Veloxis Pharma to Shut Down New Jersey Office, Moving All Operations to North Carolina

Veloxis Pharma to Shut Down New Jersey Office, Moving All Operations to North Carolina March 1, 2017
By Alex Keown, Breaking News Staff

CARY, N.C. – Denmark-based Veloxis Pharmaceuticals A/S has closed the doors on its Edison, N.J. office on Feb. 28 and shifted all operations to its North Carolina offices, the company announced.

Craig Collard, chief executive officer of Veloxis, said consolidating its U.S. operations into one location will help the company “achieve greater operational efficiency and maximize opportunities for collaboration between internal stakeholders.” Cary is the site of Veloxis’ headquarters for its U.S. subsidiary, Veloxis Pharmaceuticals, Inc.

The closing of the office was announced one day ahead of Veloxis’ investor call regarding its 2016 financial report. In that call, the company said it is moving the bulk of its operations to the Cary site, since most of its current activities are conducted there. Although Veloxis is moving operations to the U.S., the company said it will continue to be a Danish company listed on Nasdaq Copenhagen A/S.

In 2015, Veloxis launched Envarsus XR, a once daily dose of tacrolimus, for the prophylaxis of rejection in kidney transplant patients who need to convert from immediate release tacrolimus products to once-daily Envarsus. Envarsus XR has Orphan Drug status in the U.S. Since its launch, Envarsus has been used in more than 50 percent of transplant centers in the United States, the company said in its annual report. The company said it estimates Envarsus as being used in more than 3,300 patients in Europe. Veloxis said it will continue to focus on direct commercialization of Envarsus XR in the United States and is also looking to expand its use globally by seeking partnerships.

For 2016, the company said revenue increased substantially over 2015 numbers. The company generated $9.2 million in revenue from commercial sales, which is more than four-times the $2.1 million it generated in 2015, the company said in its preliminary financial report.

As of Dec. 31, 2016, Veloxis said it has cash and cash equivalents of $3.4 million, which is down significantly from the $15.8 million it had in 2015. The decrease in cash position reflects the changes in operating activities in 2016 as offset by drawdowns against the five-year loan and security agreement with Lundbeckfond Invest A/S and Novo A/S, Veloxis said in its statement.

Additionally, the company anticipates a 2017 operating loss before the recognition of income from new license agreements and before accounting for stock compensation. The loss is expected to be in the range of $5 to $15 million. Shares of Veloxis are up slightly this morning, trading at $1.14 per share.

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