RESEARCH TRIANGLE PARK, N.C., May 15, 2015 (GLOBE NEWSWIRE) -- Drug discovery and development company SCYNEXIS, Inc. (Nasdaq:SCYX) today reported financial results for the first quarter of 2015.
“We are in a strong financial position following the successful completion of our follow-on public offering in April 2015, which resulted in net proceeds of $37.8 million,” said Marco Taglietti, SCYNEXIS’ Chief Executive Officer. “These cash resources are projected to allow us to progress our lead product candidate, SCY-078, through several key milestones, bringing us closer to providing a new treatment option to patients with life-threatening invasive fungal infections.”
Recent Developments
- SCYNEXIS successfully completed a follow-on public offering in April 2015, selling approximately 5.4 million shares of our common stock at a public offering price of $7.70 per share, providing net proceeds of approximately $37.8 million after underwriting discounts and commissions and estimated offering expenses;
- David Angulo, M.D., has accepted an offer to join SCYNEXIS as Chief Medical Officer, effective June 1, 2015; and
- Charles F. Osborne, Jr., our current Chief Financial Officer, is resigning from SCYNEXIS effective June 30, 2015, and we have commenced a search for a new chief financial officer.
SCY-078 Update
- Implemented protocol amendments to our Phase 2 study of oral SCY-078 to facilitate patient enrollment;
- Top line results of our Phase 2 study are expected in the first half of 2016 as planned; and
- IND-enabling toxicology studies are being completed in support of the IND for the Phase 1 Program of an IV formulation of SCY-078 which is planned to begin in the second half of 2015.
First Quarter 2015 Financial Results
SCYNEXIS reported a net loss of $6.4 million for the first quarter of 2015, compared to net income of $0.4 million for the first quarter of 2014. The net loss in the first quarter of 2015 was primarily due to costs associated with the development of SCY-078 and public company operating expenses. The net income for the first quarter of 2014 was primarily due to a gain of $2.8 million from a derivative fair value adjustment, largely offset by an operating loss of $1.8 million. Diluted net loss attributable to common stockholders for the first quarter of 2015 was $6.4 million, or $0.75 per diluted common share. This compares to diluted net loss attributable to common stockholders for the first quarter of 2014 of $1.2 million, or $6.57 per diluted common share.1
Research and development expenses increased to $4.2 million in the first quarter of 2015, compared to $1.3 million in the first quarter of 2014. The increase of $2.9 million was primarily due to increased costs associated with the SCY-078 Phase 2 clinical trial and the preclinical development of intravenous SCY-078, as well as increased employee compensation costs.
Cash and cash equivalents totaled $27.6 million as of March 31, 2015.
About SCYNEXIS, Inc.
SCYNEXIS is a pharmaceutical company committed to the discovery, development and commercialization of novel anti-infectives to address significant unmet therapeutic needs. We are developing our lead product candidate, SCY-078, as an oral and intravenous (IV) drug for the treatment of serious and life-threatening invasive fungal infections in humans. For more information, visit www.scynexis.com.
Forward Looking Statement
Statements contained in this press release regarding matters that are not historical facts, including those statements regarding any future performance of SCYNEXIS’s product candidates, the potential of SCY-078 to treat invasive fungal infections, the therapeutic and commercial potential of SCY-078, and the anticipated timing and therapeutic and commercial potential of the product candidates of SCYNEXIS are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Additional risks related to SCYNEXIS are described more fully in SCYNEXIS’s filings with the Securities and Exchange Commission, including without limitation its most recent Annual Report on Form 10-K and other documents subsequently filed with or furnished to the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made. SCYNEXIS undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
1 The issuance of common stock and the conversion of our outstanding shares of preferred stock during our initial public offering in May 2014 caused a significant increase in common shares outstanding and has impacted the comparability of our net loss per share calculations between first quarter of 2015 and first quarter of 2014 periods.
| SCYNEXIS, INC. | ||
| UNAUDITED CONDENSED STATEMENTS OF OPERATIONS | ||
| (in thousands, except share and per share data) | ||
| Three months ended March 31, | ||
| 2015 | 2014 | |
| Revenue — related party | $ 987 | $ 1,822 |
| Revenue | 2,310 | 2,883 |
| Total revenue | 3,297 | 4,705 |
| Cost of revenue | 3,231 | 3,960 |
| Gross profit | 66 | 745 |
| Operating expenses: | ||
| Research and development | 4,218 | 1,320 |
| Selling, general and administrative | 2,233 | 1,206 |
| Total operating expenses | 6,451 | 2,526 |
| Loss from operations | (6,385) | (1,781) |
| Other (income) expense: | ||
| Amortization of deferred financing costs and debt discount | — | 536 |
| Interest (income) expense | (1) | 44 |
| Derivative fair value adjustment | — | (2,783) |
| Other expense | — | 10 |
| Total other (income) expense: | (1) | (2,193) |
| Net (loss) income | $ (6,384) | $ 412 |
| Deemed dividend for beneficial conversion feature on Series D-2 preferred stock | — | (909) |
| Deemed dividend for antidilution adjustments to convertible preferred stock | — | (214) |
| Accretion of convertible preferred stock | — | (510) |
| Net loss attributable to common stockholders - basic | $ (6,384) | $ (1,221) |
| Derivative fair value adjustment | — | (2,783) |
| Net loss attributable to common stockholders - diluted | (6,384) | (4,004) |
| Net loss per share attributable to common stockholders: | ||
| Basic | $ (0.75) | $ (3.65) |
| Diluted | $ (0.75) | $ (6.57) |
| Weighted average common shares outstanding: | ||
| Basic | 8,516,467 | 334,086 |
| Diluted | 8,516,467 | 609,074 |
| SCYNEXIS, INC. | ||
| BALANCE SHEET DATA | ||
| (in thousands) | ||
| March 31, 2015 (Unaudited) | December 31, 2014 | |
| Cash and cash equivalents | $ 27,620 | $ 32,243 |
| Total current assets | 29,830 | 34,736 |
| Total assets | 34,857 | 39,672 |
| Total current liabilities | 5,132 | 3,801 |
| Total liabilities | 7,419 | 6,241 |
| Total stockholders’ equity | 27,438 | 33,431 |
| Total liabilities and stockholders’ equity | 34,857 | 39,672 |
CONTACT: Media Relations Heather Savelle MacDougall Biomedical Communications Tel: 781-235-3060 hsavelle@macbiocom.com Investor Relations Jillian Connell The Trout Group LLC Tel: 646.378.2956 jconnell@troutgroup.com SCYNEXIS, Inc. Chuck Osborne Chief Financial Officer Tel: 919-544-8600 E-mail: chuck.osborne@scynexis.com
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