Selling, general and administrative (SG&A) expenses were $2.9 million for the quarters ended September 30, 2012 and 2011. During the third quarter of 2012 as compared to the same period in 2011, the Company incurred increased marketing and business development costs related to commercial launch preparations for Lymphoseek and to ongoing activities in support of advancing the Company’s precision diagnostics pipeline. These costs, as well as increased SG&A headcount and other support costs incurred during the third quarter of 2012, were offset by a decrease from the third quarter of 2011 of approximately $817,000 in non-recurring charges related to the separation of the Company’s former President and CEO.
SG&A expenses were $8.5 million for the nine months ended September 30, 2012, compared to $7.5 million for the same period in 2011. The factors leading to the net increase in SG&A expenses between the two year-to-date periods were the same as described above for the three-month periods except that the offset due to the non-recurring charges related to the separation of the Company’s former President and CEO totaled approximately $2.7 million for the first nine months of 2011.
As of September 30, 2012, Navidea had cash totaling approximately $11.2 million.
Brent Larson, Navidea Senior Vice President and CFO, said, “Navidea continues to maintain a strong financial position to support our pipeline development activities in advance of revenue from our first radiopharmaceutical product, Lymphoseek. We retain flexibility in timing of our expenditures and in our access to multiple available funding sources, including borrowing under the line of credit we have in place from our primary investor, Platinum-Montaur Life Sciences, LLC. We plan to work closely with Montaur to determine the optimal timing for accessing the credit facility to maintain financial strength, support the ongoing advances in our pipeline programs and fund commercial preparations for Lymphoseek. We remain focused on the prudent management of our finances as we drive toward Lymphoseek launch and revenue generation.”