MENLO PARK, Calif.,
Dec. 13, 2016 /PRNewswire/ --
BioPharmX Corporation (NYSE MKT: BPMX), a specialty pharmaceutical
company focusing on dermatology, today announced its financial
results for the third quarter ended Oct. 31, 2016.
Recent Highlights:
- After the close of the quarter, raised $13 million in gross proceeds, which the company
expects will provide funds sufficient to complete Phase 2b studies
of BPX-01, the company's unique topical minocycline formulation for
the treatment of Propionibacterium acnes.
- Completed in vitro research whose findings suggest that
BPX-01 may have a significant pharmacokinetic advantage over oral
minocycline for the treatment of acne.
- Presented findings that suggest BPX-01 may, for the first time,
allow dermatologists to unlock minocycline's full, potent
anti-inflammatory properties in the treatment of acne. The
study found that minocycline's anti-inflammatory benefits are more
effectively delivered to specific target areas with the BPX-01
topical formulation than with the oral formulation, which is the
only form currently available to treat acne. The finding is
important because recent independent research suggests that
inflammation may be a cause of acne and not only – as previously
thought – a side effect of the condition.
- Announced the completion of the first in vitro studies
to identify the mechanism of action by which molecular
iodine induces the death of both certain breast cancer and
fibrocystic breast condition cells.
"It is an exciting time for BioPharmX. We recently raised
a significant amount of capital and presented expanded research
that demonstrates the promise of BPX-01," said Anja Krammer, president of BioPharmX
Corporation. "During the quarter we reached several important
milestones on our journey toward becoming a leading dermatology
specialty pharmaceutical company."
Third Quarter Financial Results
For the third quarter
ended Oct. 31, 2016, total operating
expenses were $4.2 million, compared with total operating
expenses of $3.8 million in the
prior fiscal year's third quarter. The increase resulted primarily
from higher spending for the company's acne drug clinical trials,
offset by lower spending on advertising and promotions related to
the company's Violet product.
Net loss for the third quarter was $3.9 million, or
$0.12 per share, compared with a
net loss of $3.9 million, or $0.18 per share, during
the prior fiscal year's third quarter.
Excluding stock-based compensation expense, the charge related
to the modification of certain warrants, the impact of changes in
the fair value of the warrant liability and amortization of
purchased intangible assets, non-GAAP net loss available to common
stockholders for the third quarter was $3.9
million, or $0.12 per share.
During the third quarter of the prior fiscal year, the comparable
non-GAAP net loss available to common stockholders was $3.6 million, or $0.17 per share.
Cash and cash equivalents as of Oct. 31,
2016 were $0.5 million.
After the end of the third quarter, the company raised
approximately $13 million in gross
proceeds in a public offering of its capital stock.
Conference Call & Webcast
BioPharmX will host a
conference call today at 4:30 p.m. ET
to discuss its third quarter financial results. A live webcast of
the conference call will be available online on the Investors
section of the BioPharmX website at
http://www.biopharmx.investorroom.com. You may also access
this call by dialing (866) 652-5200 for domestic callers or (412)
317-6060 for international callers, and requesting to join the
BioPharmX Corporation call.
A telephonic replay of the call will be available today
beginning at 3:30 p.m.
PT/6:30 p.m. ET for 30 days
after the call. To access the replay, dial (877) 344-7529 or (412)
317-0088 and reference Conference ID: 10097418. The webcast will
also be available on the BioPharmX website for 90 days following
the completion of the call.
About BioPharmX® Corporation
BioPharmX Corporation
(NYSE MKT: BPMX) is a Silicon Valley-based specialty pharmaceutical
company, which seeks to provide products through proprietary
platform technologies for prescription, over-the-counter (OTC), and
supplement applications in the health and wellness markets,
including dermatology and women's health. To learn more about
BioPharmX, visit www.BioPharmX.com.
Use of Non-GAAP Measures
BioPharmX Corporation has
supplemented its reported GAAP financial information with non-GAAP
measures, non-GAAP net loss available to common stockholders, and
non-GAAP net loss available to common stockholders per share, that
do not include a one-time charge related to the modification of
certain warrants, stock-based compensation, the impact of changes
in the fair value of the warrant liability, and the amortization of
purchased intangible assets. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for results prepared in accordance with GAAP. Management
uses the non-GAAP information internally to evaluate its ongoing
business, operational performance and cash requirements and
believes these non-GAAP measures are useful to investors as they
provide the same basis for evaluating BioPharmX Corporation's
performance as applied by management.
