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Optimer Pharmaceuticals Inc. Reports Operating Results (10-Q)

May 06, 2010 | About:

Optimer Pharmaceuticals Inc. (OPTR) filed Quarterly Report for the period ended 2010-03-31.

Optimer Pharmaceuticals Inc. has a market cap of $471.5 million; its shares were traded at around $12.34 with and P/S ratio of 528. Optimer Pharmaceuticals Inc. had an annual average earning growth of 19.2% over the past 5 years.OPTR is in the portfolios of Stanley Druckenmiller of Duquesne Capital Management, LLC.

Highlight of Business Operations:

In March 2010, the OBI Board of Directors approved a Stock Option Plan for equity awards. A total compensation expense of $984,000 and $638,000 was recognized in the three months ended March 31, 2010 and 2009, respectively.

Grant Revenues. Grant revenues for the three months ended March 31, 2010 and 2009 was $297,000 and $83,000, respectively. The increase of $214,000, or 258%, was primarily due to an increase in research efforts related to an NIH grant.

Research and Development Expense. Research and development expense for the three months ended March 31, 2010 and 2009 was $11.4 million and $8.9 million, respectively, an increase of $2.5 million, or 27%. The increase is primarily due to the accrual of a $5.0 million milestone due to Par for the successful completion of the second fidaxomicin Phase 3 trial. The increase is offset by the decrease in Pruvel development related expenses.

General and Administrative Expense. General and administrative expense for the three months ended March 31, 2010 and 2009 was $2.4 million and $2.0 million, respectively. The increase of $340,000, or 17%, was due to higher compensation expenses, including $499,000 of stock compensation expense, an increase of $182,000 over the same period in the prior year, as well as higher consulting expenses.

As of March 31, 2010, cash, cash equivalents and short-term investments totaled approximately $81.2 million as compared to $38.2 million as of December 31, 2009, an increase of approximately $43.0 million. We raised net proceeds of $51.2 million in a follow-on offering of our common stock in March 2010. Of the $81.2 million, $5.7 million was held by OBI as of March 31, 2010.

In October 2009, we entered into certain transactions with our subsidiary, OBI, pursuant to which we assigned certain intellectual property rights and license agreements to OBI related to our OPT-88 and OPT-822/821 product candidates. In connection with these transactions, we entered into a financing agreement with OBI and a group of new investors. Under the terms of the financing agreement, if OBI achieves certain development milestones with respect to OPT-88 and OPT-822/821, we and the group of new investors may be required to purchase approximately an additional $8.6 million and $5.7 million, respectively, of new OBI common shares. While we currently cannot anticipate when, if ever, OBI will achieve these development milestones, under the terms of the financing agreement, our obligation to purchase the additional OBI common shares will not be triggered prior to June 30, 2010.

Read the The complete Report

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Charlie Tian, Ph.D. - Founder of GuruFocus. You can now order his book Invest Like a Guru on Amazon.

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