Dipexium Pharmaceuticals Reports Third Quarter 2016 Financial Results
NEW YORK, Nov. 10, 2016 /PRNewswire/ -- Dipexium Pharmaceuticals, Inc. (Nasdaq: DPRX), a late-stage pharmaceutical company focused on the development and commercialization of Locilex® (pexiganan cream 0.8%), a novel, broad-spectrum, topical antibiotic peptide, today reported financial results for the quarter ended September 30, 2016.
Financial Results for the Third Quarter of 2016
For the three months ended September 30, 2016, Dipexium reported a net loss of $4.6 million, compared to a net loss of $5.0 million for the three months ended September 30, 2015, a decrease of $0.4 million. The change was primarily due to a $0.5 million decrease in manufacturing relating expenses offset by a $0.1 million increase in Phase 3 clinical trial related expenses.
For the nine months ended September 30, 2016, Dipexium reported a net loss of $15.9 million, compared to a net loss of $13.2 million for the nine months ended September 30, 2015, an increase of $2.7 million. This change was primarily due to a $2.9 million increase in research and development expenses partially offset by a $0.2 million decrease in selling, general, and administrative expenses. The increase in research and development expenses were due to $2.9 million of increased Phase 3 trial enrollment and related clinical trial expenses. The decrease in general and administrative expenses is primarily attributable to a decrease of $0.1 million for stock-based compensation expenses and a $0.1 million decrease in marketing related costs.
Net cash used in operating activities for the nine months ended September 30, 2016 was $13.4 million versus $10.6 million for the nine months ended September 30, 2015. The increase in cash used in operating activities is primarily attributable to increased research and development expenses associated with increased Phase 3 trial enrollment and related clinical trial expenses.
At September 30, 2016, the Company had cash and short-term investments of $18.8 million, compared to $32.2 million at December 31, 2015. The Company's cash balance is currently anticipated to fund operations through 2017.
About Dipexium Pharmaceuticals
Dipexium Pharmaceuticals, Inc. (NASDAQ: DPRX) is a late-stage pharmaceutical company focused on the development and commercialization of Locilex (pexiganan cream 0.8%), a novel, broad-spectrum, topical antibiotic peptide. For more information, please visit www.dipexiumpharmaceuticals.com.
Forward-Looking Statements
This press release may contain, in addition to historical information, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements relating to our anticipated clinical and regulatory development of our product candidate, including development for the European market and development of an intravenous formulation; our cash position; cash flows; business strategies and initiatives; and other matters. We have based these forward-looking statements on the assumptions, expectations and projections about future events that we hold at the time the statements are made. We use words like "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements.
Investors should consider the information contained in our filings with the U.S. Securities and Exchange Commission (the "SEC"), including our Annual Report on Form 10-K, especially in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections, our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Other unknown or unpredictable factors also could have material adverse effects on our future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our beliefs at the time the statements are made. We do not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, nor any other information provided in a conference call, webcast, news release, SEC filing or website.
| DIPEXIUM PHARMACEUTICALS, INC. |
|||||
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
| September 30, |
December 31, |
||||
| 2016 |
2015 |
||||
| ASSETS |
(unaudited) |
||||
| CURRENT ASSETS |
|||||
| Cash |
$ 7,838,962 |
$ 5,234,953 |
|||
| Short-term Investments |
10,995,395 |
26,977,362 |
|||
| Prepaid Expenses |
169,685 |
146,145 |
|||
| TOTAL CURRENT ASSETS |
19,004,042 |
32,358,460 |
|||
| OTHER ASSETS |
|||||
| Security Deposit |
56,630 |
49,385 |
|||
| TOTAL OTHER ASSETS |
56,630 |
49,385 |
|||
| TOTAL ASSETS |
$ 19,060,672 |
$ 32,407,845 |
|||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||
| CURRENT LIABILITIES |
|||||
| Accounts Payable and Accrued Expenses |
$ 890,506 |
$ 1,606,307 |
|||
| TOTAL LIABILITIES |
890,506 |
1,606,307 |
|||
| COMMITMENTS AND CONTINGENCIES |
|||||
| SHAREHOLDERS' EQUITY |
|||||
| Common Stock: $.001 par value, 30,000,000 shares authorized, 10,399,642 and 10,301,114 |
|||||
| shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively |
10,399 |
10,301 |
|||
| Additional paid-in capital |
75,077,642 |
71,852,692 |
|||
| Accumulated deficit |
(56,917,875) |
(41,061,455) |
|||
| TOTAL SHAREHOLDERS' EQUITY |
18,170,166 |
30,801,538 |
|||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ 19,060,672 |
$ 32,407,845 |
|||
| DIPEXIUM PHARMACEUTICALS, INC. |
|||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||
| (Unaudited) |
|||||||||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||
| 2016 |
2015 |
2016 |
2015 |
||||||
| REVENUES |
$ - |
$ - |
$ - |
$ - |
|||||
| EXPENSES |
|||||||||
| OPERATING EXPENSES |
|||||||||
| Research and Development Expenses |
3,113,919 |
3,457,165 |
10,398,499 |
7,456,829 |
|||||
| Selling, General and Administrative Expenses |
1,530,340 |
1,571,511 |
5,499,778 |
5,794,195 |
|||||
| TOTAL OPERATING EXPENSES |
4,644,259 |
5,028,676 |
15,898,277 |
13,251,024 |
|||||
| LOSS FROM OPERATIONS |
(4,644,259) |
(5,028,676) |
(15,898,277) |
(13,251,024) |
|||||
| Interest Income |
12,829 |
9,359 |
41,857 |
12,567 |
|||||
| NET LOSS |
$ (4,631,430) |
$ (5,019,317) |
$ (15,856,420) |
$ (13,238,457) |
|||||
| LOSS PER SHARE |
|||||||||
| Basic and diluted net loss per common share |
$ (0.45) |
$ (0.49) |
$ (1.53) |
$ (1.45) |
|||||
| Weighted average common shares outstanding basic and diluted |
10,359,493 |
10,274,718 |
10,338,378 |
9,139,310 |
|||||
Company Contacts:
David Garrett
Vice President, Finance & Corporate Development
Dipexium Pharmaceuticals, Inc.
212-269-2834
[email protected]
Lisa Wilson
Investor Relations
In-Site Communications, Inc.
212-452-2793
[email protected]
© 2016 Dipexium Pharmaceuticals, Inc. All rights reserved.
SOURCE Dipexium Pharmaceuticals, Inc.
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