CombinatoRx's Net Loss Widens

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On March 4, 2009, CombinatoRx(CRXX) reported that its Q4 FY08 net loss widened, hurt by a restructuring charge of $4.64 million and a stock-based compensation expense of $1.00 million. Net loss was $15.23 million or $0.43 per share compared to $14.22 million or $0.42 per share in Q4 FY07. The most recent consensus estimate was a loss of $0.45 per share.

Revenue grew 29.5% to $3.90 million from $3.02 million a year ago, attributable to higher revenues from the company's business segments. For example, Collaborations revenue surged 28.8% to $3.47 million from $2.70 million, while Government contracts and grants rose 35.4% to $432,000 from $319,000 in the prior year's quarter. Research and development (R&D) expenses dropped 20.8% to $11.15 million from $14.08 million, and general and administrative expenses dropped 27.2% to $3.04 million from $4.17 million a year ago.

The company provided clinical translational evidence for its dissociated glucocorticoid candidate, Synavive (CRx-102), with the results from COMET-1 (CRx-102 Osteoarthritis Multi-center Evaluation Trial), the company's Phase 2 clinical trial designed to evaluate the safety and efficacy of Synavive (CRx-102) in subjects with symptomatic knee osteoarthritis. Additionally, the company demonstrated that beta-2 adrenergic receptor agonists and adenosine A2A agonists exert potent synergistic and selective pro-apoptotic activity in multiple myeloma and other B-cell malignancy tumor cell lines and patient samples and with drugs used as standard therapy and emerging new classes in multiple myeloma.

Net revenues for FY08 decreased 5.4% to $14.13 million from $14.94 million in the previous year. Meanwhile, net loss surged to $65.13 million or $1.87 per share from $53.34 million or $1.78 per share, on higher R&D expenses and restructuring charges.

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