Intercept Pharmaceuticals, Inc. (NASDAQ: ICPT) (Intercept), a clinical stage biopharmaceutical company focused on the development and commercialization of novel bile acid therapeutics to treat chronic liver diseases, such as primary biliary cirrhosis, today reported financial results for the quarter and six months ended June 30, 2013 and announced presentations at an upcoming medical conference and upcoming investor conferences.
Second Quarter 2013 Financial Results
Results of Operations
Six Months Ended June 30, 2013
For the six months ended June 30, 2013, Intercept reported a net loss of $23.7 million, or $1.41 per share, compared to a net loss of $9.3 million, or $2.78 per share, for the six months ended June 30, 2012. The $14.4 million increase in net loss was primarily due to the increase in the non-cash charge related to the periodic revaluation of warrant liability of $10.2 million and the increase in non-cash stock compensation of $2.7 million.
Licensing revenue decreased by $707,000 to $811,000 for the six months ended June 30, 2013, compared to $1.5 million for the corresponding period of the prior year, because the up-front payment related to the Servier collaboration was fully amortized as of the third quarter of 2012, and therefore no amortized revenue related to this upfront payment was recognized in 2013.
Research and development expenses increased to $10.0 million for the six months ended June 30, 2013, from $8.1 million for the corresponding period of the prior year, primarily as a result of increased activities in Intercept's development program for its product candidate, obeticholic acid (OCA). The increase in R&D expense includes an increase of $1.3 million in non-cash stock-based compensation for the six months ended June 30, 2013 compared to the corresponding period of the prior year.
General and administrative expenses increased to $5.3 million for the six months ended June 30, 2013 from $2.0 million for the corresponding period of the prior year, primarily as a result of costs associated with operating as a public company. The increase in G&A includes an increase of $1.5 million in non-cash stock-based compensation compared to the corresponding period of the prior year.
Non-operating expenses increased by $10.0 million in the six months ended June 30, 2013 as compared to the corresponding period of the prior year, primarily due to an increase of $10.2 million in the non-cash charge related to the periodic revaluation of warrant liability. This increase was primarily attributable to the increased market price of Intercept's common stock in 2013. In connection with equity financings prior to its IPO, Intercept issued warrants that are classified as liabilities and are adjusted to fair value on a quarterly basis with the change in fair value being included in net loss. The amount included in net loss is a non-cash item as Intercept is not required to expend any cash to settle the warrant liability. The warrant liability is primarily affected by changes in Intercept's stock price during each financial reporting period, which causes the warrant liability to fluctuate as the market price of Intercept's stock fluctuates.
Quarter Ended June 30, 2013
Net loss attributable to common stockholders for the second quarter ended June 30, 2013 was $13.5 million, or $0.79 per share, compared to a net loss of $5.8 million, or $1.75 per share, for the same period in 2012. The $7.6 million increase in net loss is primarily due to the increase of $5.9 million in the non-cash charge related to the periodic revaluation of warrant liability, primarily caused by the increase in the market price of Intercept's common stock, and increased non-cash stock compensation expense of $1.5 million.
Cash Position
As of June 30, 2013, Intercept's cash, cash equivalents and investment securities available for sale totaled approximately $161.8 million, compared to $110.2 million at December 31, 2012. In June 2013, Intercept sold 1,989,500 shares of common stock at $33.01 per share in a public offering for net proceeds of $61.4 million, after deducting underwriting discounts and offering expenses. Based upon currently expected level of operating expenditures, Intercept believes that it will be able to fund its operations through early 2016. This estimate reflects the ongoing POISE trial and long-term safety extension of the POISE trial; nonclinical studies and clinical trials and consulting expenditures to support Intercept's planned regulatory submissions for OCA in PBC; anticipated pre-commercial activities for OCA in PBC; and IND-enabling studies of INT-767.
Symposium at Upcoming International Congress of Immunology
On the afternoon of August 25, 2013, Intercept will host a satellite symposium for physicians at the International Congress of Immunology being held in Milan, Italy from August 22-27, 2013. The satellite symposium will be moderated by Luciano Adorini, M.D., Intercept's Chief Scientific Officer, and focus on the genetics, pathogenesis and therapy of primary biliary cirrhosis.
Upcoming Investor Conferences
Intercept's Chief Executive Officer, Mark Pruzanski, M.D., will present at the following investor conferences in September:
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Morgan Stanley 2013 Global Healthcare Conference on September 9, 2013 at 2:25 p.m. Eastern Time at the Grand Hyatt hotel in New York City.
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Stifel Healthcare Conference 2013 on September 12, 2013 at 10:20 a.m. Eastern Time at the Four Seasons Hotel in Boston.
Understanding metabolic alterations and immune dysfunction in acute-on-chronic liver failure