Anadys Pharmaceuticals, Inc. (Nasdaq: ANDS), a biopharmaceutical company dedicated to improving patient care by developing novel medicines for the treatment of hepatitis C, today reported its financial results and program highlights for the second quarter ended June 30, 2010.
"In the second quarter we continued to advance the development of ANA598, and we enhanced the Company's financial position through a $12.5M equity offering," said Steve Worland, Ph.D., President and CEO of Anadys. "We believe the SVR12 data reported today, combined with an excellent resistance and safety profile, establish ANA598 at 200 mg bid as one of the most attractive agents in Phase II HCV development today."
Financial Results
As of June 30, 2010, the Company's cash, cash equivalents and securities available-for-sale totaled $22.1 million compared to $20.5 million as of December 31, 2009. The increase in cash, cash equivalents and securities available-for-sale reflects the receipt of net proceeds of $11.4 million from our "registered direct" offering completed during June 2010 partially offset by the year-to-date cash utilization to fund our operations, including expenditures associated with our Phase II combination study of ANA598.
Total operating expenses were $4.7 million for the second quarter of 2010, compared to $7.2 million for the second quarter of 2009. Included as a component of Anadys' operating expenses were non-cash, share-based expenses of $0.4 million and $1.1 million for the second quarter of 2010 and 2009, respectively.
Research and development expenses were $3.1 million for the second quarter of 2010, compared to $4.6 million for the second quarter of 2009. The $1.5 million decrease was attributable to a $0.8 million decrease in severance related costs from the June 2009 strategic restructuring, including a $0.3 million decrease in share-based compensation associated with the modification of stock options, a $0.5 million decrease in ANA773 development costs and a $0.2 million decrease in facility costs associated with the relocation of our corporate headquarters in July 2009. These items are partially offset by an increase in ANA598 development costs of $0.3 million.
General and administrative expenses were $1.6 million for the second quarter of 2010, compared to $2.5 million for the second quarter of 2009. The $0.9 million decrease was primarily attributable to a $0.6 million decrease in severance related costs from the June 2009 strategic restructuring, including a $0.1 million decrease in share-based compensation associated with the modification of stock options.
The net loss was $3.0 million for the second quarter of 2010, compared to a net loss of $6.5 million for the second quarter of 2009. Included in the net loss for the second quarter of 2010 is a $1.6 million gain resulting from a decrease in the liability associated with our common stock warrants from March 31, 2010 to June 30, 2010. The warrants were issued in connection with our "registered direct" offering in June 2009. Basic and diluted net loss per common share was $0.08 in the second quarter of 2010, compared to $0.21 in the second quarter of 2009. Non-cash share-based expense resulted in a $0.01 and $0.03 increase in basic and diluted net loss per share for the second quarter of 2010 and 2009, respectively.
For the six months ended June 30, 2010, Anadys reported a net loss of $9.2 million, compared to $15.3 million for the same period last year. Basic and diluted net loss per common share was $0.24 for the six months ended June 30, 2010 compared to $0.51 for the same period last year.
Recent ANA598 Highlights from Phase II Combination Study