MENLO PARK, Calif., Dec. 14, 2015 /PRNewswire/ -- BioPharmX Corporation (NYSE MKT: BPMX), a specialty pharmaceutical company focusing on dermatology and women’s health, today announced its financial results for the third fiscal quarter ended October 31, 2015.
Recent Highlights:
- Completed a direct investment of approximately $5.9 million in gross proceeds through the sale of 4,100,000 shares of the company’s common stock at a purchase price of $1.43 per share to investment vehicles of Franklin Advisers.
- Announced early positive pre-clinical data for BPX-01, the company’s unique topical formulation of minocycline, suggesting a 1% dose works as well as other 4% topical products under development, reducing potential side effects.
- Added 3,025 GNC store locations supplying Violet® iodine, the company’s breast health supplement, raising its U.S. retail footprint to more than 7,500 stores.
- Appointed AnnaMarie Daniels, a life science industry veteran, as executive vice president of clinical and regulatory affairs.
“We continue to make meaningful progress in our strategic and clinical development initiatives,” said Jim Pekarsky, chief executive officer. “We are delighted to have secured additional financing, as well as the confidence of Franklin Advisers in our product development and growth plans. Their direct investment has bolstered our balance sheet and enables further investment in our clinical programs and product pipeline. We are in a unique and exciting position today as we move towards further clinical development of our topical acne treatment and other initiatives in our pipeline. We look forward to bringing the benefits of our health and wellness products to patients.”
Third Quarter Financial Results
Total operating expenses were $3.8 million for the quarter ended October 31, 2015, compared to $2.2 million the prior year quarter primarily as a result of increased expenditures for the company’s acne drug pre-clinical preparations and continued marketing and commercialization efforts for Violet iodine.
Net loss for the third quarter was $3.9 million, or $0.18 per share, compared to a net loss of $2.3 million, or $0.21 per share, during the prior year quarter.
Excluding stock-based compensation expense and amortization of purchased intangible assets, non-GAAP net loss for the third quarter was $3.6 million, or $0.17 per share, compared with a net loss of $1.9 million, or $0.18 per share, during the prior year quarter.
Cash and cash equivalents as of October 31, 2015 were $2.2 million. Since the close of the third quarter, the company completed a direct investment with Franklin Advisers of approximately $5.9 million in gross proceeds. The company also expects proceeds of $2 million in cash from the closing of a previously announced private placement with Korea Investment Partners Overseas Expansion Platform Fund, an existing shareholder.
Management Overview and Recent Business Developments
Beyond its first commercially available product, Violet iodine, BioPharmX Corporation is also pursuing the development of novel products targeting large dermatologic markets. These include:
BPX-01
BPX-01, the company’s topical acne drug, will deliver minocycline in a directly applied, gel-like treatment that effectively treats acne, but with fewer expected side effects than its oral counterpart. During the third quarter, the company presented pre-clinical data at three key dermatology seminars suggesting that a 1% dose of minocycline in BPX-01 can work as well as the 4% topical products that are under development by competitors, lowering the likelihood of side effects. The company expects to file an IND with the FDA for BPX-01 and currently anticipates Phase 2 (505)(b) clinical trials to commence in early calendar year 2016.
BPX-02
BPX-02 is still in research mode as the company continues to make progress in the development of a prescription drug formulating biologics materials for a dermatology application.
BPX-03 and Violet Iodine
BPX-03, the company’s prescription strength molecular iodine product that complements its Violet iodine product, is in development and the company plans to complete a multi-site IRB study over the next 12 months in preparation for Phase 3 trials. Phases 1 and 2 of these trials have already been completed. Both the Violet iodine supplement and BPX-03 are uniquely formulated for the treatment of fibrocystic breast condition as well as overall breast health.
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