Keryx Biopharmaceuticals, Inc. (Nasdaq: KERX), a biopharmaceutical company focused on the acquisition, development and commercialization of medically important pharmaceutical products for the treatment of life-threatening diseases, including cancer and renal disease (the "Company"), today announced its results for the fourth quarter and year ended December 31, 2009.
At December 31, 2009, the Company had cash, cash equivalents, interest receivable, and investment securities of $35.9 million, as compared to $22.7 million at December 31, 2008.
The net loss for the fourth quarter ended December 31, 2009 was $4.7 million, or $0.08 per share, compared to a net loss of $3.8 million, or $0.08 per share, for the comparable quarter in 2008, representing an increase in net loss of $0.9 million. The increase in net loss was primarily attributable to a $2.2 million increase in other research and development expenses, of which $1.5 million relates to a one-time accrual for a terminated early-stage pipeline product candidate, partially offset by a $1.5 million decrease in non-cash compensation expense ($0.5 million in the three months ended December 31, 2009 as compared to $2.0 million in the comparable period in 2008) related to equity incentive grants.
The net income for the year ended December 31, 2009, was $10.5 million, or $0.21 per share, compared to a net loss of $52.9 million, or $1.18 per share, for the year ended December 31, 2008. The change in net income (loss) was primarily attributable to a $26.9 million decrease in research and development expenses related to the cessation of the development of Sulonex in March 2008, a $20.4 million increase in license revenue related to an amendment to the September 2007 sublicense agreement with Japan Tobacco Inc. and Torii Pharmaceutical Co., Ltd. (JT/Torii) which eliminated the Company's significant ongoing obligations included in the original agreement ($18.0 million) and a $3.0 million milestone payment from JT/Torii earned in the first quarter of 2009, a $5.1 million decrease in research and development expenses related to KRX-0401 (perifosine), a $3.6 million decrease in non-cash compensation expense related to equity incentive grants, and a $3.6 million increase in other revenue primarily related to the settlement of a dispute with the former licensor of Sulonex (sulodexide) in July 2009.
Commenting on the quarter, Ron Bentsur, the Company's Chief Executive Officer, said, "Since the end of the third quarter, Keryx has aggressively progressed its clinical-stage pipeline, bringing two compounds into Phase 3 for three indications, all supported by SPA agreements and sufficient capital to execute our business plan. We remain strategically focused and cash conscious as we strive to meet the goals we have set for the Company."
On Thursday, March 25, 2010, at 8:30am EDT, the Company will host an investor conference call to provide a brief financial overview of the Company's fourth quarter and year-end 2009 financial results and outlook for 2010.
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