Anthera Pharmaceuticals Reports 2013 Second Quarter Financial Results

    Anthera Pharmaceuticals Reports 2013 Second Quarter Financial Results

PR Newswire

HAYWARD, Calif., July 30, 2013

HAYWARD, Calif., July 30, 2013 /PRNewswire/ -- Anthera Pharmaceuticals, Inc.
(NASDAQ: ANTH), today announced financial results and business highlights for
the quarter ended June 30, 2013.

Second Quarter 2013 Financial Results:

Loss from operations decreased in the second quarter of 2013 to $7.0 million
from $16.7 million in the second quarter of 2012, and to $13.9 million for the
six months ended June 30, 2013 compared to $36.7 million for the comparable
period in 2012. The decreases in loss from operations primarily resulted from
a decrease in research and development expenses due to the Company's shift in
focus to the development of blisibimod for systemic lupus erythematosus, or
lupus, and IgA nephropathy, an orphan disease in the United States. 

Net loss for the quarter ended June 30, 2013 was $8.3 million, or $0.43 loss
per basic and diluted share, compared with a net loss of $17.6 million, or
$3.43 loss per basic and diluted share for the quarter ended June 30, 2012.
Net loss in the current quarter included a non-cash charge of $0.5 million in
unamortized note discount and debt issuance cost as a result of the Company's
successful restructuring of its debt obligations with Hercules Technology
Growth Capital. The Company reported a net loss of $15.9 million or $0.92 per
basic and diluted share for the six months ended June 30, 2013, compared with
a net loss of $38.5 million or $7.51 per basic and diluted share for the
comparable period in 2012. The decrease in net losses per basic and diluted
share in 2013 as compared to 2012 both quarterly and year-to-date were
primarily due to the result of lower loss from operations, and higher common
shares outstanding attributable to the closing of an underwritten public
offering of 8,712,119 shares of the Company's common stock in January 2013
from which the Company raised net proceeds of $42.7 million, combined with
proceeds of $2.0 million received in April 2013 through the issuance of
464,686 shares pursuant to an Equity Purchase Agreement with Lincoln Park
Capital.

As of June 30, 2013, the Company had cash, cash equivalents and short-term
investments of $48.4 million, including $10.0 million of restricted cash
placed in a cash security account to collateralize a term loan.

Recent Business Highlights from Second Quarter and Upcoming Events:

Clinical:

  oThe Company initiated its Phase 2 BRIGHT-SC study in patients with IgA
    nephropathy. The primary endpoint of the study will be a reduction in
    proteinuria at 32 weeks. The Company plans to conduct an interim analysis
    of proteinuria after all patients have completed 8 weeks of therapy
    (N=48). The interim data analysis is planned for the fourth quarter of
    this year. Secondary endpoints will include the effects of blisibimod on
    estimated Glomerular Filtration Rate (eGFR), plasma B cells, and other
    biomarkers of kidney disease.
  oAnthera completed its Open-Label Extension ("OLE") of the PEARL-SC study
    to evaluate the long-term safety of blisibimod. The analysis of certain
    biomarkers, including proteinuria, complement C3, IgG and IgM beyond the
    24 week PEARL-SC study will provide further insights on the potential
    effectiveness and safety of blisibimod. Data from the OLE study will be
    presented at an upcoming scientific conference.

Regulatory:

  oIn May, the Company met with the US FDA to discuss the IgA nephropathy
    development plan, with a specific focus on the use of proteinuria as an
    endpoint in studies of IgA nephropathy. The positive response from the US
    FDA, combined with the proteinuria data from the PEARL-SC study, provide a
    manageable path forward for the development of blisibimod.
  oIn June, the Company met with the Japanese Pharmaceuticals and Medical
    Devices Agency ("PMDA") to examine development strategies for blisibimod
    in Asia. Like the US FDA, the PMDA was receptive to proteinuria as an
    endpoint for the basis of approval. "The prevalence of IgA nephropathy is
    highest in Asia. Therefore, the concurrence between the US FDA and PMDA in
    terms of proteinuria as an endpoint provides a great deal of clarity for
    the continued global development of blisibimod for this disease," said Dr.
    Colin Hislop, Anthera's Chief Medical Officer.

