BETHESDA, Md., Nov. 11, 2011 /PRNewswire/ -- Spherix Incorporated (NASDAQ: SPEX) -- an innovator in biotechnology for therapy in diabetes, metabolic syndrome and atherosclerosis, and providers of technical and regulatory consulting services to food, supplement, biotechnology and pharmaceutical companies -- today reported financial results for the three and nine months ended September 30, 2011.
Recent and Upcoming Highlights
Financial Results for the Three and Nine Months Ended September 30, 2011The net loss for the third quarter of 2011 was $0.9 million or $0.36 per share, compared with a net loss for the third quarter of 2010 of $2.1 million or $1.25 per share. The reduction of the net loss was attributed mainly to lower research and development (R&D) expense.
R&D expense for the third quarter of 2011 was $0.4 million, a decrease of $1.1 million from R&D expense of $1.5 million in the prior year's third quarter. R&D expenses are entirely incurred by Biospherics, the Company's pharmaceutical development subsidiary. The decrease in R&D was attributed to lower spending following completion of a Phase 3 clinical trial and a Phase 2 dose-ranging trial to develop D-tagatose for the treatment of Type 2 diabetes. Third quarter 2011 R&D expense is related to the Company's preclinical trials for the use of both D-tagatose and SPX106 in lowering triglyceride levels. D-Tagatose, a naturally occurring sugar, is a low-calorie, full-bulk sweetener previously approved by the Food and Drug Administration (FDA) as a GRAS (Generally Recognized as Safe) food ingredient.
The net loss for the nine months ended September 30, 2011 was $2.2 million or $0.86 per share, compared with a net loss for the nine months ended September 30, 2010 of $6.8 million or $3.99 per share. R&D expense for the first nine months of 2011 was $1.1 million, down from $4.3 million in the comparable prior year period due to completion of the aforementioned clinical trials.
The Company had cash and cash equivalents of $5.0 million and working capital of $4.7 million as of September 30, 2011, compared with $5.6 million and $4.9 million, respectively, as of December 31, 2010. The Company raised $2.5 million, net of offering costs, in a registered direct offering of common stock and warrants during the first quarter of 2011. In addition, the Company subsequently raised $1.15 million, net of offering costs, in a private placement of common stock and warrants in October 2011.
Management CommentaryRobert Lodder, Ph.D., President of Spherix, noted that "The Company is pursuing opportunities to diversify and strengthen its pipeline, adding value for the shareholders."
"The excellent preclinical results we are generating from our compound, SPX-106T, which is a combination of SPX-106 and D-tagatose, is a key achievement of the third quarter and recent weeks," commented Claire Kruger, Ph.D., Chief Executive Officer of Spherix.
"We hope to begin testing SPX-106T in humans in the spring, and plan to file an Investigational New Drug application with the FDA in early 2012," concluded Dr. Kruger.
Business Update Conference Call and WebcastSpherix management will host a conference call to provide a business update on Wednesday, November 16, 2011, beginning at 12:00 noon Eastern time. To access the conference call, from the U.S. please dial (866) 322-1352 and from outside the U.S. please dial (706) 643-6246. All listeners should provide the following passcode 24848484. Individuals interested in listening to the live conference call via the Internet may do so by logging on to the Company's website, www.spherix.com.
Following the end of the conference call, a telephone replay will be available until midnight November 22 and can be accessed by dialing (855) 859-2056 from the U.S. or (404) 537-3406 from outside of the U.S. All listeners should provide the following passcode: 24848484. The webcast will be available for 30 days.
About SpherixSpherix Incorporated was launched in 1967 as a scientific research company under the name Biospherics Research. The Company now leverages its scientific and technical expertise and experience through its two subsidiaries – Biospherics Incorporated and Spherix Consulting, Inc. Biospherics is dedicated to development of D-tagatose and recently completed a Phase 3 clinical trial to study the use of D-tagatose as a treatment for Type 2 diabetes. Biospherics is actively seeking a pharma partner to continue the diabetes development while exploring D-tagatose as a potential treatment for high triglycerides, a risk factor for atherosclerosis, myocardial infarction, and stroke. Spherix's Consulting subsidiary provides scientific and strategic support for suppliers, manufacturers, distributors and retailers of conventional foods, biotechnology-derived foods, medical foods, infant formulas, food ingredients, dietary supplements, food contact substances, pharmaceuticals, medical devices, consumer products and industrial chemicals and pesticides. For more information, please visit www.spherix.com.
