EPIX Pharmaceuticals has reported a sharp decrease in net loss for its consolidated financial results for the second quarter of 2008, which ended June 30.
For the quarter, the Lexington, Mass.-based company booked a net loss of $2.3 million, compared with $18 million for the same quarter last year.
Total revenues were $17.4 million, compared with $1.8 million for the second quarter of 2007. EPIX said that the increase in revenue primarily relates to $13 million in milestone payments earned from existing collaborations during the second quarter of 2008.
Research and development expenses totaled $15 million for the quarter, compared with $14.8 million in the same quarter last year, which the company attributes to increased spending on the company's preclinical programs.
General and administrative expenses were $3.4 million for the quarter compared with $4.5 million for the second quarter of 2007, due to lower legal expenses, the company reported.
As of June 30, EPIX reported cash, cash equivalents and short-term investments of $43.2 million compared with $61.1 million on Dec. 31, 2007. The company said it currently has $100 million of convertible debt outstanding and approximately 41.4 million shares of common stock were outstanding at the close of the second quarter.
According to Elkan Gamzu, PhD, interim CEO, EPIX is reiterating its previously stated fiscal year 2008 guidance and currently expects to realize a net loss in the range of $45 million to $50 million and revenue in the range of $25 million to $30 million. Revenue in 2008 is expected to relate primarily to reimbursed research and development costs and milestone achievements under the company's existing strategic collaborations, Gamzu said.
Management currently estimates that cash, cash equivalents and marketable securities on hand at the close of the second quarter, together with anticipated revenue to be earned in 2008, will be sufficient to fund operations through the first quarter of 2009. The company said its recent CEFF may provide funding beyond the first quarter of 2009, depending upon the amount and timing of drawdowns from the facility.