Repros Therapeutics net loss decreases to $1.1M for first-quarter 2010

Repros Therapeutics (NasdaqCM: RPRX) today announced financial results for the first quarter ended March 31, 2010.

Financial Results

Net loss for the three month period ended March 31, 2010, was ($1.1) million or ($0.04) per share as compared to a net loss of ($6.8) million or ($0.45) per share for the same period in 2009. The decrease in loss for the three month period ended March 31, 2010 as compared to the same period in 2009 was primarily due to decreased expenses in clinical development for Androxal® and Proellex®.

Research and development ("R&D") expenses decreased 92% or approximately $5.2 million to $458,000 for the three month period ended March 31, 2010 as compared to $5.7 million for the same period in the prior year. Our primary R&D expenses for the three month periods ended March 31, 2010 and 2009 are shown in the following table (in thousands):

The decrease in R&D expenses is primarily due to the decreased clinical development expenses related to Proellex® as a result of the discontinuation of all clinical trials due to the FDA's clinical hold on Proellex®. R&D expenses were further decreased by the decreased clinical development expenses related to Androxal® due to the completion of a Phase 2b proof-of-concept clinical trial in 2009. Additionally, payroll and benefits expenses decreased due to reduced headcount and the 50% salary reduction program put in place in August 2009.

General and administrative expenses ("G&A") decreased 37% to approximately $669,000 for the three month period ended March 31, 2010 as compared to $1.1 million for the same period in the prior year. Our primary G&A expenses for the three month periods ended March 31, 2010 and 2009 are shown in the following table (in thousands):

G&A payroll and benefits expense for both three month periods ended March 31, 2010 and 2009 include salaries, non-cash stock option compensation expense and fringe benefits. Included in payroll and benefits expense is a charge for non-cash stock option expense of $74,000 for the three month period ended March 31, 2010 as compared to $192,000 for the same period in the prior year. Additionally, salaries for the three month period ended March 31, 2010 were $63,000 as compared to $238,000 for the same period in the prior year. The decrease in salaries is primarily due to a decrease in headcount and the 50% salary reduction program put in place in August 2009. G&A operating and occupancy expenses, which include expenses to operate as a public company, decreased 12% to $516,000 for the three month period ended March 31, 2010 as compared to $585,000 for the same period in the prior year. The decrease is primarily due to a decrease in travel expenses.

Total revenues and other income decreased 100% to zero for the three month period ended March 31, 2010 as compared to $3,000 for the same period in 2009. The decrease was primarily due to lower cash and cash equivalents balances and reduced interest rate yields.

As of March 31, 2010 we had 26,414,476 shares of common stock outstanding.

Liquidity, Capital Resources and Going Concern Uncertainty

As of March 31, 2010, we had cash and cash equivalents of approximately $974,000 as compared to $1.9 million as of December 31, 2009. As of April 30, 2010, we had cash and cash equivalents of approximately $4.0 million. Our Annual Report on Form 10-K for the year ended December 31, 2009 includes an explanatory paragraph about the report of its independent registered public accounting firm that there is substantial doubt about Repros' ability to continue as a "going concern". Repros also received a similar going concern opinion for the years ended December 31, 2008 and 2007.

On February 12, 2010, we entered into an Equity Distribution Agreement (the "Equity Distribution Agreement") with Ladenburg Thalmann & Co. Inc. ("Ladenburg"), pursuant to which we may issue and sell from time to time through Ladenburg, as sales agent and/or principal, shares of our common stock having an aggregate offering price of up to $10 million (the "ATM Shares"). As of March 31, 2010, we have sold 523,419 ATM Shares at a weighted average share price of $0.75, for proceeds of approximately $289,000, net of expenses. Between April 1, 2010 and May 7, 2010, we have sold 5,551,177 ATM Shares at a weighted average share price of $0.78 for additional net proceeds of approximately $4.2 million.