News Column

Dipexium Pharmaceuticals Reports Second Quarter 2014 Financial and Operational Results

August 25, 2014



By a News Reporter-Staff News Editor at Clinical Trials Week -- 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, reported its financial results for the second quarter ended June 30, 2014 and provided an update on operational progress (see also Dipexium Pharmaceuticals, Inc.).

"The first half of 2014 has been an exciting period for Dipexium. We are very pleased with the progress achieved since the completion of our Initial Public Offering in March," stated David P. Luci, President & Chief Executive Officer of Dipexium. "Importantly, we remain on our stated timeline to complete enrollment in the OneStep-1 and OneStep-2 pivotal Phase 3 clinical trials in the first quarter of 2015 and file a New Drug Application (NDA) for Locilex® in the second half of 2015."

Financial Results for the Second Quarter of 2014

For the three months ended June 30, 2014, Dipexium reported a net loss of approximately $3.9 million, compared to $0.4 million for the three months ended June 30, 2013, an increase of $3.5 million, primarily due to a $2.5 million increase in research and development expenses and a $1.0 million increase in general and administrative expenses. The increased research and development expenses were primarily due to an increase of $1.9 million in research and development consulting-related expenses for the planning and execution of Locilex®'s Phase 1 and 3 clinical trials and a $0.6 million increase in research and development manufacturing costs related to manufacturing Locilex® for clinical trials. The increase in general and administrative expenses is primarily attributable to an increase of $0.7 million for compensation related expenses and an increase in $0.3 million in professional fees and office expenses.

For the six months ended June 30, 2014, Dipexium reported a net loss of approximately $6.5 million, compared to $0.8 million for the six months ended June 30, 2013, an increase of $5.7 million, primarily due to a $4.3 million increase in research and development expenses and a $1.4 million increase in general and administrative expenses. The increased research and development expenses were primarily due to an increase of $3.5 million in research and development consulting related expenses for the planning and execution of the clinical trials and a $0.8 million increase in research and development manufacturing costs related to making the product for the clinical trials. The increase in general and administrative expenses is primarily attributable to an increase of $0.9 million for compensation related expenses and an increase in $0.4 million in professional fees and a $0.1 million increase in office expenses.

Net cash used in operating activities for the six months ended June 30, 2014 was $5.7 million.

At June 30, 2014, the Company had a cash balance of approximately $32.6 million, as compared to approximately $3.9 million at December 31, 2013. The increase in cash was due to the consummation of the Company's Initial Public Offering in March, which provided net proceeds of approximately $34.5 million. The Company's cash balance is currently anticipated to fund operations through the first half of 2016.

Keywords for this news article include: Dipexium Pharmaceuticals Inc., Investment and Finance, Clinical Trials and Studies.

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Source: Clinical Trials Week


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