Net Cash Burn of $1.4 million during First Six Months of 2009 compared to $5.5 Million in the First Six Months of 2008
EMERYVILLE, Calif., Aug. 14 /PRNewswire-FirstCall/ -- NovaBay((R)) Pharmaceuticals, Inc. (NYSE Amex: NBY), a clinical stage biopharmaceutical company developing first-in-class anti-infective products for the treatment and prevention of a wide range of infections without causing resistance, reported today its financial results and operational highlights for the second quarter of 2009 ended June 30, 2009.
License and collaboration revenue for the second quarter of 2009 increased $ 0.9 million to $2.3 million from $1.4 million for the second quarter of 2008. This revenue consisted almost exclusively of amounts earned under the license and collaboration agreements with Alcon (NYSE: ACL), and beginning with this quarter, Galderma S.A., for amortization of the upfront technology access fees, receipt of milestone payments, and other amounts that have been reimbursed for the funding of research and development activities performed during the period.
The net loss for the second quarter of 2009 was $0.3 million, or $0.01 per share, compared to a net loss of $2.4 million, or $0.11 per share, reported for the second quarter of 2008. As of June 30, 2009, the company's cash, cash equivalents and short-term investments totaled $10.7 million, a net decrease of only $1.4 million from the $12.1 million reported at December 31, 2008. This represents a 75% reduction from the $5.5 million decrease during the first six months of 2008. The decreased burn rate in 2009 was largely due to cost containment measures, delayed research, development, and clinical expenses and receipt of a milestone and higher reimbursement payments from Alcon and upfront payments from Galderma S.A.
Second Quarter 2009 Financial Results
License and collaboration revenue for the second quarter of 2009 increased 63.5% to $2.3 million from $1.4 million for the second quarter of 2008. License and collaboration revenue consists of the amortization of the upfront technology access fees previously paid by our corporate partners, and reimbursements for the funding of research and development activities, and payments for milestones achieved.
The net loss for the second quarter of 2009 was $0.3 million, or $0.01 per share, compared to a net loss of $2.4 million, or $0.11 per share, reported for the second quarter of 2008.
Research and development expenses for the quarter ended June 30, 2009 totaled $1.4 million, compared to $2.4 million for the quarter ended June 30, 2008. The decrease was due to budget reductions at year end 2008 resulting in decreased headcount, and delayed research, development, and clinical expenses.
General and administrative expenses for the quarter ended June 30, 2009 were $1.2 million, compared to $1.6 million in the comparable 2008 period. Employee costs related to general and administrative expenses decreased as a result of staff reductions at year end 2008. Professional services costs increased primarily as a result of increased Sarbanes-Oxley implementation and year end audit costs.
About NovaBay Pharmaceuticals, Inc.
NovaBay Pharmaceuticals is a mid-stage biopharmaceutical company focused on developing its proprietary and patented Aganocide((R)) compounds, first-in-class, novel, synthetic anti-infective product candidates that are bioequivalent to the active antimicrobial molecules generated within white blood cells to treat and prevent a wide range of infections without causing resistance. NovaBay has internal development programs aimed at addressing hospital and respiratory infections. The company has a licensing and research collaboration agreement with Alcon, Inc. for use of its Aganocides in the eye, ear and sinus, and in contact lens solutions. NovaBay has entered into an agreement with Galderma S.A. to develop and commercialize Aganocides in acne, impetigo and other dermatological indications. NovaBay((R)) and Aganocide((R)) are trademarks of NovaBay Pharmaceuticals, Inc. For more information on NovaBay, visit www.novabaypharma.com.
NOVABAY PHARMACEUTICALS, INC
(formerly NovaCal Pharmaceuticals Inc.)
(a developmental stage company)
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
December 31, June 30,
2008 2009
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $12,099 $8,000
Short-term investments 2,685
Prepaid expenses and other current assets 414 769
Total current assets 12,513 11,454
Property and equipment, net 1,456 1,575
TOTAL ASSETS $13,969 $13,029
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Current liabilities:
Accounts payable $406 $533
Accrued liabilities 1,166 636
Capital lease obligation 42 29
Equipment loan 366 387
Deferred revenue 2,500 3,100
Total current liabilities 4,480 4,685
Capital lease obligation - non-current 7
Equipment loan - non-current 470 271
Deferred revenue - non-current 1,667 617
Total liabilities 6,624 5,573
Stockholders' Equity:
Common stock, $0.01 par value; 65,000 and
65,000 shares authorized at December 31,
2008 and June 30, 2009, respectively,
21,471 and 21,980 issued and outstanding at
December 31, 2008 and June 30, 2009,
respectively 215 220
Additional paid-in capital 33,718 34,434
Accumulated other comprehensive income (loss) (3)
Accumulated deficit during development stage (26,588) (27,195)
Total stockholders' equity 7,345 7,456
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $13,969 $13,029
NOVABAY PHARMACEUTICALS, INC
(formerly NovaCal Pharmaceuticals Inc.)
(a developmental stage company)
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Cumulative
Period from
July 1, 2002
(date of
development
stage
Three Months Ended Six Months Ended inception) to
June 30, June 30, June 30,
2008 2009 2008 2009 2009
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
REVENUE
License and
collaboration
revenue $1,442 $2,357 $2,933 $4,968 $19,136
EXPENSES
Operating Expenses:
Research and
development 2,371 1,444 5,246 2,805 27,812
General and
administrative 1,575 1,191 3,031 2,769 19,734
Total operating
expenses 3,946 2,635 8,277 5,574 47,546
Interest expense (24) (20) (49) (43) (188)
Other income
(expense), net 118 9 306 42 1,417
Total Other income
(expense), net 94 (11) 257 (1) 1,229
Net loss before
income taxes (2,410) (289) (5,087) (607) (27,181)
Provision for
income taxes 2 14
Net loss $(2,410) $(289) $(5,089) $(607) $(27,195)
Net loss per share:
Basic and
diluted $(0.11) $(0.01) $(0.24) $(0.03)
Shares used in per
share calculations:
Basic and
diluted 21,334 21,931 21,311 21,775
SOURCE NovaBay Pharmaceuticals, Inc.
