CorMedix Inc. (“CorMedix”) (NYSE MKT: CRMD), a pharmaceutical company focused on developing and commercializing therapeutic products for the prevention and treatment of cardiorenal disease, announces its financial results for the year ended December 31, 2012.
Fourth Quarter 2012 and First Quarter 2013 Financing Developments
During the fourth quarter of 2012 and first quarter of 2013, CorMedix:
- successfully raised approximately $500K through a private placement of convertible notes in November 2012, which was the second tranche of a financing that raised an aggregate of $1.32 million;
- entered into a marketing agreement for Neutrolin ® with MKM Co-Pharma GmbH in January 2013; and
- raised $533,000 in gross proceeds from the sale to an existing institutional investor of shares of our Series A non-voting convertible preferred stock and related common stock warrants in February 2013.
Financial Results for the Year Ended December 31, 2012The net loss for the year ended December 31, 2012 was $3.4 million, or ($0.30) per diluted share, compared to a net loss of $6.7 million, or ($0.59) per diluted share, for the year ended December 31, 2011. The decrease in net loss was primarily attributable to CorMedix’s decision in late 2011 to focus the majority of its resources, including its research and development efforts primarily on CE Mark approval and the commercialization of Neutrolin ® (CRMD003) in Europe. Research and Development (“R&D”) expense was $1.2 million for the year ended December 31, 2012, a decrease of $2.9 million, from $4.1 million for the year ended December 31, 2011. The decrease in R&D was primarily attributed to CorMedix’s strategic change of direction during September 2011, which is to focus primarily on CE Mark approval for Neutrolin ® in Europe. During the fourth quarter of 2011, CorMedix also discontinued the development of deferiprone (CRMD001), and returned the product candidate to the licensor in December 2011. CorMedix’s strategic change of direction also resulted in lower clinical research organization, manufacturing and regulatory expenses related to the development of CRMD003 during the second quarter of 2012 and lower personnel costs as a result of its former Chief Medical Officer (“CMO”) transitioning to a part-time status and a 50% reduction of salary effective March 2012. General and Administrative (“G&A”) expense was $1.9 million for the year ended December 31, 2012, a decrease of $1.2 million, from $3.1 million for the year ended December 31, 2011. The decrease was primarily attributable to lower compensation and stock-based compensation expense as a result of the separation of CorMedix’s former President and Chief Executive Officer in September 2011 and the resignation of its Chief Financial Officer/Chief Operating Officer in April 2012 and lower expenses related to investor relations.