“Earlier this month, we entered into two purchase agreements with Lincoln Park Capital Fund, LLC whereby we have the right to sell to Lincoln Park an aggregate of up to $16.5 million in shares of our common stock over a 30-month period, subject to certain conditions and limitations,” commented Mr. Warma. “Additionally, we implemented an at-the-market (ATM) facility in September in which we can sell up to four million shares of our common stock from time to time depending on market demand. Meanwhile we continue to explore opportunities to properly resource the Company from a capital standpoint to be able to fully support ongoing clinical development. These opportunities may result in additional capital raises, a strategic partnership or both.”
“As of September 30, 2012, our cash and cash equivalents totaled approximately $2.2 million. Our monthly burn rate for the nine months ending September 2012 was approximately $885,000, inclusive of the cost of preparations to commence the Phase IIb clinical study,” continued Mr. Warma. “We believe we have sufficient liquidity to support our current clinical trial activities into December 2012. Moving forward, we are continuing to explore potential opportunities and alternatives to obtain the additional resources that will be necessary to continue and complete the Phase IIb study and to support ongoing operations during the pendency of such study.”
Second Quarter Financial Results
Opexa reported no commercial revenues in the three and nine months ended September 30, 2012 or in the comparable prior-year periods.Research and development expenses were $1,455,938 and $4,504,243 for the three and nine months ended September 30, 2012, respectively, compared with $654,772 and $2,194,141 for the three and nine months ended September 30, 2011, respectively. The increases were primarily due to increases in the procurement and use of supplies for both our laboratory and our product manufacturing operations, the engagement of consultants for further clinical development, stock compensation expense and facilities costs.