Soligenix second quarter revenues decrease to $406,000

Soligenix, Inc.Aug 12 2011

Soligenix, Inc. (OTCBB: SNGX) (Soligenix or the Company), a late-stage biopharmaceutical company, announced today its financial results for the second quarter of 2011.

Soligenix’s revenues for the second quarter of 2011 were approximately $406,000 as compared to $445,000 for the second quarter of 2010. The slight decrease in revenues was primarily a result of completion in April 2011 of the initial year of its FDA Orphan Products grant for the confirmatory Phase 3 clinical trial of orBec® in acute gastrointestinal Graft-versus-Host disease (GI GVHD).

Soligenix’s net loss for the second quarter of 2011 was approximately $1,931,000, or $(0.01) per share, as compared to $1,577,000, or $(0.01) per share for the second quarter of 2010. This higher net loss was related to increased R&D costs in connection with the conduct of the confirmatory Phase 3 clinical trial of orBec® in GI GVHD.

Research and development expenses for the second quarter of 2011 were approximately $1,307,000, as compared to $1,071,000 for the second quarter of 2010. General and administrative expenses for the second quarter of 2011 were approximately $450,000, compared to approximately $545,000 for the second quarter of 2010.

As of June 30, 2011, the Company’s cash position was approximately $4,157,000 with working capital of $3,166,000, which increased on July 28, 2011 when the Company expanded its partnership with Sigma-Tau Pharmaceuticals, Inc. (Sigma-Tau) in Europe and received an up-front payment of $5,000,000.  

“The summer of 2011 has been eventful for us,” stated Christopher J. Schaber, PhD, President and Chief Executive Officer of Soligenix. “The expanded partnership with Sigma-Tau into Europe brought $5 million in non-dilutive financing into the Company and also establishes a mechanism to effectively launch and market orBec® in the second major world market.  We also added significant experience to our Board of Directors through the addition of Jerome Zeldis of Celgene and Keith Brownlie formerly of Ernst & Young.  We remain committed to our goal of having orBec® become the first FDA-approved therapy to treat GI GVHD, with our confirmatory Phase 3 clinical trial expected to complete this year.”  

Soligenix’s Recent Highlights and Accomplishments:

• On July 28, 2011, Soligenix announced the expansion of its partnership with Sigma-Tau into the European territory.  As part of the deal, Soligenix received a $5 million upfront payment and a 40% royalty on net sales (inclusive of drug supply by Soligenix) in Europe along with $11 million in potential milestone payments.
• On June 27, 2011, Soligenix announced the appointment of Jerome Zeldis, MD, PhD, Chief Executive Officer of Celgene Global Health and Chief Medical Officer of Celgene Corporation, and Keith Brownlie, CPA, retired partner with Ernst & Young, to its Board of Directors.
• On June 2, 2011, Soligenix announced the appointment of Joseph Warusz as Vice President of Administration and Controller.