Repros Therapeutics (NasdaqGM:RPRX) today announced financial results for the third quarter ended September 30, 2009.
Financial Results
Net loss for the three month period ended September 30, 2009, was ($10.2) million or ($0.66) per share as compared to a net loss of ($6.6) million or ($0.51) per share for the same period in 2008. The net loss for the nine month period ended September 30, 2009 was ($25.9) million or ($1.69) per share as compared to a net loss of ($19.3) million or ($1.51) per share for the same period in 2008. The increase in loss for both the three and nine month periods ended September 30, 2009 as compared to the same period in 2008 was primarily due to an increase in our clinical development activities for Proellex®, including costs to close out the studies, and our general and administration expenses, partially offset by decreased expenses in clinical development activities for Androxal®.
Research and Development expenses, or R&D, increased 41% or approximately $2.4 million to $8.3 million for the three month period ended September 30, 2009 as compared to $5.9 million for the same period in the prior year and increased 24% or approximately $4.3 million to $21.8 million for the nine month period ended September 30, 2009 as compared to $17.5 million for the same period in the prior year. The increase in R&D expenses for both the three and nine month periods ended September 30, 2009 is due primarily to an increase in clinical activities in the development of Proellex®, including costs to close out the studies, and a patent impairment charge related to Proellex®, partially offset by decreased expenses in clinical development activities for Androxal®.
General and administrative expenses, or G&A, increased 162% to approximately $2.0 million for the three month period ended September 30, 2009 as compared to $750,000 for the same period in the prior year. G&A payroll and benefit expense include salaries, bonuses, relocation expense, severance costs, non-cash stock option compensation expense and fringe benefits. Included in payroll and benefit expense is a charge for non-cash stock option expense of $266,000 for the three month period ended September 30, 2009 as compared to $105,000 for the same period in the prior year. Additionally, salaries for the three month period ended September 30, 2009 were $307,000 as compared to $193,000 for the same period in the prior year. The increase in salaries is primarily due to an increase in headcount, partially offset by a 50% salary reduction for all salaried employees effective August 16, 2009. G&A operating and occupancy expenses, which include expenses to operate as a public company, increased 177% or approximately $763,000 to $1.2 million for the three month period ended September 30, 2009 as compared to $432,000 for the same period in the prior year. The increase is primarily due to an increase in legal services of $737,000.
G&A increased 85% to approximately $4.1 million for the nine month period ended September 30, 2009 as compared to $2.2 million for the same period in 2008. G&A payroll and benefit expense include salaries, bonuses, relocation expense, severance costs, non-cash stock option compensation expense and fringe benefits. Included in payroll and benefit expense is a charge for non-cash stock option expense of $711,000 for the nine month period ended September 30, 2009 as compared to $346,000 for the same period in the prior year. Additionally, salaries for the nine month period ended September 30, 2009 were $870,000 as compared to $577,000 for the same period in the prior year. The increase in salaries is primarily due to an increase in headcount, partially offset by a 50% salary reduction for all salaried employees effective August 16, 2009. G&A operating and occupancy expenses, which include expenses to operate as a public company, increased 83% or approximately $1.0 million to $2.3 million for the nine month period ended September 30, 2009 as compared to $1.2 million for the same period in the prior year. The increase is primarily due to an increase in legal and consulting services of $932,000.
Interest income decreased 100% to zero for the three month period ended September 30, 2009 as compared to $45,000 for the same period in 2008 and decreased 99% to $4,000 for the nine month period ended September 30, 2009 as compared to $405,000 for the same period in the prior year. The decrease for both the three and nine month periods ended September 30, 2009 was primarily due to lower combined cash, cash equivalents and marketable securities balances and reduced interest rate yields that have occurred as we moved our cash investments solely into a money market mutual fund.
As of September 30, 2009 we had 16,677,404 shares of common stock outstanding.
Liquidity and Going Concern Uncertainty