OPTIMER PHARMACEUTICALS INC. is a biopharmaceutical company focused on discovering developing & commercializing innovative anti-infective products for the treatment of serious infections. Optimer is currently focused on discovering developing & commercializing innovative anti-infective products in diseases of unmet needs and where current therapeutic options have limitations. Optimer has two late-stage anti-infective product candidates. OPT-80 currently in two pivotal Phase 3 clinical trials is being developed for the treatment of Clostridium difficile infection the most common hospital-acquired diarrhea. Prulifloxacin also in two pivotal Phase 3 clinical trials is an antibiotic being developed for the treatment of travelers? diarrhea a form of infectious diarrhea. The Company has also licensed technologies and therapeutic targets from The Scripps Research Institute and The Memorial Sloan-Kettering Cancer Center. These licenses form the core of Optimer's carbohydrat Optimer Pharmaceuticals Inc. has a market cap of $420 million; its shares were traded at around $12.71 with and P/S ratio of 410.4.
Highlight of Business Operations:Grant Revenues. Grant revenues for the three months ended March 31, 2009 and 2008 were $83,000 and $487,000, respectively. The decrease of $404,000, or 83%, was primarily due to the conclusion of one of two National Institutes of Health grants.
Research and Development Expense. Research and development expense for the three months ended March 31, 2009 and 2008 was $8.8 million and $6.9 million, respectively, an increase of $1.9 million, or 27%. The increase was primarily due to an increase in development and regulatory expenses related to fidaxomicin and prulifloxacin.
General and Administrative Expense. General and administrative expense for the three months ended March 31, 2009 and 2008 was $2.0 million and $1.7 million, respectively. The increase of $311,000, or 18%, was due to higher compensation expenses, including $318,000 of stock compensation expense, an increase of $77,000 over the same period in the prior year, as well as higher consulting expenses.
Interest Income and Other, net. Net interest income and other for the three months ended March 31, 2009 and 2008 was $187,000 and $581,000, respectively. The decrease was primarily due to lower average balances as well as lower interest rates on cash, cash equivalents and investments.
As of March 31, 2009, cash, cash equivalents and short-term investments totaled approximately $62.6 million as compared to $39.3 million as of December 31, 2008, an increase of approximately $23.3 million. The increase in our cash, cash equivalents and short-term investments was primarily due to the $32.9 million raised in a registered direct offering of our common stock in March 2009.
In February 2007, we regained worldwide rights to fidaxomicin from Par under a prospective buy-back agreement. We are obligated to pay Par a one-time $5.0 million milestone payment, a 5% royalty on net sales by us or our affiliates of fidaxomicin in North America and Israel, and a 1.5% royalty on net sales by us or our affiliates of fidaxomicin in the rest of the world. In addition, in the event we license our right to market fidaxomicin in the rest of the world, we will be required to pay Par a 6.25% royalty on net revenues we receive related to fidaxomicin. We are obligated to pay each of these royalties, if any, on a country-by-country basis for seven years commencing on the applicable commercial launch in each such country. In connection with the exercise of our rights under the prospective buy-back agreement, Par assigned to us a supply agreement with Biocon. Under this agreement, Biocon is obligated to supply to us our requirements of the fidaxomicin active pharmaceutical ingredients for certain markets. We may be obligated to pay a $3.0 million prepayment to Biocon, subject to future set-offs.
Highlight of Business Operations:Grant Revenues. Grant revenues for the three months ended March 31, 2009 and 2008 were $83,000 and $487,000, respectively. The decrease of $404,000, or 83%, was primarily due to the conclusion of one of two National Institutes of Health grants.
Research and Development Expense. Research and development expense for the three months ended March 31, 2009 and 2008 was $8.8 million and $6.9 million, respectively, an increase of $1.9 million, or 27%. The increase was primarily due to an increase in development and regulatory expenses related to fidaxomicin and prulifloxacin.
General and Administrative Expense. General and administrative expense for the three months ended March 31, 2009 and 2008 was $2.0 million and $1.7 million, respectively. The increase of $311,000, or 18%, was due to higher compensation expenses, including $318,000 of stock compensation expense, an increase of $77,000 over the same period in the prior year, as well as higher consulting expenses.
Interest Income and Other, net. Net interest income and other for the three months ended March 31, 2009 and 2008 was $187,000 and $581,000, respectively. The decrease was primarily due to lower average balances as well as lower interest rates on cash, cash equivalents and investments.
As of March 31, 2009, cash, cash equivalents and short-term investments totaled approximately $62.6 million as compared to $39.3 million as of December 31, 2008, an increase of approximately $23.3 million. The increase in our cash, cash equivalents and short-term investments was primarily due to the $32.9 million raised in a registered direct offering of our common stock in March 2009.
In February 2007, we regained worldwide rights to fidaxomicin from Par under a prospective buy-back agreement. We are obligated to pay Par a one-time $5.0 million milestone payment, a 5% royalty on net sales by us or our affiliates of fidaxomicin in North America and Israel, and a 1.5% royalty on net sales by us or our affiliates of fidaxomicin in the rest of the world. In addition, in the event we license our right to market fidaxomicin in the rest of the world, we will be required to pay Par a 6.25% royalty on net revenues we receive related to fidaxomicin. We are obligated to pay each of these royalties, if any, on a country-by-country basis for seven years commencing on the applicable commercial launch in each such country. In connection with the exercise of our rights under the prospective buy-back agreement, Par assigned to us a supply agreement with Biocon. Under this agreement, Biocon is obligated to supply to us our requirements of the fidaxomicin active pharmaceutical ingredients for certain markets. We may be obligated to pay a $3.0 million prepayment to Biocon, subject to future set-offs.
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