FREMONT, Calif., Nov. 09, 2016 (GLOBE NEWSWIRE) -- Zosano Pharma Corporation (NASDAQ:ZSAN), an emerging central nervous system company focused on providing rapid symptom relief to patients using the Company's proprietary intracutaneous delivery system, today announced financial results for the third quarter ended September 30, 2016. "I'm extremely pleased with progress achieved during the period across clinical and corporate development fronts. The announcement of the first subject dosing in the Zotrip trial for the acute treatment of migraine was, of course, a key milestone and we remain on track to report results during the first quarter of 2017. Additionally, we improved our balance sheet by executing a private placement and strengthened the leadership team with the appointment of Georgia Erbez as Chief Business Officer," commented Konstantinos Alataris, PhD, President and Chief Executive Officer of Zosano Pharma. Ms. Erbez, who continues to serve as Zosano's Interim Chief Financial Officer, has provided financial and strategic advisory services as a consultant to multiple biotechnology companies and has extensive experience in senior management roles in the healthcare sector. In July, Zosano announced the dosing of its first subject in its registration-enabling pivotal efficacy trial (the Zotrip trial), of its M207 patch, formerly known as ZP-Triptan, for the acute treatment of migraine. The results from Zotrip are expected to be reported in the first quarter of 2017. Furthermore, Zosano has confirmed with the U.S. Food & Drug Administration (FDA) that a single, positive, pivotal efficacy study, in addition to a one-year safety study, will be sufficient to file for registration under the 505(b)(2) pathway. In August, Zosano announced the completion of a private placement that generated aggregate gross proceeds of approximately $7.5 million. Financial Results for the Third Quarter Ended September 30, 2016
- Zosano reported a net loss for the third quarter of 2016 of $7.4 million, or $0.52 per share on a basic and diluted basis, compared with a net loss of $8.6 million, or $0.72 per share on a basic and diluted basis, for the same quarter in 2015.
- Research and development expenses for the third quarter of 2016 were $5.1 million, compared with $6.6 million for the same quarter in 2015. The decision to suspend development of product candidates, Daily B104, Weekly B206 and D107, resulted in a decrease primarily related to production costs for the manufacturing of clinical trial material for those products. The decrease was offset by an increase related to M207 CRO costs.
- General and administrative expenses for the third quarter of 2016 were $2.0 million, compared with $1.7 million for the same quarter in 2015. The increase in expenses was primarily due to an increase in stock-based compensation, legal and consulting costs.
- As of September 30, 2016, we had cash, cash equivalents and marketable securities of $23.1 million, debt of $14.0 million, and 16.8 million common shares outstanding.
|ZOSANO PHARMA CORPORATION AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(unaudited; in thousands, except per share amounts)|
|Three Months Ended September 30,||Nine Months Ended September 30,|
|License fees revenue||$||-||$||-||$||-||$||170|
|Collaborative development support services||-||-||-||143|
|Research and development||5,124||6,627||15,044||14,701|
|General and administrative||2,010||1,719||6,137||4,797|
|Total operating expenses||7,134||8,346||21,181||19,498|
|Loss from operations||(7,134||)||(8,346||)||(21,181||)||(19,185||)|
|Other income (expense):|
|Interest expense, net||(314||)||(314||)||(951||)||(1,247||)|
|Warrant revaluation income||-||-||-||48|
|Loss on debt extinguishment||-||-||-||(446||)|
|Net loss per common share ¿ basic and diluted||$||(0.52||)||$||(0.72||)||$||(1.73||)||$||(1.85||)|
|Weighted-average shares used in computing net loss per common share ¿ basic and diluted||14,259||11,961||12,752||11,230|
|ZOSANO PHARMA CORPORATION AND SUBSIDIARIES|
|SELECTED CONSOLIDATED BALANCE SHEETS DATA|
|September 30,||December 31,|
|Cash, cash equivalents and marketable securities||$||23,056||$||36,933|
|Total current assets||23,497||37,271|
|Secured promissory notes, current||5,931||3,360|
Zosano Contact:Georgia ErbezChief Business Officer and Interim Chief Financial Officer510-745-1200Investor Contact:Jamien JonesBlueprint Life Science Group415-375-3340 x firstname.lastname@example.org