Forward-Looking Statements This release contains forward-looking statements which are made pursuant to provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that such statements in this release, including statements relating to planned clinical study design, regulatory and business strategies, plans and objectives of management and growth opportunities for existing or proposed products, constitute forward-looking statements which involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements. The risks and uncertainties include, without limitation, risks that product candidates may fail in the clinic or may not be successfully marketed or manufactured, we may lack financial resources to complete development of D-tagatose, the FDA may interpret the results of studies differently than us, competing products may be more successful, demand for new pharmaceutical products may decrease, the biopharmaceutical industry may experience negative market trends, our continuing efforts to develop D-tagatose may be unsuccessful, our common stock could be delisted from the Nasdaq Capital Market, and other risks and challenges detailed in our filings with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on any forward-looking statements which speak only as of the date of this release. We undertake no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances that occur after the date of this release or to reflect the occurrence of unanticipated events.
- Tables Follow -Condensed Consolidated Statements of Operations(Unaudited) Three Months Ended Sept. 30, Nine Months Ended Sept. 30, 2011 2010 2011 2010 Revenue$
,028,268Operating expensesDirect costs
(87,399)(121,841)(336,714)(353,740)Research and development expense
(371,327)(1,453,987)(1,131,329)(4,310,471)Selling, general and administrative expense
(653,651)(933,507)(2,271,369)(3,214,257)Total operating expenses
(1,112,377)(2,509,335)(3,739,412)(7,878,468)Loss from operations(913,913)(2,140,497)(3,048,595)(6,850,200)Interest income
--53,007-Gain on settlement of obligations
--845,000-Loss before taxes
(913,318)(2,139,443)(2,147,908)(6,844,930)Income tax expense
(913,318)$ (2,139,443)$ (2,162,393)$ (6,844,930)Net loss per share, basic
(0.36)(1.25)(0.86)(3.99)Net loss per share, diluted
(0.36)(1.25)(0.86)(3.99)Weighted average shares outstanding, basic
2,562,4881,715,0652,524,5411,715,065Weighted average shares outstanding, diluted
2,562,4881,715,0652,524,5411,715,065Condensed Consolidated Balance SheetsASSETS Sept. 30, 2011
(Unaudited) December 31,
2010 Current assetsCash and cash equivalents
5,575,310Trade accounts receivable, net of allowance of $8,174 and $65,000
81,97574,110Prepaid research expenses
211,934464,322Prepaid expenses and other assets
3,140155,261Total current assets
5,486,2596,824,990Property and equipment, net of accumulated depreciation of $248,642 and $197,971
108,342154,161Patents, net of accumulated amortization of $2,044 and $50,725
7,017,072LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilitiesAccounts payable and accrued expenses
,211,561Accrued salaries and benefits
68,442170,641Total current liabilities
807,1532,576,853Commitments and contingencies
--Stockholders' equityPreferred stock, $0.01 par value, 2,000,000 shares authorized;5,250 series B issued and 1 outstanding at September 30, 2011and December 31, 2010
--Common stock, $0.01 par value, 5,000,000 shares authorized; 2,570,531 and 2,143,631 issued, 2,562,488 and 2,135,588outstanding at September 30, 2011 and December 31, 2010,respectively
25,70521,436Paid-in capital in excess of par value
41,109,89438,568,814Treasury stock, 8,043 shares, at cost at September 30, 2011and December 31, 2010
(35,847,638)(33,685,245)Total stockholders' equity
4,823,1754,440,219Total liabilities and stockholders' equity
|SOURCE Spherix Incorporated|
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