MENLO PARK, Calif.,
Dec. 6, 2018 /PRNewswire/
-- BioPharmX Corporation (NYSE American: BPMX), a specialty
pharmaceutical company focused on developing innovative medical
dermatology products, today reports financial results for the
quarter ended Oct. 31, 2018.
During the quarter, newly appointed BioPharmX President and CEO
Dr. David S. Tierney commenced a
strategic review of the business and took steps to streamline
strategy and focus on the company's core products to maximize
shareholder value.
Key Highlights
BioPharmX made progress on several fronts:
- In October 2018, BioPharmX
initiated its Phase 2b clinical trial
of BPX-041, a 1% topical minocycline gel formulation for
the treatment of moderate-to-severe papulopustular rosacea. The
trial is a randomized, double-blind, vehicle-controlled study in
subjects at least 18 years old with 15 to 70 inflammatory lesions
and an investigator's global assessment (IGA) score of 3 or 4
(moderate or severe) at baseline. The primary endpoint for the
multi-center study is an absolute mean change in the number of
inflammatory lesions from baseline to week 12. The company
anticipates study completion in mid-2019.
- In November 2018, the company
reduced its operating costs by executing a 33% reduction in
workforce and discontinuing non-core development programs. As part
of this more focused strategy, the company divested its molecular
iodine technology, including the dietary supplement product,
VI2OLET, thereby allowing the company to focus on its
dermatology product candidates.
- In November 2018, the company
entered into agreements with certain stockholders to amend certain
of its existing warrants to reduce the exercise price per share and
to provide for the issuance of new warrants, in exchange for the
stockholders' agreement to exercise their existing warrants for
cash, resulting in net proceeds to the company of approximately
$2.8 million. These proceeds are not
reflected in the cash and cash equivalents balance as of
Oct. 31, 2018 in the financial tables
below.
- In November 2018, NYSE Regulation
accepted the company's plan to regain compliance with the NYSE
American continued listing standards set forth in the NYSE American
Company Guide, and has granted a plan period through Sept. 24, 2019.
"The quarter was important for BioPharmX because we made
progress in improving our financial stability and advancing our
product pipeline," said Dr. Tierney. "Our operating cost reduction
will enable BioPharmX to dedicate more resources to our product
candidates."
Third Quarter Financial Results
For the third quarter ended Oct. 31, 2018, total operating
expenses were $4.4 million, compared with total operating
expenses of $3.7 million in the prior fiscal year's third
quarter.
Net loss for the quarter ended Oct. 31,
2018 was $4.4 million, or $0.02 per share,
compared with a net loss of $3.7 million, or $0.05 per
share, during the prior fiscal year's third quarter.
Excluding stock-based compensation expense and the impact of the
change in fair value of warrant liability, non-GAAP net loss for
the quarter ended Oct. 31, 2018 was $3.7 million,
or $0.02 per share of common stock. During the third
quarter of the prior fiscal year, the comparable non-GAAP net loss
was $3.3 million, or $0.04 per share.
Cash and cash equivalents as of Oct. 31, 2018,
were $3.0 million.
About BioPharmX® Corporation
BioPharmX Corporation
(NYSE American: BPMX) is a specialty pharmaceutical company,
developing prescription products through proprietary platform
technologies for dermatology indications. To learn more about
BioPharmX, visit www.BioPharmX.com.
Use of Non-GAAP Measures
BioPharmX Corporation has
supplemented its reported GAAP financial information with non-GAAP
measures, non-GAAP net loss, and non-GAAP net loss per share, that
do not include stock-based compensation expense, the impact of
changes in the fair value of the warrant liability and expense
related to the modification of warrants. The presentation of this
additional information is not meant to be considered in isolation
or as a substitute for results prepared in accordance with GAAP.
Management uses the non-GAAP information internally to evaluate its
ongoing business, operational performance and cash requirements and
believes these non-GAAP measures are useful to investors as they
provide the same basis for evaluating BioPharmX Corporation's
performance as applied by management.
BioPharmX Corporation has provided a reconciliation of each
non-GAAP financial measure to the most directly comparable GAAP
financial measure. These non-GAAP measures may be different from
non-GAAP measures used by other companies, including peer
companies, and therefore, comparability may be limited. In
addition, these non-GAAP measures are not based on any
comprehensive set of accounting rules or principles. BioPharmX
Corporation believes that non-GAAP measures have limitations in
that they do not reflect all of the amounts associated with its
results of operations as determined in accordance with GAAP and
that these measures should be considered in addition to, not as a
substitute for or in isolation from, measures prepared in
accordance with GAAP. BioPharmX Corporation encourages investors
and others to review the company's financial information in its
entirety and not rely on a single financial measure.
Stock-based compensation expenses represent non-cash charges
related to equity awards granted by BioPharmX Corporation. The
change in fair value of the warrant liability results from the
periodic revaluing of the warrant liability. In the third
quarter of fiscal year 2018, BioPharmX Corporation amended certain
warrants resulting in a one-time charge. This amount is excluded
from its non-GAAP net loss and non-GAAP net loss per share because
it is not reflective of ongoing operating results in the period
incurred. Although these are recurring charges to BioPharmX
Corporation's operations, management believes the measurement of
these amounts can vary considerably from period to period and
depend substantially on factors that are not a direct consequence
of operating performance that is within management's control. Thus,
management believes that excluding these charges from non-GAAP net
loss and non-GAAP net loss per share facilitates comparisons of
BioPharmX Corporation's operational performance in different
periods, as well as with similarly determined non-GAAP financial
measures of comparable companies.
