Omthera Pharmaceuticals Announces First Quarter 2013 Financial Results
PRINCETON, N.J., May 28, 2013
PRINCETON, N.J., May 28, 2013 /PRNewswire/ -- Omthera Pharmaceuticals, Inc.
(Nasdaq: OMTH), an emerging specialty pharmaceutical company, today announced
its financial results for the first quarter of 2013.
Omthera Pharmaceuticals also announced today that it had entered into a
definitive merger agreement with AstraZeneca pursuant to which AstraZeneca
will acquire Omthera for $12.70 per share, or approximately $323 million. In
addition to the cash payment, each Omthera stockholder will receive one
Contingent Value Right (CVR) of up to approximately $4.70 for each share they
own, equating to $120 million, if specified milestones related to Epanova are
achieved, or if a milestone related to global net sales is achieved. This will
bring the total potential acquisition value to $443 million.
First Quarter 2013 Financial Results
oOmthera reported a net loss of $6.3 million for the first quarter of 2013,
compared to a net loss of $9.2 million for the first quarter of 2012. Net
loss applicable to common stockholders for the first quarter of 2013 was
$7.3 million, or $3.08 per common share, compared to a net loss of $10.1
million, or $6.18 per common share, for the first quarter of 2012.
oResearch & Development expenses totaled $0.4 million for the first quarter
of 2013, compared to $8.0 million for the first quarter of 2012. The
amounts for the first quarter of 2013 and 2012 include approximately $0.1
million and $0.1 million of non-cash stock-based compensation expense,
respectively. The decrease in Research & Development expenses is primarily
due to the completion in 2012 of the Phase III clinical trials associated
with Epanova, compared to current period expenses devoted largely to
moving Epanova to regulatory approval.
oGeneral & Administrative expenses totaled $1.3 million for the first
quarter of 2013, compared to $1.1 million for the first quarter of 2012.
The amounts for the first quarter of 2013 and 2012 include approximately
$0.1 million and $0.1 million of non-cash stock-based compensation
expense, respectively. The increase in General & Administrative expenses
is largely attributable to legal and consulting costs required for
intellectual property filings.
oAs of March 31, 2013, cash and cash equivalents were $14.4 million. This
amount does not include the approximate $58 million in net proceeds from
the IPO, which closed in April 2013, nor any of the $12.5 million debt
facility, which remains undrawn.
About Omthera Pharmaceuticals, Inc.
Omthera Pharmaceuticals, Inc. is an emerging specialty pharmaceutical company
focused on the development and commercialization of new therapies for
dyslipidemia and the treatment of cardiovascular disease. Epanova, currently
the Company's sole product candidate, is a late-stage, novel, omega-3 free
fatty acid composition that meaningfully reduces triglycerides, improves other
key lipid parameters and is expected to increase patient convenience with
2-gram once-a-day dosing with or without meals. Epanova is a coated soft
gelatin capsule containing a complex mixture of polyunsaturated free fatty
acids derived from fish oils, including multiple long-chain omega-3 and
omega-6 fatty acids, with EPA, DHA, and docosapentaenoic acid being the most
abundant forms of omega-3 fatty acids. The Company has completed
pharmacokinetic and Phase III clinical studies to investigate the safety and
efficacy profile of Epanova. In 2012 the Company reported positive results
from its Phase III EVOLVE and ESPRIT trials, both of which were conducted
under SPA agreements with the U.S. Food and Drug Administration. Omthera holds
worldwide rights to Epanova under a license from Chrysalis Pharma AG, a
privately held Swiss company that is the owner of the product.
This press release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. This press release
contains express or implied forward-looking statements relating to, among
other things, the proposed transaction between AstraZeneca and Omthera,
Omthera's expectations regarding the filing of its NDA for Epanova, the timing
of product approval and commercial launch and management's plans, objectives,
and strategies. These statements do not convey historical information, but
relate to predicted or potential future events that are based upon
management's current expectations. These statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
expressed or implied by such statements. In particular, such risks and
uncertainties include, but are not limited to, the Company's ability to
achieve profitability; the implementation of the Company's corporate strategy;
the Company's future financial performance and projected expenditures; the
Company's ability to enter into future collaborations with pharmaceutical
companies; the Company's product development activities, including the
preparation of its NDA for Epanova, as well as to increase capacity and
validate the manufacturing process at our suppliers and build inventory for
launch; the Company's ability to receive, and the timing of any receipt of,
regulatory approvals to develop and commercialize the Company's product
candidate; the Company's PDUFA date for Epanova; the Company's ability to
protect its intellectual property and operate its business without infringing
upon the intellectual property rights of others; the accuracy of the Company's
expectations regarding federal, state and foreign regulatory requirements; the
therapeutic benefits, effectiveness and safety of Epanova; the accuracy of the
Company's estimates of the size and characteristics of the markets that may be
addressed by Epanova; the Company's projected markets and growth in markets;
the Company's product formulation and patient needs and potential funding
sources; the Company's staffing needs; and other risk factors set forth
discussed under the heading "Risk Factors" contained in Omthera prospectus
dated April 11, 2012 filed with the Securities and Exchange Commission
pursuant to Rule 424(b) of the Securities Act of 1933, as amended, as well as
any updates to these risk factors filed from time to time in the Company's SEC
filings made pursuant to the Securities Exchange Act of 1934, as amended.
Existing and prospective investors are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date hereof.
The Company undertakes no obligation to update the information in this press
release to reflect events or circumstances after the date hereof or to reflect
the occurrence of anticipated or unanticipated events.
For more information, please visit www.omthera.com
Executive Vice President & Chief Financial Officer
Omthera Pharmaceuticals, Inc.
Condensed Statement of Operations
(In thousands, except per share data)
Three months ended
Research and development $8,049 $357
General and administrative 1,131 1,325
Total operating expenses 9,180 1,682
Operating loss (9,180) (1,682)
Other income (expense):
Interest expense, net — (4,574)
Other 6 3
Net Loss $(9,174) $(6,253)
Dividends on Preferred Stock $(909) $(1,094)
Net loss attributable to common shareholders $(10,084) $(7,348)
Net loss per share – basic and diluted $(6.18) $(3.08)
Weighted average number of shares outstanding 1,631,727 2,383,444
Condensed Balance Sheet Information
December 31, March 31,
Cash and cash equivalents $2,505 $14,421
Total assets 3,008 18,347
Working capital (2,816) (11,991)
Convertible notes — 17,600
Warrant liability, total — 4,395
Total liabilities 5,482 26,860
Convertible preferred stock 55,777 55,777
Stockholders' equity (deficit) $(58,252) $(64,290)
SOURCE Omthera Pharmaceuticals, Inc.
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