RXi Pharmaceuticals Corporation (OTC: RXII), a biotechnology company focused on discovering, developing and commercializing innovative therapies addressing major unmet medical needs using RNA-targeted and immunotherapy technologies, today reported its financial results for the quarter ended June 30, 2012.
" The new RXi has had a flying start in this recent quarter," said Dr. Geert Cauwenbergh, President and CEO of the company. He added that: " not only have we made the transition from a technology platform company to a clinical development company, with our IND for RXI-109 accepted by the FDA, and recruitment in our Phase 1more than 60% complete, we have also reshaped both our Board of Directors and Scientific Advisory Board in line with this shift from a research to a development Company. Last but not least, we have been able to do all this while implementing significant prudence in our spending, as reflected in the reduction of net cash used in operating activities by 48%, to $2.66 million in the first half of 2012, compared to $5.06 million in the same period of 2011".
Quarterly Financial Highlights:Cash and Cash Equivalents As of June 30, 2012, RXi had cash and cash equivalents of approximately $7.6 million, compared with $0.6 million as of December 31, 2011. The increase in cash and cash equivalents from December 31, 2011 is primarily attributable to the net proceeds of approximately $8.1 million received from the issuance of the Company’s convertible preferred stock upon completion of the spin-off from the Company’s former parent company, Galena Biopharma, Inc. on April 27, 2012. The Company believes that the cash available at June 30, 2012 should be sufficient to fund RXi’s operations into the second quarter of 2013. Net Loss Net loss applicable to common stockholders for the three months ended June 30, 2012 was $17.2 million or $0.13 per basic and diluted share, compared with a net loss applicable to common stockholders of $1.9 million, or $0.05 per basic and diluted share, for the comparable period in 2011. RXi also reported a net loss applicable to common stockholders of $19.1 million, or $0.16 per basic and diluted share, for the six months ended June 30, 2012, compared with a net loss applicable to common stockholder of $5.7 million, or $0.19 per basic and diluted share for the comparable period in 2011. The increase in net loss applicable to common stockholders for the three and six months ended June 30, 2012 compared to the same periods in the prior year was primarily attributable to the non-cash dividend of $9.6 million relating to the beneficial conversion feature as a result of the issuance of convertible preferred stock on April 27, 2012 and non-cash expense of $6.2 million relating to the fair value of common stock issued in exchange for patent and technology rights.