Full Press Release Details
A.P. Pharma Announces First Quarter 2012 Financial Results and Recent Corporate Progress
REDWOOD CITY, Calif. May 10, 2012 A.P. Pharma, Inc. (OTCBB: APPA.OB), a specialty pharmaceutical company, today reported financial
results for its first quarter ended March 31, 2012 and highlighted recent corporate progress.
In the first quarter of 2012, we
completed several key studies to support the resubmission of our New Drug Application for APF530, which is expected to occur in mid-2012, said John B. Whelan, A.P. Pharma s president and chief executive officer. If approved, we
believe that APF530 will provide an important treatment option for cancer patients and physicians in preventing chemotherapy-induced nausea and vomiting.
Recent Accomplishments
Results of Operations
A.P. Pharma s net loss for the first quarter of 2012 was $4.9 million, or $0.02 per share, compared to a net loss of $1.4 million, or $0.04 per
share, for the first quarter of 2011. The net loss was higher in the current fiscal quarter primarily due to increased spending related to the planned NDA resubmission and higher personnel-related expenses, including stock compensation expense.
Additionally, the prior year quarter included contract revenue from an agreement with Merial Limited, which is no longer in effect.
and cash equivalents as of March 31, 2012 were $13.4 million, compared to $18.0 million at December 31, 2011. The $3.0 million of cash received through the issuance of convertible notes by the Company in May 2012 results in cash and cash
equivalents of $16.4 million as of March 31, 2012 on a pro forma basis. Net cash used in operating activities was $4.1 million for the quarter ended March 31, 2012. The Company believes that its current cash resources are sufficient to
fund its operations into 2013.
A.P. Pharma s lead product, APF530, is in development for the prevention of both acute-onset and delayed-onset chemotherapy-induced nausea and vomiting (CINV). APF530 contains the 5-HT3 antagonist,
granisetron, formulated in the Company s proprietary Biochronomer drug delivery system, which allows therapeutic drug levels to be maintained for five days with a single subcutaneous injection. Intravenous and oral formulations containing
granisetron are approved for the prevention of acute-onset CINV, but not delayed-onset CINV. Granisetron was selected because it is widely prescribed by physicians based on a well-established record of safety and efficacy.
specialty pharmaceutical company developing products using its proprietary Biochronomer polymer-based drug delivery technology. The Company s primary focus is on its lead product, APF530, for the prevention of CINV. A.P. Pharma received a
Complete Response Letter on the APF530 NDA and is targeting the resubmission of the NDA in mid-2012. The Company has additional research and development programs that utilize its bioerodible, injectable and implantable delivery systems. For further
information, please visit the Company s web site at www.appharma.com.
(financial tables follow)
Condensed Statements of Operations
(in thousands, except per share amounts)
| Three Months Ended March 31, | ||||||||
| 2012 | 2011 | |||||||
| Contract revenue | $ | $ | 395 | |||||
| Operating expenses: | ||||||||
| Research and development | 3,329 | 1,141 | ||||||
| General and administrative | 1,440 | 569 | ||||||
| Total operating expenses | 4,769 | 1,710 | ||||||
| Operating loss | (4,769 | ) | (1,315 | ) | ||||
| Interest expense, net | (61 | ) | (1 | ) | ||||
| Loss from continuing operations | (4,830 | ) | (1,316 | ) | ||||
| Loss from discontinued operations | (91 | ) | (103 | ) | ||||
| Net loss | $ | (4,921 | ) | $ | (1,419 | ) | ||
| Basic and diluted net loss per share: | ||||||||
| Loss from continuing operations | $ | (0.02 | ) | $ | (0.03 | ) | ||
| Net loss | $ | (0.02 | ) | $ | (0.04 | ) | ||
| Shares used to compute basic and diluted net loss per share | 200,046 | 39,869 |
Condensed Balance Sheets
| March 31, 2012 | December 31, 2011 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 13,444 | $ | 17,974 | ||||
| Prepaid expenses and other current assets | 306 | 266 | ||||||
| Total current assets | 13,750 | 18,240 | ||||||
| Property and equipment, net | 1,114 | 1,075 | ||||||
| Other long-term assets | 130 | 130 | ||||||
| Total assets | $ | 14,994 | $ | 19,445 | ||||
| Liabilities and Stockholders Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 890 | $ | 1,010 | ||||
| Accrued expenses | 1,155 | 1,498 | ||||||
| Accrued disposition costs | 1,173 | 1,082 | ||||||
| Convertible notes payable to related parties, net of discount | 143 | 103 | ||||||
| Total current liabilities | 3,361 | 3,693 | ||||||
| Total liabilities | 3,361 | 3,693 | ||||||
| Stockholders equity: | ||||||||
| Common stock | 2,002 | 2,002 | ||||||
| Additional paid-in capital | 174,791 | 173,989 | ||||||
| Accumulated deficit | (165,160 | ) | (160,239 | ) | ||||
| Total stockholders equity | 11,633 | 15,752 | ||||||
| Total liabilities and stockholders equity | $ | 14,994 | $ | 19,445 |
Forward-looking Statements
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties,
including uncertainties associated with capital resources and liquidity, timely development and regulatory approval of product candidates, satisfactory completion of clinical studies, progress in research and development programs, launch and
acceptance of new products and other risks and uncertainties identified in the Company s filings with the Securities and Exchange Commission. We caution investors that forward-looking statements reflect our analysis only on their stated date.
We do not intend to update them except as required by law.
Investor Relations Contact:
Mobile Phone: 917-282-3242
Email: mrice@lifesciadvisors.com
John B. Whelan, President, Chief Executive Officer and Chief Financial Officer
Office Phone: 650-366-2626