Keryx Biopharmaceuticals Inc.’s (KERX) fourth quarter net loss per share came in at 8 cents, wider than the Zacks Consensus Estimate of a loss of 6 cents. While fourth quarter net loss per share remained unchanged from the year ago period due to an increase in the number of shares, total net loss increased to $4.7 million during the reported quarter, compared to $3.8 million in the year-ago quarter.
The company recorded no revenue in the reported quarter. The wider loss in the reported quarter was mainly attributable to higher spending on research and development, which tripled to $3.3 million from the year-ago quarter.
Selling, general and administrative (SG&A) costs for the reported quarter decreased approximately 41.4% year-over-year to $1.7 million. The sharp decline was attributable to the $1.4 million decrease in non-cash compensation expense included in SG&A costs.
Yearly Results
For 2009, Keryx earned $10.5 million or 21 cents per share, 2 cents below the Zacks Consensus Estimate. The company suffered a loss of $52.9 million, or $1.17 per share from continuing operations in 2008. The change was attributable to higher revenues and lower operating expenses recorded in 2009, compared to 2008.
Total revenues in 2009 climbed to $25.2 million from $1.3 million in 2008. The sharp rise was primarily attributable to a $20.4 million rise in license revenue related to an amendment to the September 2007 sublicense agreement with Japan Tobacco Inc. and Torii Pharmaceutical Co., Ltd. (JT/Torii). Furthermore, the $3.6 million year-over-year increase in other revenue primarily related to the settlement of a dispute with the former licensor of Sulonex (sulodexide) in July 2009 also contributed to the jump in annual revenues for 2009.
Total operating expenses in 2009 came down to $15.4 million from $52.3 million in 2008. The sharp decline was primarily attributable to a $26.9 million year-over-year decrease in research and development expenses related to the termination of the development of Sulonex in addition to a $5.1 million decrease in research and development expenses towards KRX-0401 (perifosine). Furthermore, a $3.6 million reduction in non-cash compensation expense related to equity incentive grants also contributed to lower operating expenses in 2009, compared to 2008.
Keryx ended 2009 with cash, cash equivalents, interest receivable, and investment securities of $35.9 million, as opposed to $22.7 million at Dec 31, 2008.
Keryx has no products on the market. Its most advanced pipeline candidate is perifosine, for treating cancer, which was licensed from Canadian drug maker AEterna Zentaris. The drug is in late-stage development for treating multiple myeloma. Keryx intends to start a late-stage study of perifosine in colorectal cancer during the second quarter of 2010.
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