December 31, 2015
By Mark Terry, BioSpace.com Breaking News Staff
William Carter, the chairman, chief executive officer, and chief scientific officer of Philadelphia-based Hemispherx Biopharma recently had to give back an unspecified number of securities to the company.
In order to stay in compliance with Internal Revenue Services rules regarding qualify performance-based compensation, the company only is allowed to give three million company shares to any one person. Apparently the company goofed and gave Carter more than the allotted shares.
“To rectify this issue,” an SEC filing stated, “on Dec. 8, 2015, Dr. Carter graciously returned to us a sufficient number of securities issued under the plan to bring us back into compliance with the terms of the plan. We have agreed in the future to consider some form of non-stock compensation to Dr. Carter for his return of these securities.”
No details were provided about the number of shares returned or what type of non-stock compensation — presumably cash, rather than year-end fruitcakes—will be provided.
Hemispherx’s lead product is Alferon N Injection, an Interferon alfa-n3 (human leukocyte derived) injectable to treat intralesional, refractory or recurring external condylomata acuminata—genital warts—in patients 18 years or older.
The company is also focused on Ampligen, which is being evaluated for a number of chronic diseases and viral disorders.
In October, the company announced that its European subsidiary, Hemispherx Biopharma Europe NV/SA, received a positive opinion from the Committee on Medical Products (COMP) for its Orphan Medicinal Product Application for Alferon N Injection to treat Middle East Respiratory Syndrome (MERS).
The COMP indicated that the product met the safety criteria for the indication, and that there were currently no other satisfactory treatment for MERS.
MERS was originally identified in Saudi Arabia in 2012. It is caused by a coronavirus known as the Middle East Respiratory Syndrome Coronavirus (MERS-CoV). The disease causes severe acute respiratory illness with fever, cough, and shortness of breath, which can lead to death. Additional possible symptoms include pneumonia, and gastrointestinal symptoms like diarrhea, nausea and vomiting, and kidney failure. MERS has a fatality rate of 38 percent, with a mean time from onset to death of 12 days.
“Alferon has great experimental potential as an early onset therapeutic for this dread disease,” said Tom Equels, Hemispherx’s president, in a statement. “Hemispherx is dedicated to making Alferon available for MERS clinical trials, emergency uses and early access programs consistent with all applicable laws.”
On Nov. 17, the company provided its nine-month financial results. It reported a net loss, including non-cash effects, of approximately $12,093,000, or about $(0.05) per share compared to a net loss of $12,994,000 (or $(0.07) per share) from the same period in 2014.
Hemispherx Biopharma has been on a pretty steady decline this year. Shares traded on Feb. 15 for $0.30, dropped to $0.08 on April 2, and rose to $0.27 on May 12. Shares than dropped again to $0.07 on Dec. 18. They are currently trading for $0.08.
