SAN FRANCISCO, Nov. 13, 2014 /PRNewswire/ -- Kindred Biosciences, Inc. (NASDAQ: KIN) today announced financial results for the quarter ended September 30, 2014.
KindredBio today announced its third quarter financial results and provided updates on its programs.
"We are pleased to announce today the approval of the first major portion of the NADA for AtoKin, and we look forward to additional milestones as we continue to advance our pipeline," stated Richard Chin, M.D., President and Chief Executive Officer of KindredBio. "The KindredBio team continues to execute with excellence, as we move toward multiple study results in 2015."
Development Updates
KindredBio has received approval from the FDA for AtoKin's New Animal Drug Application Phase 1 CMC Technical Section.
KindredBio has initiated several additional programs, including SentiKin for osteoarthritis in dogs, SentiKin for dental extraction, and KIND-011 for metabolic syndrome in horses.
AtoKin and SentiKin programs continue to enroll rapidly and remain on track for completion in 2015.
Other programs, including programs for inappetance in cats, postoperative pain in cats, KIND-012 for fever in horses, and feline erythropoeitin, continue to advance as previously planned.
Third Quarter and Nine Month Financial Results
Research and development expenses for the three and nine months ended September 30, 2014, were $3.8 million and $13.9 million, respectively, including stock-based compensation expense of $376,000 and $1.1 million, respectively. This compares to research and development expenses of $1.0 million and $1.4 million for the three and nine months ended September 30, 2013, respectively. Research and development expenses were higher due to a significant increase in activity related primarily to the SentiKin, CereKin and AtoKin programs, as well as increase in headcount and related expenses.
General and administrative expenses for the three and nine months ended September 30, 2014, were $2.3 million and $6.5 million, respectively, including stock-based compensation expense of $889,000 and $2.5 million, respectively. This compares to general and administrative expenses of $259,000 and $438,000 for the three and nine months ended September 30, 2013, respectively. General and administrative expenses related primarily to salaries and related expenses, professional and consulting fees for legal, accounting and tax services, costs of being a public company, rent and other facilities costs, and other general business services.
For the three months ended September 30, 2014, the Company incurred a net loss of $6.1 million, or $0.31 per basic and diluted share compared to a net loss for the three months ended September 30, 2013, of $1.2 million, or $0.40 per basic and diluted share. For the nine months ended September 30, 2014, the Company incurred a net loss of $20.3 million, or $1.10 per basic and diluted share compared to a net loss for the nine months ended September 30, 2013, of $1.8 million, or $0.61 per basic and diluted share.
The Company had cash, cash equivalents and short-term investments of $106.4 million at September 30, 2014. Net cash used in operating activities for the nine months ended September 30, 2014 was $16.8 million. For the full year 2014 the Company, reiterating previous guidance, expects operating expenses to be in the range of $25 million to $35 million, excluding the impact of stock-based compensation expense and the impact of acquisitions. The Company expects stock-based compensation expense for 2014 to be approximately $4.5 million.
Research and development expense is anticipated to increase for the foreseeable future as the Company continues to increase headcount, commence pivotal studies and further develop its small molecule compounds and biologics development programs. Due to the inherently unpredictable nature of its development, the Company cannot reasonably estimate or predict the nature, specific timing or estimated costs of the efforts that will be necessary to complete the development of its product candidates.
The Company expects general and administrative expense to increase in the following quarters as it executes plans to commercialize its product candidates, builds its corporate infrastructure and incurs costs associated with being a public company.
Webcast and Conference Call
KindredBio will host a conference call today at 4:30 p.m. Eastern Time. Interested parties may access the call by dialing toll-free (855) 433-0927 from the US, or (484) 756-4262 internationally, and using conference ID 32324288. The call will also be webcast at http://www.media-server.com/m/p/h47a5uue.
A replay will also be available at that link for 30 days.
About Kindred Biosciences
Kindred Biosciences is a development stage biopharmaceutical company focused on saving and improving the lives of pets.
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