MENLO PARK, Calif.,
Sept. 14, 2015 /PRNewswire/
-- BioPharmX Corporation (NYSE MKT: BPMX), a Silicon
Valley-based specialty pharmaceutical company, today announced its
financial results for the fiscal quarter ended July 31, 2015. An earnings conference call is
scheduled for today at 4:30 p.m. Eastern
Time.
Second Quarter and Recent Highlights
- Uplisted to the NYSE MKT on June 25,
2015, concurrent with a public common stock offering of
$10 million of gross proceeds.
- VI2OLET® iodine distribution now reaches over 4,500
stores, including CVS/Pharmacy, the Vitamin Shoppe and Harris Teeter, a wholly owned subsidiary of The
Kroger Co.
- Appointed Greg Kitchener, a
senior finance professional from the healthcare and high technology
industries, as chief financial officer
"This quarter marked a key milestone for the Company with an
uplisting to the NYSE MKT, in conjunction with raising
approximately $10 million of gross
proceeds in a public common stock offering," said Jim Pekarsky, chief executive officer and
co-founder of BioPharmX Corporation. "Proceeds from the
public offering will be used to continue our marketing outreach to
promote awareness at various online and storefront retailers for
Violet iodine, a daily supplement that helps promote breast health
and alleviate symptoms associated with fibrocystic breast condition
(FBC), and advance our pre-clinical preparation for IND submission
to the FDA for our uniquely formulated topical acne drug."
Management Overview and Recent Business Developments
Beyond its first commercially available product, Violet iodine,
BioPharmX Corporation is also pursuing the development of novel
products targeting large dermatologic markets. These
include:
BPX01
BPX01, the Company's topical acne drug, will deliver minocycline
in a directly applied, gel-like treatment that effectively treats
acne, but with fewer expected side effects than its oral
counterpart. The Company expects to file an IND with the FDA for
BPX01 and currently anticipates Phase 2 (505)(b) clinical trials to
commence in early 2016. In the coming months the Company plans to
release key data on its acne product that it anticipates presenting
at various dermatology events and conferences.
BPX02
BPX02 is still in research mode as the Company continues to make
progress in the development of a prescription drug formulating
biologics materials for a dermatology application.
BPX03 and Violet Iodine
BPX03, the Company's prescription strength molecular iodine
product that complements its Violet iodine product, is in
development and the company plans to complete a multi-site IRB
study over the next 12 months in preparation for Phase 3
trials. Phases 1 and 2 of these trials have already been
completed. Both the Violet iodine supplement and BPX03 are uniquely
formulated for the treatment of fibrocystic breast condition as
well as overall breast health.
Financial Highlights for the Quarter Ended July 31, 2015
- Cash and cash equivalents totaled $7.4
million, compared to $1.3
million on January 31,
2015. Cash and cash equivalents increased due to the public
offering of $10 million. Net
proceeds after expenses and underwriter fees totaled $7.8 million. In addition, BioPharmX
Corporation expects to receive $2
million from the closing of a previously announced private
placement with Korea Investment Partners Overseas Expansion
Platform Fund, an existing shareholder.
- Net loss available for common stockholders for the second
quarter was $(3.7) million, or
$(0.24) per share, compared to a net
loss of $(1.8) million, or
$(0.18) per share, during the quarter
ended July 31, 2014.
- Excluding stock-based compensation expense and amortization of
purchased intangible assets, non-GAAP net loss available for common
stockholders for the second quarter of 2015 was $(3.4) million, or $(0.22) per share, compared with a net loss of
$(1.6) million, or $(0.16) per share, for the second quarter of
2014.
- Total operating expenses were $3.6
million, compared to $1.8
million during the quarter ended July
31, 2014 as a result of increased expenditures for the
Company's acne drug pre-clinical preparations and continued
marketing and commercialization efforts for Violet iodine.
Accessing BioPharmX Corporation's Conference Call
Individuals interested in participating in the conference call
should dial (866) 652-5200 (U.S.) or (412) 317-6060
(international). Participants should ask to join the
BioPharmX Corporation call. A live webcast of the conference
call is also available by visiting
http://biopharmx.investorroom.com/events. A replay of the
webcast will be available shortly following the call and will
remain available for at least 90 days.
About BioPharmX Corporation
BioPharmX Corporation (NYSE MKT: BPMX) is a Silicon Valley-based
specialty pharmaceutical company, which seeks to provide products
through proprietary platform technologies for prescription,
over-the-counter ("OTC"), and supplement applications in the health
and wellness markets, including women's health and
dermatology. To learn more about BioPharmX, visit
www.BioPharmX.com.
