Less than a month ago we covered the news that InVivo Therapeutics Holdings Corp. was ready to start the first trial of its Neuro-Spinal Scaffold. Now the biomaterials company has reported financial results for the quarter ended March 31, 2014 and updated us on its business.
InVivo Therapeutics Holdings Corp. describes itself as a pioneering biomaterials company with unique technologies for drug delivery with a focus on treatment of spinal cord injuries.
So what do the financials tell us? Well, in the absence of a sales line, it’s currently more a matter of minimizing losses while overcoming the hurdles that exist between here and ultimate product approval. To that end the Company reported a net loss of approximately $5,103,000 or $0.07 per diluted share for the quarter ended March 31, 2014, compared to a net loss of $13,326,000 or $0.20 per diluted share, for the quarter ended March 31, 2013. Non-cash gains (losses) from modification of warrants and derivatives in the amount of $10,449,000 were included in results for the quarter ended March 31, 2013, and reflected changes in the fair market value of the derivative warrant liability. Exclusive of this non-cash item, the adjusted net loss for the quarter ended March 31, 2013, was $2,877,000, or $0.04 per diluted share. In other words, losses for the current period were greater than a year ago, due to a ramping of R&D costs ($3.2 million vs $1.2 million) and supporting admin expenses as the trial programme kicks off.
The Company ended the quarter with $9,846,000 of cash and cash equivalents.
Mark Perrin, Chief Executive Officer, said, “As we previously reported, we are excited to have our first clinical site in the final stages of surgical training for our scaffold pilot study and expect to have patient enrollment open by the end of May. We anticipate having a second site open for enrollment by the end of May and a third site open by the end of the second quarter. We also recently completed an underwritten public offering of shares of common stock and warrants, and we received approximately $14.6 million in net proceeds from the offering after deducting underwriter fees and other offering expenses. The funds will be utilized to complete our clinical study, fund additional research, development and clinical projects, and for working capital. We anticipate these funds will be sufficient to take us through November 2015.”
Source: InVivo Therapeutics, Inc., Business Wire