Egalet Corporation (Nasdaq: EGLT) ("Egalet") today reported financial results for the year ended December 31, 2014.
2014 Financial Results:
- Cash Position: Cash as of December 31, 2014 was $52.7 million compared to $15.7 million at December 31, 2013. The increase was the result of our initial public offering ("IPO"), the exercise by the underwriters of the IPO of a portion of the over-allotment option granted to them in connection with the IPO, and a separate private placement with our collaboration partner, Shionogi, for total net proceeds of $67.0 million. This was partially offset by cash expenditures in our normal course of business.
- Revenue: There were net revenues of $1.9 million for the year ended December 31, 2014 compared to no revenues for the year ended December 31, 2013. The increase was due to the amortization of deferred revenue and certain research and development services performed under our collaboration and license agreement with Shionogi.
- R&D Expenses: Research and development expenses were $22.4 million for the year ended December 31, 2014 compared to $6.3 million in 2013. The increase of $16.1 million was driven primarily by increases in our development costs for our abuse-deterrent morphine product candidate Egalet‑001 and our abuse-deterrent oxycodone product candidate Egalet-002 of $8.0 million and $3.0 million, respectively, due to increased clinical study costs including the manufacturing of product.
- G&A Expenses: General and administrative expenses increased to $16.7 million for 2014 compared to $5.1 million for 2013. The increase was driven primarily by the implementation of our stock compensation plan, resulting in $5.1 million of stock compensation expense in 2014, as well as an increase of $2.3 million in salary and related expenses due to the growth in our operations the United States. In addition, professional fees increased $2.9 million in 2014 as a result of growing our U.S. operations and becoming a publicly traded company.
- Net Loss: Net loss was $43.2 million for the year ended December 31, 2014 compared to net loss of $20.2 million for the year ended December 31, 2013. The increase in net loss was primarily driven by increased R&D expenses for the clinical study expenses for Egalet-001 and Egalet-002 and increased G&A expenses as a result of Egalet's IPO in 2014.