Use of Non-GAAP Measures
BioPharmX Corporation has supplemented its reported GAAP
financial information with non-GAAP measures, non-GAAP net loss
available to common shareholders and non-GAAP net loss available to
common shareholders per share, that do not include a one-time
charge related to the modification of certain warrants, stock-based
compensation and the amortization of purchased intangible
assets. The presentation of this additional information is
not meant to be considered in isolation or as a substitute for
results prepared in accordance with GAAP. Management uses the
non-GAAP information internally to evaluate its ongoing business,
operational performance and cash requirements and believes these
non-GAAP measures are useful to investors as they provide the same
basis for evaluating BioPharmX Corporation's performance as applied
by management.
BioPharmX has provided a reconciliation of each non-GAAP
financial measure to the most directly comparable GAAP financial
measure. These non-GAAP measures may be different from
non-GAAP measures used by other companies, including peer
companies, and therefore comparability may be limited. In
addition, these non-GAAP measures are not based on any
comprehensive set of accounting rules or principles.
BioPharmX Corporation believes that non-GAAP measures have
limitations in that they do not reflect all of the amounts
associated with its results of operations as determined in
accordance with GAAP and that these measures should be considered
in addition to, not as a substitute for or in isolation from,
measures prepared in accordance with GAAP. BioPharmX encourages
investors and others to review the company's financial information
in its entirety and not rely on a single financial measure.
In the first quarter of fiscal year 2016, BioPharmX Corporation
amended certain warrants resulting in a one-time charge. This
amount is excluded from its non-GAAP net loss available to common
shareholders and non-GAAP net loss available to common shareholders
per share because it is not reflective of ongoing operating results
in the period incurred.
Stock-based compensation expenses represent non-cash charges
related to equity awards granted by BioPharmX Corporation. Although
these are recurring charges to BioPharmX Corporation's operations,
management believes the measurement of these amounts can vary
considerably from period to period and depend substantially on
factors that are not a direct consequence of operating performance
that is within management's control. Thus, management believes that
excluding these charges from non-GAAP net loss available to common
shareholders and non-GAAP net loss available to common shareholders
per share facilitates comparisons of BioPharmX Corporation's
operational performance in different periods, as well as with
similarly determined non-GAAP financial measures of comparable
companies.
Amortization of purchased intangible assets results from the
purchase of a license related to molecular iodine technology.
These amounts are excluded from non-GAAP net loss available to
common shareholders and non-GAAP net loss available to common
shareholders per share because it is not reflective of ongoing
operating results in the period incurred.
Forward-Looking Statements
The information in this press release contains forward-looking
statements and information within the meaning of Section 27A of the
Securities Act of 1933, as amended, or the Securities Act, and
Section 21E of the Securities Exchange Act of 1934, as amended, or
the Exchange Act, which are subject to the "safe harbor" created by
those section. This press release contains
forward-looking statements about the company's expectations, plans,
intentions, and strategies, including, but not limited to,
statements regarding, including with respect to: the success of the
commercialization of VI2OLET® iodine, the effectiveness
of BPX01, the timing with respect to filing an IND and clinical
trials for BPX01, the release of key data for BPX01, the release of
key data and the successful completion of multi-site IRB studies
for BPX03 and the successful completion of the private placement
with Korea Investment Partners Overseas Expansion Platform Fund.
These forward-looking statements may be identified by words such as
"plan", "expect," "anticipate," "believe," or similar expressions
that are intended to identify such forward-looking statements.
These forward-looking statements involve risks and
uncertainties, as well as assumptions, which, if they do not fully
materialize or prove incorrect, could cause our results to differ
materially from those expressed or implied by such forward-looking
statements. The risks and uncertainties include those described in
the company's filings with the Securities and Exchange Commission.
Given these risks and uncertainties, you are cautioned not to
place undue reliance on such forward-looking statements. The
forward-looking statements included in this news release are made
only as of the date hereof and the company undertakes no obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as may be required under applicable securities law.
BioPharmX, Violet, and VI2OLET are registered
trademarks of BioPharmX, Inc.
