On February 7, 2019 ESSA Pharma Inc. ("ESSA" or the "Company") (TSX-V: EPI,NASDAQ: EPIX), a pharmaceutical company focused on developing novel therapies for the treatment of prostate cancer, reported financial results for the fiscal first quarter ended December 31, 2018 (Press release, ESSA, FEB 7, 2019, View Source [SID1234533140]). All references to "$" in this release refer to United States dollars, unless otherwise indicated.
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"Following the preclinical work on a select group of our next generation aniten compounds showing high potency, metabolic stability, predicted long half-lives and superior pharmaceutical properties we are on track to make a final IND candidate selection in the first calendar quarter of 2019, and enter the clinic as expeditiously as possible after our IND submission," stated David Parkinson, MD, President and CEO of ESSA. "We look forward to presenting two posters at the 2019 Genitourinary Cancers Symposium on February 14, 2019, which will be the first public presentation of preclinical data from ESSA’s new aniten compounds."
Recent Company Highlights
Otello Stampacchia, Ph.D., founder of Boston-based biotech and medical device investment firm, Omega Funds LP, was appointed to the Company’s Board of Directors in October 2018.
The Company was accepted to present a poster at AACR (Free AACR Whitepaper) Annual Meeting, March 29 – April 3, 2019 in Atlanta, GA.
The Company will present at the 31st Annual ROTH Conference, March 17-18, 2019 in Laguna Niguel, CA.
Summary Financial Results
Net Income (Loss). ESSA recorded a net loss of $2.7 million ($0.42 loss per common share based on 6,305,283 weighted average common shares outstanding) for the quarter ended December 31, 2018, compared to a net loss of $2.1 million ($1.44 loss per common share based on 1,455,094 weighted average common shares outstanding) for the quarter ended December 31, 2017, which included a gain on derivative liability of $7.3 million.
Research and Development ("R&D") expenditures. R&D expenditures for the quarter ended December 31, 2018 were $1.2 million compared to $1.0 million for the quarter ended December 31, 2017. The increases in R&D expenditures for the quarter were primarily related to ESSA’s continued focus on preclinical research related to the Company’s next-generation aniten compounds in the current period. Costs in the comparative period included termination costs in relation to ESSA’s conclusion of its Phase I clinical study of EPI-506 in September 2017.
General and administration ("G&A") expenditures. G&A expenditures for the quarter ended December 31, 2018 were $1.2 million compared to $1.0 million for the quarter ended December 31, 2017. The increases in the quarter primarily reflected increased corporate activity, resulting in increased professional fees, compensation expenses and increased share-based payments reflecting the vesting and granting of stock options.
Liquidity and Outstanding Share Capital
Cash on hand at December 31, 2018, was $12.2 million, with working capital of $9.2 million, reflecting the aggregate gross proceeds of the completed January 2018 financing, , which totalled $26 million, less operating expenses in the intervening period.
As of December 31, 2018, the Company had 6,311,098 common shares issued and outstanding, and 1,654,000 common shares issuable on the exercise of prepaid warrants at a nominal exercise price of $0.002 per common share. If all prepaid warrants are exercised, there would be approximately 7,965,098 ESSA common shares outstanding.
In addition, as of December 31, 2018 there were 474,937 common shares issuable upon the exercise of warrants and broker warrants at a weighted-average exercise price of $34.35 per ESSA common share and 911,961 ESSA common shares issuable upon the exercise of outstanding stock options at a weighted-average exercise price of $4.79 per common share.
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