Forward-Looking Statement
This press release contains
forward-looking statements related to the company's plans or
developments that involve risks, uncertainties and assumptions, and
are subject to the "safe harbor" of the Private Securities
Litigation Reform Act of 1995. These statements may be identified
by words such as "plan," "expect," "believe," "intend," "should,"
"may" or similar expressions. Important factors that could cause
actual results to differ materially than those expressed or implied
in such statements include, but are not limited to, the time
necessary to complete studies for BPX-01, the timing and enrollment
for phase 2 of the BPX-04 study, the company's ability to obtain
patent protection and defend its intellectual property and the
company's ability to regain compliance with the requirements of the
NYSE American and maintain its listing in the future. Additional
risks are set forth in the company's filings with the Securities
and Exchange Commission, including those described in the company's
Quarterly Report on Form 10-Q for the most recent fiscal quarter.
The forward-looking statements included in this news release are
made only as of the date hereof, and the company undertakes no
obligation to publicly update such statements.
BioPharmX is a registered trademark of BioPharmX, Inc.
1Caution: BPX-04 is a new drugs limited by U.S. law
to investigational use.
--TABLES TO FOLLOW --
BIOPHARMX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
(in thousands,
except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
October
31,
|
|
October
31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Revenues,
net
|
$
10
|
|
$
18
|
|
$
52
|
|
$
54
|
Cost of goods
sold
|
60
|
|
8
|
|
80
|
|
28
|
Gross
margin
|
(50)
|
|
10
|
|
(28)
|
|
26
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Research and
development
|
2,228
|
|
2,111
|
|
7,285
|
|
7,465
|
|
Sales and
marketing
|
550
|
|
546
|
|
1,717
|
|
1,929
|
|
General and
administrative
|
1,624
|
|
1,088
|
|
4,252
|
|
3,671
|
|
|
Total operating
expenses
|
4,402
|
|
3,745
|
|
13,254
|
|
13,065
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(4,452)
|
|
(3,735)
|
|
(13,282)
|
|
(13,039)
|
|
Change in fair value
of warrant liability
|
42
|
|
169
|
|
(1)
|
|
330
|
|
Other income,
net
|
20
|
|
(148)
|
|
83
|
|
(142)
|
|
Loss before provision
for income taxes
|
(4,390)
|
|
(3,714)
|
|
(13,200)
|
|
(12,851)
|
|
Provision for income
taxes
|
-
|
|
-
|
|
2
|
|
1
|
Net and
comprehensive loss
|
$
(4,390)
|
|
$
(3,714)
|
|
$(13,202)
|
|
$(12,852)
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
($0.02)
|
|
($0.05)
|
|
($0.07)
|
|
($0.17)
|
Shares used in
computing net loss per share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
191,360
|
|
79,659
|
|
187,551
|
|
73,977
|
BIOPHARMX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
October
31,
|
|
January
31,
|
|
|
|
|
2018
|
|
2018
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
3,018
|
|
$
7,576
|
|
|
Accounts receivable,
net
|
4
|
|
7
|
|
|
Inventories
|
10
|
|
10
|
|
|
Prepaid expenses and
other current assets
|
548
|
|
388
|
|
|
|
Total current
assets
|
3,580
|
|
7,981
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
135
|
|
109
|
|
|
|
Total
assets
|
$
3,715
|
|
$
8,090
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
1,387
|
|
$
1,376
|
|
|
Accrued expenses and
other current liabilities
|
1,670
|
|
1,603
|
|
|
|
Total current
liabilities
|
3,057
|
|
2,979
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
67
|
|
39
|
|
|
|
Total
liabilities
|
3,124
|
|
3,018
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
591
|
|
5,072
|
|
|
|
Total liabilities and
stockholders' equity
|
$
3,715
|
|
$
8,090
|
BIOPHARMX
CORPORATION
|
Reconciliation of
GAAP Net Loss to Non-GAAP Net Loss
|
(in thousands,
except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
October
31,
|
|
October
31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
available to common stockholders
|
$
(4,390)
|
|
$
(3,714)
|
|
$(13,202)
|
|
$(12,852)
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value
of warrant liability
|
(42)
|
|
(169)
|
|
1
|
|
(330)
|
|
Expense related to
modification of warrants
|
-
|
|
151
|
|
-
|
|
151
|
|
Stock-based
compensation expense:
|
|
|
|
|
|
|
|
|
-
|
Research and
development
|
166
|
|
131
|
|
525
|
|
397
|
|
-
|
Sales and
marketing
|
114
|
|
98
|
|
355
|
|
289
|
|
-
|
General and
administrative
|
438
|
|
236
|
|
877
|
|
730
|
|
|
Total stock-based
compensation expense
|
718
|
|
465
|
|
1,757
|
|
1,416
|
|
Total reconciling
items
|
676
|
|
447
|
|
1,758
|
|
1,237
|
Non-GAAP net loss
available to common stockholders
|
$
(3,714)
|
|
$
(3,267)
|
|
$(11,444)
|
|
$(11,615)
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
available to common stockholders
|
$
(0.02)
|
|
$
(0.05)
|
|
$
(0.07)
|
|
$
(0.17)
|
|
Reconciling
items
|
|
|
|
|
|
|
|
|
-
|
Change in fair value
of warrant liability
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Expense related to
modification of warrants
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Stock-based
compensation expense
|
-
|
|
0.01
|
|
0.01
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss
per share: basic and diluted
|
$
(0.02)
|
|
$
(0.04)
|
|
$
(0.06)
|
|
$
(0.16)
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP net loss per share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
191,360
|
|
79,659
|
|
187,551
|
|
73,977
|
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SOURCE BioPharmX Corporation