BioPharmX Corporation has provided a reconciliation of each
non-GAAP financial measure to the most directly comparable GAAP
financial measure. These non-GAAP measures may be different from
non-GAAP measures used by other companies, including peer
companies, and therefore, comparability may be limited. In
addition, these non-GAAP measures are not based on any
comprehensive set of accounting rules or principles. BioPharmX
Corporation believes that non-GAAP measures have limitations in
that they do not reflect all of the amounts associated with its
results of operations as determined in accordance with GAAP and
that these measures should be considered in addition to, not as a
substitute for or in isolation from, measures prepared in
accordance with GAAP. BioPharmX Corporation encourages investors
and others to review the company's financial information in its
entirety and not rely on a single financial measure.
In the first quarter of fiscal year 2016, BioPharmX Corporation
amended certain warrants resulting in a one-time charge. This
amount is excluded from its non-GAAP net loss available to common
stockholders and non-GAAP net loss available to common stockholders
per share because it is not reflective of ongoing operating results
in the period incurred.
Stock-based compensation expenses represent non-cash charges
related to equity awards granted by BioPharmX Corporation. The
change in fair value of the warrant liability results from the
periodic revaluing of the warrant liability. Although these
are recurring charges to BioPharmX Corporation's operations,
management believes the measurement of these amounts can vary
considerably from period to period and depend substantially on
factors that are not a direct consequence of operating performance
that is within management's control. Thus, management believes that
excluding stock-based compensation expenses and the impact of
changes in the fair value of the warrant liability from non-GAAP
net loss available to common stockholders and non-GAAP net loss
available to common stockholders per share facilitates comparisons
of BioPharmX Corporation's operational performance in different
periods, as well as with similarly determined non-GAAP financial
measures of comparable companies.
Amortization of purchased intangible assets results from the
purchase of a license related to molecular iodine technology. This
amount is excluded from non-GAAP net loss available to common
stockholders and non-GAAP net loss available to common stockholders
per share because it is not reflective of ongoing operating results
in the period incurred.
Forward-Looking Statements
The information in this
press release contains forward-looking statements and information
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are subject to the "safe harbor" created by those
sections. This press release contains forward-looking statements
about the company's expectations, plans, intentions, and
strategies, including, but not limited to, statements regarding the
sufficiency and use of funds, effectiveness of BPX-01 and the
successful advancement of the company's product candidates and
research and development pipeline, including the Phase 2b study.
These forward-looking statements may be identified by words such as
"plan," "expect," "anticipate," "believe" or similar expressions
that are intended to identify such forward-looking statements.
These forward looking statements involve risks and
uncertainties, as well as assumptions, which, if they do not fully
materialize or prove incorrect, could cause our results to differ
materially from those expressed or implied by such forward-looking
statements. The risks and uncertainties include those described in
the company's filings with the Securities and Exchange Commission,
including our annual report on Form 10-K for the period ended
January 31, 2016. Given these risks
and uncertainties, you are cautioned not to place undue reliance on
such forward-looking statements. The forward-looking statements
included in this news release are made only as of the date hereof,
and the company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
under applicable securities law.
BioPharmX and Violet are registered trademarks of BioPharmX,
Inc.
--TABLES TO FOLLOW--
BIOPHARMX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
(in thousands,
except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
