Pennsylvania-based Zynerba Pharmaceuticals, Inc. (ZYNE), reported its third-quarter earnings for the period ending September 30, 2017. The biotech company delivered a net loss of $8.3 million with basic and diluted net loss per share of $0.63. This is greater than last year’s loss of $5.9 million.
The company has no revenues to report yet as the company’s drugs are not yet available for sale. The expenses rose as well with total operating expenses rising to $8.5 million for the quarter from $5.9 million for the same period from last year. The company’s earnings announcement barely touched on the financials and instead focused on the company’s drug study highlights. Zynerba did not have a very positive year for study results and as a result, the stock has fallen over 20% since the beginning of the year. Yet, investors would not know this from the rosy outlook delivered by the CEO.
“We announced important data during the third quarter, including remarkable Phase 2 data from our FAB-C study of ZYN002 in children and adolescents with Fragile X syndrome,” said Armando Anido, Chairman, and Chief Executive Officer. “We achieved the primary endpoint and numerous secondary endpoints with statistical significance compared to baseline, and anticipate moving into a pivotal program in Fragile X in the first half of 2018. Additionally, we look forward to outlining our path forward in Epilepsy, and meeting with the FDA to discuss our OA pivotal program in the first quarter of 2018.”
As of September 30, 2017, cash and cash equivalents were $66.3 million, compared to $70.2 million as of June 30, 2017. The company says it has enough cash to make it through 2019.
On June 9, 2017, Zynerba entered into an Open Market Sales Agreement offering program, with Jefferies LLC, pursuant to which it may sell up to $50 million of its common stock. In a statement, the company said, “From September 28, 2017 through October 26, 2017, the Company has sold and issued 296,594 shares under its ATM program, at a weighted average selling price of $10.74 per share, for gross proceeds of $3.2 million. Net proceeds after deducting underwriting and commissions and offering expenses were $3.0 million. None of the proceeds were settled prior to September 30, 2017, and therefore the cash for the sale of these common shares will be recorded in the fourth quarter.”
Shares outstanding almost doubled from 8.9 million shares last year to 13 million in this latest quarter. The stock was lately trading at $12.44, down from its 52-week high of $25.95.