BIOPHARMX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
(in thousands,
except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
July
31,
|
|
July
31,
|
|
|
|
|
2015
|
2014
|
|
2015
|
2014
|
|
|
|
|
|
|
|
|
|
Revenues,
net
|
|
$ 5
|
$
-
|
|
$ 9
|
$ -
|
Cost of goods
sold
|
10
|
-
|
|
19
|
-
|
Gross
deficit
|
|
(5)
|
-
|
|
(10)
|
-
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
Research and
development
|
1,141
|
623
|
|
2,217
|
1,163
|
|
Sales and
marketing
|
1,307
|
435
|
|
2,388
|
649
|
|
General and
administrative
|
1,118
|
732
|
|
2,144
|
1,263
|
|
|
Total operating
expenses
|
3,566
|
1,790
|
|
6,749
|
3,075
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(3,571)
|
(1,790)
|
|
(6,759)
|
(3,075)
|
|
Other income
(expense)
|
-
|
14
|
|
(436)
|
(36)
|
|
|
|
|
|
|
|
|
|
Net and
comprehensive loss
|
(3,571)
|
(1,776)
|
|
(7,195)
|
(3,111)
|
|
|
|
|
|
|
|
|
|
Accretion on Series A
convertible redeemable preferred stock
|
(79)
|
(27)
|
|
(202)
|
(27)
|
Deemed dividend on
Series A convertible redeemable preferred stock
|
(85)
|
(45)
|
|
(201)
|
(45)
|
Net loss available
to common stockholders
|
$(3,735)
|
$ (1,848)
|
|
$(7,598)
|
$(3,183)
|
|
|
|
|
|
|
|
|
|
Net loss per
share
|
|
|
|
|
|
|
Basic and
diluted
|
($0.24)
|
($0.18)
|
|
($0.56)
|
($0.32)
|
Shares used in
computing net loss per share
|
|
|
|
|
|
|
Basic and
diluted
|
15,443
|
10,551
|
|
13,616
|
9,961
|
BIOPHARMX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
July
31,
|
January
31,
|
|
|
|
|
2015
|
2015
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$ 7,388
|
$ 1,305
|
|
|
Inventories
|
364
|
160
|
|
|
Prepaid expenses and
other current assets
|
447
|
240
|
|
|
|
Total current
assets
|
8,199
|
1,705
|
|
|
|
|
|
|
|
Property and
equipment, net
|
226
|
234
|
|
Intangible assets,
net
|
134
|
149
|
|
Other
assets
|
85
|
85
|
|
|
|
Total
assets
|
$ 8,644
|
$ 2,173
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity (Deficit)
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$ 3,329
|
$ 1,152
|
|
|
Accrued expenses and
other current liabilities
|
976
|
405
|
|
|
|
Total current
liabilities
|
4,305
|
1,557
|
|
|
|
|
|
|
|
Series A convertible
redeemable preferred stock
|
-
|
6,823
|
|
|
|
|
|
|
|
Stockholders' equity
(deficit)
|
4,339
|
(6,207)
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity (deficit)
|
$ 8,644
|
$ 2,173
|
BIOPHARMX
CORPORATION
|
Reconciliation of
GAAP to Non-GAAP Net Loss and Net Loss Per Share Available to
Common Stockholders
|
(in thousands,
except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
July
31,
|
|
July
31,
|
|
|
|
|
2015
|
2014
|
|
2015
|
2014
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
available to common stockholders
|
$(3,735)
|
$ (1,848)
|
|
$(7,598)
|
$(3,183)
|
|
|
|
|
|
|
|
|
|
|
|
Expense related to
modification of warrants
|
-
|
-
|
|
436
|
-
|
|
|
Amortization of
purchased intangible assets
|
8
|
-
|
|
15
|
-
|
|
|
Stock-based
compensation expense
|
|
|
|
|
|
|
|
-
|
Research and
development
|
39
|
43
|
|
125
|
77
|
|
|
-
|
Sales and
marketing
|
83
|
29
|
|
207
|
45
|
|
|
-
|
General and
administrative
|
202
|
139
|
|
292
|
204
|
|
|
|
Total stock-based
compensation expense
|
324
|
211
|
|
624
|
326
|
|
|
Total reconciling
items
|
332
|
211
|
|
1,075
|
326
|
|
Non-GAAP net loss
available to common stockholders
|
$(3,403)
|
$ (1,637)
|
|
$(6,523)
|
$(2,857)
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
available to common stockholders per share
|
$ (0.24)
|
$ (0.18)
|
|
$ (0.56)
|
$ (0.32)
|
|
|
Reconciling
items
|
|
|
|
|
|
|
|
-
|
Expense related to
modification of warrants
|
-
|
-
|
|
0.03
|
-
|
|
|
-
|
Amortization of
purchased intangible assets
|
-
|
-
|
|
-
|
-
|
|
|
-
|
Stock-based
compensation expense
|
0.02
|
0.02
|
|
0.05
|
0.03
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss
per share: basic and diluted
|
$ (0.22)
|
$ (0.16)
|
|
$ (0.48)
|
$ (0.29)
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP net loss per share
|
|
|
|
|
|
|
|
Basic and
diluted
|
15,443
|
10,551
|
|
13,616
|
9,961
|
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SOURCE BioPharmX Corporation