October
31,
|
|
October
31,
|
|
|
|
|
2016
|
2015
|
|
2016
|
2015
|
|
|
|
|
|
|
|
|
|
Revenues,
net
|
|
$
33
|
$
20
|
|
$
85
|
$
29
|
Cost of goods
sold
|
28
|
19
|
|
65
|
38
|
Gross margin
(deficit)
|
5
|
1
|
|
20
|
(9)
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
Research and
development
|
2,487
|
1,649
|
|
7,633
|
3,866
|
|
Sales and
marketing
|
529
|
1,270
|
|
2,531
|
3,658
|
|
General and
administrative
|
1,154
|
930
|
|
3,516
|
3,074
|
|
|
Total operating
expenses
|
4,170
|
3,849
|
|
13,680
|
10,598
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(4,165)
|
(3,848)
|
|
(13,660)
|
(10,607)
|
|
Change in fair value
of warrant liability
|
334
|
-
|
|
334
|
-
|
|
Other expense,
net
|
(47)
|
-
|
|
(45)
|
(436)
|
|
Loss before income
taxes
|
(3,878)
|
(3,848)
|
|
(13,371)
|
(11,043)
|
|
Provision for income
taxes
|
-
|
2
|
|
2
|
2
|
Net and
comprehensive loss
|
(3,878)
|
(3,850)
|
|
(13,373)
|
(11,045)
|
|
|
|
|
|
|
|
|
|
Accretion on Series A
convertible redeemable preferred stock
|
-
|
-
|
|
-
|
(202)
|
Deemed dividend on
Series A convertible redeemable preferred stock
|
-
|
-
|
|
-
|
(201)
|
Net loss available
to common stockholders
|
$
(3,878)
|
$
(3,850)
|
|
$
(13,373)
|
$
(11,448)
|
|
|
|
|
|
|
|
|
|
Net loss per
share
|
|
|
|
|
|
|
Basic and
diluted
|
($0.12)
|
($0.18)
|
|
($0.47)
|
($0.71)
|
Shares used in
computing net loss per share
|
|
|
|
|
|
|
Basic and
diluted
|
31,253
|
21,037
|
|
28,737
|
16,109
|
BIOPHARMX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
October
31,
|
January
31,
|
|
|
|
|
2016
|
2016
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
468
|
$
4,039
|
|
|
Accounts
receivable
|
7
|
7
|
|
|
Inventories
|
77
|
100
|
|
|
Prepaid expenses and
other current assets
|
742
|
285
|
|
|
|
Total current
assets
|
1,294
|
4,431
|
|
|
|
|
|
|
|
Property and
equipment, net
|
185
|
216
|
|
Intangible assets,
net
|
97
|
119
|
|
Other
assets
|
50
|
85
|
|
|
|
Total
assets
|
$
1,626
|
$
4,851
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity (Deficit)
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
2,835
|
$
1,777
|
|
|
Accrued expenses and
other current liabilities
|
2,184
|
1,020
|
|
|
Convertible notes
payable, net
|
479
|
-
|
|
|
|
Total current
liabilities
|
5,498
|
2,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible notes
payable, net
|
934
|
-
|
|
Warrant
liability
|
232
|
-
|
|
|
|
Total
liabilities
|
6,664
|
2,797
|
|
|
|
|
|
|
|
Stockholders' equity
(deficit)
|
(5,038)
|
2,054
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity (deficit)
|
$
1,626
|
$
4,851
|
BIOPHARMX
CORPORATION
|
Reconciliation of
GAAP to Non-GAAP Net Loss and Net Loss Per Share Available to
Common Stockholders
|
(in thousands,
except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
October
31,
|
|
October
31,
|
|
|
|
2016
|
2015
|
|
2016
|
2015
|
|
|
|
|
|
|
|
|
GAAP net loss
available to common stockholders
|
$
(3,878)
|
$
(3,850)
|
|
$
(13,373)
|
$
(11,448)
|
|
|
|
|
|
|
|
|
|
Change in fair value
of warrant liability
|
(334)
|
-
|
|
(334)
|
-
|
|
Expense related to
modification of warrants
|
-
|
-
|
|
-
|
436
|
|
Amortization of
purchased intangible assets
|
7
|
7
|
|
22
|
22
|
|
Stock-based
compensation expense
|
|
|
|
|
|
|
-
|
Research and
development
|
87
|
38
|
|
292
|
163
|
|
-
|
Sales and
marketing
|
65
|
93
|
|
247
|
300
|
|
-
|
General and
administrative
|
195
|
111
|
|
505
|
403
|
|
|
Total
stock-based compensation expense
|
347
|
242
|
|
1,044
|
866
|
|
Total reconciling
items
|
20
|
249
|
|
732
|
1,324
|
Non-GAAP net loss
available to common stockholders
|
$
(3,858)
|
$
(3,601)
|
|
$
(12,641)
|
$
(10,124)
|
|
|
|
|
|
|
|
|
GAAP net loss
available to common stockholders per share
|
$
(0.12)
|
$
(0.18)
|
|
$
(0.47)
|
$
(0.71)
|
|
Reconciling
items
|
|
|
|
|
|
|
-
|
Change in fair value
of warrant liability
|
(0.01)
|
-
|
|
(0.01)
|
-
|
|
-
|
Expense related to
modification of warrants
|
-
|
-
|
|
-
|
0.03
|
|
-
|
Amortization of
purchased intangible assets
|
-
|
-
|
|
-
|
-
|
|
-
|
Stock-based
compensation expense
|
0.01
|
0.01
|
|
0.04
|
0.05
|
|
|
|
|
|
|
|
|
Non-GAAP net loss
per share: basic and diluted
|
$
(0.12)
|
$
(0.17)
|
|
$
(0.44)
|
$
(0.63)
|
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP net loss per share
|
|
|
|
|
|
|
Basic and
diluted
|
31,253
|
21,037
|
|
28,737
|
16,109
|
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SOURCE BioPharmX Corporation