May 7 2012
Unigene Laboratories, Inc. (OTCBB: UGNE), today announced financial results for the first quarter ended March 31, 2012.
First Quarter 2012 Financial Summary
Unigene announced that its net loss for the three months ended March 31, 2012 decreased to $6.0 million or $(0.06) per share from $6.6 million or $(0.07) per share for the corresponding period in 2011.
Revenue for the three months ended March 31, 2012 decreased to $1.8 million from $2.1 million in the comparable period in 2011.
Cash and cash equivalents at March 31, 2012 totaled $3.7 million, a decrease of $952,000 from December 31, 2011. The cash balance at March 31, 2012 is prior to Unigene's payment of approximately $489,000 in accounts payable on April 4, 2012. Based on the Company's current projections, cash flow is expected to be sufficient to fund its business operations through the end of 2012. However, the Company believes during that timeframe, there is the risk of defaulting on the covenants of its senior secured convertible note.
Ashleigh Palmer, Unigene's President and CEO stated, "Addressing Unigene's balance sheet remains our highest priority challenge. We fully understand our current capital structure threatens the Company's viability going forward. However, we remain committed to executing on our 2012 corporate milestones and finding solutions to retire our inherited debt and restructure our balance sheet."
The Company reiterated its previously announced 2012 anticipated milestones.
2012 Anticipated Milestones
- Publish detailed results of oral PTH analog's positive Phase 2 proof-of-concept trial in peer review journal and/or prestigious scientific congress;
- Effectively partner oral PTH analog, a transactable Phase 2 proof-of-concept asset;
- Continue to build a robust portfolio of feasibility programs with various biopharmaceutical partners evaluating Unigene's industry-leading Peptelligence™ platform for oral drug delivery of proprietary peptides;
- Convert at least one Peptelligence™ feasibility study into a definitive license agreement associated with upfront and milestone payments and royalties;
- File an Investigational New Drug (IND) application and begin Phase 1 clinical testing of Unigene's lead metabolic peptide, UGP281, targeting patients with morbid obesity; and
- Select lead molecule and announce relevant preclinical study results for Type 2 diabetes or osteoarthritis indication under the JDV with Nordic Bioscience.
Additional Financial Results & Notes
Revenue for the three months ended March 31, 2012 decreased $375,000, or 18%, to $1.8 million from $2.1 million in the comparable period in 2011. This was primarily due to the continuing decline in royalties from Upsher-Smith Laboratories, Inc., as a result of increased competition in the nasal calcitonin market, leading to decreased licensing revenue.
Unigene had an operating loss of $2.7 million for the three months ended March 31, 2012, a decrease of $0.9 million when compared to the operating loss of $3.6 million for the three months ended March 31, 2011.
Net loss for the three months ended March 31, 2012 decreased approximately $634,000, or 10%, to $6.0 million from $6.6 million for the corresponding period in 2011. This was primarily due to a decrease in operating expenses of $1.3 million, partially offset by the write-off of the Company's investment in Tarsa of $651,000 and a decrease in revenue of $375,000. In addition, in the first quarter of 2011, Unigene recognized a loss of $303,000 on the Company's former joint venture in China.
Source:
Unigene Laboratories, Inc.