Dipexium reports net loss of $4.0 million for second quarter 2015

Aug 13 2015

Dipexium Pharmaceuticals, Inc. (Nasdaq: DPRX), a late-stage pharmaceutical company focused on the development and commercialization of Locilex® (pexiganan cream 0.8%), a novel, broad-spectrum, topical antibiotic peptide, today reported financial results for the quarter ended June 30, 2015.

"We made significant progress in all areas of our business in the second quarter," said David P. Luci, President and CEO of Dipexium Pharmaceuticals. "Most notably, we received guidance from the European Medicines Agency regarding Locilex's European clinical and regulatory pathway. In addition, we completed our secondary public offering of common stock in June 2015, raising $19.7 million in net proceeds. The additional capital will be available for general corporate purposes, including use to conduct a marketing launch of Locilex in the U.S., and potentially in the European Union, upon successful completion of the OneStep studies and related regulatory approvals."

Mr. Luci continued, "In terms of Locilex manufacturing, we scaled up our active pharmaceutical ingredient lots and are in the process of scaling up our formulated product supply. These steps have been taken to make the product supply chain more efficient during the commercialization period and may reduce the product's anticipated cost of goods. We also completed a Locilex microbiology study in pathogens resistant to other topical antimicrobials, and we look forward to presenting these data at the ICAAC/ICC 2015 meeting in September."

Financial Results for the Second Quarter of 2015

For the three months ended June 30, 2015, Dipexium reported a net loss of $4.0 million, compared to a net loss of $3.9 million for the three months ended June 30, 2014, an increase of $0.1 million. The change was primarily due to a $0.4 million increase in professional and administrative costs and stock-based compensation expenses, partially offset by a decrease in research and development expenses of $0.3 million due to the higher manufacturing expenses in 2014 related to the commencement of clinical trials.

For the six months ended June 30, 2015, Dipexium reported a net loss of $8.2 million, compared to a net loss of $6.5 million for the six months ended June 30, 2014, an increase of $1.7 million. This change was primarily due to a $2.1 million increase in general and administrative expenses, offset by a $0.4 million decrease in research and development expenses. The increase in general and administrative expenses is primarily attributable to an increase of $1.7 million for stock-based compensation expenses and a $0.4 million increase in professional and administrative expenses. Research and development expenses decreased slightly due to manufacturing and other expenses in 2014 related to the commencement of clinical trial work.

Net cash used in operating activities for the six months ended June 30, 2015 was $6.2 million. At June 30, 2015, the Company had cash and short-term investments of $40.7 million, compared to $27.0 million at December 31, 2014. The increase in cash was due to the Company's common stock offering in June 2015, which provided net proceeds of $19.7 million. The Company's cash balance is currently anticipated to fund operations through 2017.

SOURCE Dipexium Pharmaceuticals, Inc.