Press release from PR Newswire
Keryx Biopharmaceuticals, Inc. Announces Fourth Quarter and Year-End 2011 Financial Results
Wednesday, February 29, 2012
Keryx Biopharmaceuticals, Inc. Announces Fourth Quarter and Year-End 2011 Financial Results16:30 EST Wednesday, February 29, 2012Keryx to Host Investor Conference Call on Thursday, March 1, 2012 at 8:30am ESTNEW YORK, Feb. 29, 2012 /PRNewswire/ -- Keryx Biopharmaceuticals, Inc. (NASDAQ: KERX), a biopharmaceutical company focused on the acquisition, development and commercialization of medically important pharmaceutical products for the treatment of life-threatening diseases, including cancer and renal disease (the "Company"), today announced its results for the fourth quarter and year ended December 31, 2011.At December 31, 2011, the Company had cash, cash equivalents, interest receivable, and investment securities of $39.5 million, as compared to $28.5 million at December 31, 2010. The net loss for the fourth quarter ended December 31, 2011 was $8.4 million, or $0.12 per share, compared to a net loss of $5.3 million, or $0.09 per share, for the comparable quarter in 2010, representing an increase in net loss of $3.1 million. The change in net loss in the fourth quarter of 2011, as compared to the fourth quarter of 2010, was primarily attributable to a $2.5 million increase in other research and development expenses, principally related to the KRX-0401 (perifosine) and Zerenex Phase 3 clinical programs. The net loss for the fourth quarter ended December 31, 2011, included $0.5 million of non-cash compensation expense related to equity incentive grants.The net loss for the year ended December 31, 2011, was $28.1 million, or $0.42 per share, compared to a net loss of $20.3 million, or $0.34 per share, for the year ended December 31, 2010, representing an increase in net loss of $7.8 million. The change in net loss in the year ended December 31, 2011, as compared to 2010, was primarily attributable to a $12.5 million increase in other research and development expenses, principally related to the KRX-0401 (perifosine) and Zerenex Phase 3 clinical programs, partially offset by $5.0 million of license revenue in the year ended December 31, 2011, related to a milestone payment from the Company's Japanese partner for Zerenex (ferric citrate), Japan Tobacco Inc. and Torii Pharmaceutical Co., Ltd., for their commencement, in April 2011, of a Phase 3 clinical program in Japan. The net loss for the year ended December 31, 2011, included $2.1 million of non-cash compensation expense related to equity incentive grants.Ron Bentsur, the Company's Chief Executive Officer, commented, "During the fourth quarter of 2011, we remained focused on our three ongoing Phase 3 studies. With the completion of our Perifosine Phase 3 study in metastatic colorectal cancer expected in March, we look forward to the top-line data release within several weeks thereafter. With respect to Zerenex, we remain on track to complete our long-term Phase 3 study in the fourth quarter of 2012." Mr. Bentsur added, "As we approach these important clinical data events, our financial position remains strong and we believe that we have sufficient capital to reach our key milestones."The Company will host an investor conference call tomorrow, Thursday, March 1, 2012, at 8:30am EST, to discuss the Company's fourth quarter and year-end 2011 financial results and provide a business outlook for 2012.In order to participate in the conference call, please call 1-877-869-3847 (U.S.), 1-201-689-8261 (outside the U.S.), call-in ID: KERYX. The audio recording of the conference call will be available for replay at http://www.keryx.com, for a period of 15 days after the call.ABOUT KERYX BIOPHARMACEUTICALS, INC. Keryx Biopharmaceuticals is focused on the acquisition, development and commercialization of medically important pharmaceutical products for the treatment of cancer and renal disease. Keryx is developing KRX-0401 (perifosine), a novel, potentially first-in-class, oral anti-cancer agent that inhibits Akt activation in the phosphoinositide 3-kinase (PI3K) pathway, and also affects a number of other key signal transduction pathways, including the JNK pathway, all of which are pathways associated with programmed cell death, cell growth, cell differentiation and cell survival. KRX-0401 is currently in Phase 3 clinical development for both refractory advanced colorectal cancer and multiple myeloma, and in Phase 1 and 2 clinical development for several other tumor types. Each of the KRX-0401 Phase 3 studies is being conducted under a Special Protocol Assessment (SPA) agreement with the FDA. Keryx is also developing Zerenex (ferric citrate), an oral, ferric iron-based compound that has the capacity to bind to phosphate and form non-absorbable complexes. The Phase 3 clinical program of Zerenex for the treatment of hyperphosphatemia (elevated phosphate levels) in patients with end-stage renal disease is being conducted pursuant to an SPA agreement with the FDA. Keryx is headquartered in New York City.Cautionary StatementSome of the statements included in this press release may be forward-looking statements that involve a number of risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The factors that could cause our actual results to differ materially are identified from time to time in our reports filed with the Securities and Exchange Commission. Any forward-looking statements set forth in this press release speak only as of the date of this press release. We do not intend to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof. This press release and prior releases are available at http://www.keryx.com. The information in our website is not incorporated by reference into this press release and is included as an inactive textual reference only.KERYX CONTACT:Lauren FischerDirector ? Investor RelationsKeryx Biopharmaceuticals, Inc.Tel: 212.531.5965E-mail: email@example.com Keryx Biopharmaceuticals, Inc.Selected Consolidated Financial Data(In Thousands, Except Share and Per Share Amounts)Statements of Operations Information (Unaudited):Three Months Ended December 31, Year Ended December 31,2011201020112010REVENUE:License revenue$ --$ --$ 5,000$ --OPERATING EXPENSES:Research and development: Non-cash compensation1872388031,236 Other research and development6,6764,14426,20913,728 Total research and development6,8634,38227,01214,964General and administrative: Non-cash compensation3412781,2891,237 Other general and administrative1,4971,3415,4485,014 Total general and administrative1,8381,6196,7376,251TOTAL OPERATING EXPENSES8,7016,00133,74921,215OPERATING LOSS(8,701)(6,001)(28,749)(21,215)OTHER INCOME: Interest and other income, net80567380764LOSS FROM CONTINUING OPERATIONS(8,621)(5,434)(28,369)(20,451)Gain from discontinued operations246120246120NET LOSS$ (8,375)$ (5,314)$ (28,123)$ (20,331)NET LOSS PER COMMON SHARE Continuing operations$ (0.12)$ (0.09)$ (0.42)$ (0.34) Discontinued operations --* --* --* --* Basic and diluted net loss per common share$ (0.12)$ (0.09)$ (0.42)$ (0.34)SHARES USED IN COMPUTING NET LOSS PER COMMON SHARE Basic 71,022,95161,266,88667,370,35458,987,854 Diluted71,022,95161,266,88667,370,35458,987,854Balance Sheet Information:December 31, 2011(Unaudited)December 31, 2010**Cash, cash equivalents, interest receivable and short-term investment securities$ 39,470$ 28,512Total assets43,48832,114Accumulated deficit(369,887)(341,764)Stockholders' equity31,04723,248* Amount less than one cent.** Condensed from audited financial statementsSOURCE Keryx Biopharmaceuticals, Inc.