 2008 which has been partially offset by a decrease in revenue during the third quarter of 2009 as discussed above.
Net Loss. The net loss was $1,932,002 or $0.02 per share in the first nine months of 2009 as compared to $6,311,004 or $0.08 per share in the same period in 2008. The significant decrease in net loss is primarily attributable to our reduction in overall expenses as part of our restructuring program implemented in December 2008.
Read the The complete ReportNEXM is in the portfolios of Robert Bruce of Bruce & Co., Inc..
NexMed, Inc. is a pharmaceutical and medical technology company. They develop and commercialize therapeutic products based on proprietary delivery systems. They are currently focusing their efforts on new and patented pharmaceutical products based on a penetration enhancement topical delivery technology known as NexACT(R), which may enable an active drug to be better absorbed through the skin. Nexmed Inc. has a market cap of $12.45 million; its shares were traded at around $0.1399 with and P/S ratio of 2.09.
Highlight of Business Operations:
On October 17, 2008, the U.S. Patent and Trademark Office issued the Notice of Allowance on our patent application for NM100060. This triggered a $2 million milestone payment from Novartis. On October 30, 2008 we received a payment of $3.5 million from Novartis consisting of the balance of $1.5 million of the patient enrollment milestone and the $2 million patent milestone.At September 30, 2009 we had cash and cash equivalents of approximately $1.5 million as compared to $2.9 million at December 31, 2008. During the first nine months of 2009, we received $3,000,000 from Warner from the sale of the U.S. rights to Vitaros® and the related facility license fees as discussed above. The receipt of this cash in 2009 was offset by our cash used in operations in the first nine months of 2009. We spent approximately $4.4 million consisting of our average fixed monthly overhead costs of approximately $325,000 per month in addition to $592,000 towards a cancellation fee as discussed in Note 9 of the Notes to Unaudited Consolidated Financial Statements. Additionally we spent approximately $276,475 in severance and accrued vacation paid as part of our restructuring program implemented in December 2008, $58,000 for Nasdaq annual listing fees, $50,000 of principal on convertible notes repaid as discussed in Note 5 of the Notes to Unaudited Consolidated Financial Statements, $50,000 in investment banker fees to FTN for advisory services to assist us in exploring and evaluating strategic alternatives, $42,000 in legal fees and $175,000 in consulting fees related to the execution of the Warner Asset Purchase Agreement as discussed in Note 10 of the Notes to Unaudited Consolidated Financial Statements and $141,300 for legal fees in connection with a patent lawsuit in which we are the plaintiff suing for patent infringement on our herpes treatment medical device.
Our current cash reserves of approximately $1.1 million as of the date of this report should provide us with sufficient cash to fund our operations into the first quarter of 2010. This projection is based on the restructuring plan we implemented in December 2008 whereby we have reduced our current operating expenditures to approximately $225,000 per month. We anticipate a potential cash infusion from the sale of a portion of our New Jersey State net operating losses, pursuant to the Technology Tax Certificate Transfer Program sponsored by the State. Based on amounts received in previous years, we expect to receive $600,000 before the end of 2009. We have also initiated efforts to lease or sell the facility housing our corporate office, research and development laboratories and manufacturing plant located in East Windsor, New Jersey. If we can successfully sell our facility and repay the existing mortgage, we should be able to reduce our monthly operating expenditures to approximately $200,000 per month, which would then provide us with additional cash to fund our operations. In October 2009, we entered into a non-binding term sheet and are currently in late stage contract negotiations with a potential lessee to lease our facility for a ten year period with an option to buy the facility at any time during the lease. If we successfully close this transaction, our monthly cash burn will drop significantly. The tenant will assume all building expenses and the rental income will exceed our mortgage obligations, thereby resulting in a positive cash flow for us. However, there is no assurance that we will be able to successfully negotiate lease terms, sell our facility at an acceptable price or otherwise successfully complete our restructuring plan.
Revenue. We recorded $109,590 in revenue during the third quarter of 2009, as compared to $305,943 in revenue during the third quarter of 2008. The 2008 revenue primarily consists of $250,000 of revenue recognized in the third quarter of 2008 related to the $1.5 million milestone payment received from Novartis on March 4, 2008 as discussed in Note 10 of the Consolidated Financial Statements. Additionally, revenue in 2008 is the result of the $55,556 in revenue recognized in 2008 attributable to the up-front payment received in November 2007 from Warner as discussed in Note 10 of the Consolidated Financial Statements. The 2009 revenue consists of facility license fees for the use of our manufacturing facility and related manufacturing know-how related to the sale of the U.S. rights of Vitaros® to Warner as discussed in Note 10 of the Notes to Unaudited Consolidated Financial Statements.
Net Loss. The net loss was $1,190,616 or $0.01 per share and $3,040,094 or $0.04 per share in the third quarter of 2009 and 2008, respectively. The decrease in net loss is primarily attributable to a reduction in overall expenses as part of our restructuring program implemented in December 2008 which has been partially offset by a decrease in revenue during the third quarter of 2009 as discussed above.
Net Loss. The net loss was $1,932,002 or $0.02 per share in the first nine months of 2009 as compared to $6,311,004 or $0.08 per share in the same period in 2008. The significant decrease in net loss is primarily attributable to our reduction in overall expenses as part of our restructuring program implemented in December 2008.
Read the The complete ReportNEXM is in the portfolios of Robert Bruce of Bruce & Co., Inc..
