ZIOPHARM Oncology, Inc. (Nasdaq: ZIOP), a biopharmaceutical company that is seeking to develop and commercialize a diverse, risk sensitive portfolio of in-licensed cancer drugs addressing unmet medical needs, today reported its financial results for the three months ended March 31, 2010 and updated the Company's continued progress with its clinical programs.
In the first quarter of 2010, the Company's cash burn from operations was $3.8 million, a decrease of $0.8 million from $4.6 million for the same period for 2009. The spending decrease represents a continued focus of resources as well as tight management of operating expenses. The Company ended the March 2010 quarter with cash of approximately $45.0 million. The Company expects its existing cash resources to support operations early into the first quarter of 2012, although this expectation could change based on, among other things, the scope and timing for the Company's registration trial for palifosfamide.
The net loss from operations for the first quarter of 2010 was $4.6 million, or $(0.11) per share, compared with a net loss from operations for the first quarter of 2009 of $3.3 million, or $(0.16) per share. In the first quarter of 2010, there was a $13.1 million non-cash charge for the change in the fair value of warrants arising from the increase in the Company's stock price, resulting in a total net loss for the first quarter of $17.7 million, or $(0.44) per share, compared with a net loss for the first quarter of 2009 of $3.3 million, or $(0.16) per share. The warrant charge relates to fair value accounting which requires the warrants to be marked to market under accounting principles generally accepted in the United States.
Research and development expenses in the first quarter of 2010 increased $0.3 million while general and administrative expenses increased by $0.9 million. The increased general and administrative activity during the first three months of 2010 was related to administrative support in preparation for new clinical studies not yet initiated.
Progress for all three of the Company's clinical-stage compounds continues to advance. Palifosfamide (ZymafosTM or ZIO-201) has been recognized with acceptance for presentation at the American Society for Clinical Oncology (ASCO) Annual Meeting in June. It has also been selected to be included in the 2010 Best of ASCO®. The Best of ASCO® program features selected important abstracts that highlight the latest scientific findings and practice-changing advances in cancer prevention and treatment, allowing faculty members to provide a clinical context for this new scientific information. Meetings are conducted in both Boston and San Francisco as well as in many international cities. The Company expects to initiate a worldwide palifosfamide Phase III registration trial as early as the first half of this year.
Also during the first quarter, the Company initiated a Phase I/II study of indibulin (ZybulinTM or ZIO-301) at Memorial Sloan-Kettering Cancer Center for the novel, mathematically - determined administration of indibulin in the treatment of metastatic breast cancer. With regard to darinaparsin (ZinaparTM, or ZIO-101), the Company recently presented preclinical data at the 2010 AACR Annual Meeting and the Phase I clinical studies of the oral form of the drug are continuing while the Company moves to a potential pathway for regulatory approval of the intravenous form in peripheral T-cell lymphoma.
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