CorMedix Inc. (“CorMedix”) (NYSE Amex: CRMD), a pharmaceutical company focused on developing and commercializing therapeutic products for the prevention and treatment of cardiorenal disease, today announced its financial results for the quarter ended March 31, 2011.
First Quarter 2011 Developments
Financial Results for the Three Months Ended March 31, 2011
- Appointed Dr. Mark A. Klausner as Chief Medical Officer;
- Announced interim results and clinical update for Phase II study of CRMD001 (a proprietary formulation of deferiprone);
The net loss for the quarter ended March 31, 2011 was $1.9 million, or ($0.17) per diluted share, compared to a net loss of $6.5 million, or ($6.06) per diluted share, for the quarter ended March 31, 2010. The decrease in net loss was primarily attributable to a decrease in research and development (“R&D”) expense of $1.5 million, as described below, and a decrease in interest expense of $3.1 million due to the conversion of all our convertible notes during the first quarter of 2010 in connection with our initial public offering (“IPO”) in March 2010.
R&D expense was $1.2 million for the three months ended March 31, 2011, a decrease of $1.5 million from $2.7 million for the three months ended March 31, 2010. The decrease was primarily attributable to a charge of $2.2 million during the first quarter of 2010 related to our issuance of 828,024 shares of our common stock valued at $3.125 per share to our licensors (of which 118,289 shares are being held in escrow) as a result of anti-dilution adjustments in connection with the conversion of our outstanding convertible debt to common stock upon the closing of the IPO, which anti-dilution provisions expired upon the closing of the IPO. There was no corresponding charge during the first quarter of 2011. The decrease was also a result of $0.2 million of stock-based compensation expense reversed during the first quarter of 2011, which was related to the forfeitures of unvested stock options by our former Chief Medical Officer (“CMO”) in accordance with the terms of his employment agreement upon the expiration of his employment term in February 2011. The decrease was partially offset by an increase of $0.1 million in stock-based compensation expense during the first quarter of 2011 compared to the first quarter of 2010 primarily attributed to the portion of stock options granted to our Chief Executive Officer (“CEO”) in connection with our IPO in March 2010 and the stock options granted to our new CMO in February 2011, as well as increased clinical, clinical research organization, manufacturing and regulatory expenses related to our Phase II clinical trial of CRMD001 that began in June 2010, higher manufacturing, regulatory and clinical research organization costs related to the development of CRMD003 and higher personnel costs as a result of hiring two employees in the areas of clinical operations and product development during the third quarter of 2010.