EPIX Pharmaceuticals gains ground on losses in Q3

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EPIX Pharmaceuticals has reported its consolidated financial results for the 2008 third quarter, which ended Sept. 30.

For the quarter, the company booked a net loss of $10.2 million, compared with $12.9 million for the same quarter last year.

The Lexington, Mass.-based EPIX reported total revenues of $5.1 million, compared with $5.3 million for the third quarter of 2007. Revenues during the 2008 and 2007 third quarter periods primarily relate to reimbursed costs and milestones earned associated with GlaxoSmithKline and Cystic Fibrosis Foundation Therapeutics collaborations.

Research and development (R &D) expenses totaled $11 million for the quarter, compared with $14.9 million in the third quarter of 2007. The decrease in R &D expenses was primarily due to decreased clinical trial costs associated with the company’s therapeutic clinical development programs, including the discontinuation of PRX-00023, previously being developed for depression, the company said.

At the end of the quarter, EPIX had cash, cash equivalents and short-term investments of $34.5 million compared with $61.1 million last year. EPIX said it currently has $100 million of convertible debt outstanding and approximately 41.7 million shares of common stock outstanding.

On Oct. 23, EPIX announced that it had reduced its work force by approximately 23 percent and narrowed the current focus of its research and development efforts.

EPIX estimated that the reduction will result in a savings of approximately $3 million. In addition, the company said it expects to realize savings in future research and development spending associated with the narrowing of its R &D focus.

The company also updated its fiscal year 2008 guidance, stating it expects to realize a net loss in the range of $37 million to $42 million, compared to its previously stated 2008 net loss guidance of $45 million to $50 million.