Financial:

  oIn April 2013, the Company strengthened its financial position by securing
    a $20.0 million debt financing facility through a syndicate led by MidCap
    Financial SBIC, LP ("MidCap Financial"). The Company used the loan
    proceeds to repay the remaining principal of the loan agreement previously
    entered into with Hercules Technology Growth Capital. The Company also
    entered into an $18.5 million common stock purchase agreement with Lincoln
    Park Capital Fund, LLC ("LPC") a Chicago-based institutional investor.
    Upon executing the agreement, LPC made an initial purchase of $2 million
    in common stock from the Company. As of June 30, 2013, there was $16.5
    million available under the purchase agreement.
  oThe Company effectuated a 1-for-8 reverse stock split of its common stock
    on July 15, 2013, resulting in a decrease of the number of shares issued
    and outstanding from approximately 152.9 million to 19.1 million.
  oThe NASDAQ Hearings Panel has determined to allow continued listing of the
    shares of the Company on the NASDAQ Global Market, as the Company has
    regained compliance with the minimum bid price continued listing
    requirements.

About Anthera Pharmaceuticals

Anthera Pharmaceuticals is a biopharmaceutical company focused on developing
and commercializing products to treat serious diseases associated with
autoimmune disorders.

Safe Harbor Statement

Any statements contained in this press release that refer to future events or
other non-historical matters, including statements that are preceded by,
followed by, or that include such words as "estimate," "intend," "anticipate,"
"believe," "plan," "goal," "expect," "project," or similar statements, are
forward-looking statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based on Anthera's expectations as of the date of this press
release and are subject to certain risks and uncertainties that could cause
actual results to differ materially as set forth in Anthera's public filings
with the SEC, including Anthera's Annual Report on Form 10-K for the year
ended December 31, 2012 and Quarterly Report on Form 10-Q for the quarter
ended March 31, 2013. Anthera disclaims any intent or obligation to update
any forward-looking statements, whether because of new information, future
events or otherwise, except as required by applicable law.

CONTACT: Dennis Lutz of Anthera Pharmaceuticals, Inc., dlutz@anthera.com or
510.856.5598.





ANTHERA PHARMACEUTICALS, INC.

(A Development Stage Company)

CONDENSED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(unaudited)
                                Threemonthsended      Sixmonthsended

                                June 30,               June 30,
                                2013        2012        2013        2012
Operating expenses:
Research and development        $  5,265    $ 14,865    $ 10,194    $ 32,603
General and administrative      1,688       1,799       3,660       4,121
 Total operating expenses  6,953       16,664      13,854      36,724
 Loss from            (6,953)     (16,664)    (13,854)    (36,724)
operations
Other Income (expense):
Other income (expense) - net   (6)         (28)        19          (38)
Interest expense                (1,322)     (908)       (2,026)     (1,751)
 Total other (expense) -    (1,328)     (936)       (2,007)     (1,789)
net
Net loss                        $  (8,281)  $ (17,600)  $ (15,861)  $ (38,513)
(1) Net loss per basic and  $  (0.43)   $ (3.43)    $ (0.92)    $ (7.51)
diluted:
(1) Weighted-average
number of shares used in per    19,059,130  5,137,218   17,297,098  5,131,126
share calculation-basic and
diluted



(1) Common stock and per share data adjusted to reflect reverse split of stock
    effectuated on July 15, 2013.

                                             ANTHERA PHARMACEUTICALS, INC.
                                             (A Development Stage Company)
                                             BALANCE SHEET DATA
                                             (in thousands, except share data)
                                             (unaudited)
                                             June 30,           December 31,

                                             2013               2012
 Cash and cash equivalents                   $   37,304         $    19,431
 Short term investments                      $   1,142          $    5,322
 Restricted cash                             $   10,000         $    —
 Total assets                                $   50,246         $    26,445
 Total current liabilities, excluding        $   3,387          $    9,421
 current portion of notes payable
 Total notes payable                         $   19,264         $    20,550
 Deficit accumulated during development      $   (276,239)      $    (260,378)
 stage
 Total shareholders' equity (deficit)        $   27,595         $    (3,526)
 (2) Common shares outstanding               19,115,189         9,893,949



(2) Common shares outstanding data adjusted to reflect reverse split of stock
    effectuated on July 15, 2013.



SOURCE Anthera Pharmaceuticals, Inc.

Website: http://www.anthera.com