MENLO PARK, Calif., Dec. 6, 2018 /PRNewswire/ -- BioPharmX
Corporation (NYSE American: BPMX), a specialty pharmaceutical company focused on developing innovative medical dermatology
products, today reports financial results for the quarter ended Oct. 31, 2018.
During the quarter, newly appointed BioPharmX President and CEO Dr. David S. Tierney commenced
a strategic review of the business and took steps to streamline strategy and focus on the company's core products to maximize
shareholder value.
Key Highlights
BioPharmX made progress on several fronts:
- In October 2018, BioPharmX initiated its Phase 2b clinical
trial of BPX-041, a 1% topical minocycline gel formulation for the treatment of moderate-to-severe papulopustular
rosacea. The trial is a randomized, double-blind, vehicle-controlled study in subjects at least 18 years old with 15 to 70
inflammatory lesions and an investigator's global assessment (IGA) score of 3 or 4 (moderate or severe) at baseline. The
primary endpoint for the multi-center study is an absolute mean change in the number of inflammatory lesions from baseline to
week 12. The company anticipates study completion in mid-2019.
- In November 2018, the company reduced its operating costs by executing a 33% reduction in
workforce and discontinuing non-core development programs. As part of this more focused strategy, the company divested its
molecular iodine technology, including the dietary supplement product, VI2OLET, thereby allowing the company to
focus on its dermatology product candidates.
- In November 2018, the company entered into agreements with certain stockholders to amend
certain of its existing warrants to reduce the exercise price per share and to provide for the issuance of new warrants, in
exchange for the stockholders' agreement to exercise their existing warrants for cash, resulting in net proceeds to the company
of approximately $2.8 million. These proceeds are not reflected in the cash and cash equivalents
balance as of Oct. 31, 2018 in the financial tables below.
- In November 2018, NYSE Regulation accepted the company's plan to regain compliance with the
NYSE American continued listing standards set forth in the NYSE American Company Guide, and has granted a plan period through
Sept. 24, 2019.
"The quarter was important for BioPharmX because we made progress in improving our financial stability and advancing our
product pipeline," said Dr. Tierney. "Our operating cost reduction will enable BioPharmX to dedicate more resources to our
product candidates."
Third Quarter Financial Results
For the third quarter ended Oct. 31, 2018, total operating expenses were $4.4 million, compared with total operating
expenses of $3.7 million in the prior fiscal year's third quarter.
Net loss for the quarter ended Oct. 31, 2018 was $4.4 million, or $0.02 per share, compared with a
net loss of $3.7 million, or $0.05 per share, during the prior fiscal year's third quarter.
Excluding stock-based compensation expense and the impact of the change in fair value of warrant liability, non-GAAP net loss
for the quarter ended Oct. 31, 2018 was $3.7 million, or $0.02 per share of common stock. During the
third quarter of the prior fiscal year, the comparable non-GAAP net loss was $3.3 million, or $0.04 per share.
Cash and cash equivalents as of Oct. 31, 2018, were $3.0 million.
About BioPharmX® Corporation
BioPharmX Corporation (NYSE American: BPMX) is a specialty pharmaceutical company, developing prescription products
through proprietary platform technologies for dermatology indications. To learn more about BioPharmX, visit www.BioPharmX.com.
Use of Non-GAAP Measures
BioPharmX Corporation has supplemented its reported GAAP financial information with non-GAAP measures, non-GAAP net
loss, and non-GAAP net loss per share, that do not include stock-based compensation expense, the impact of changes in the fair
value of the warrant liability and expense related to the modification of warrants. The presentation of this additional
information is not meant to be considered in isolation or as a substitute for results prepared in accordance with GAAP.
Management uses the non-GAAP information internally to evaluate its ongoing business, operational performance and cash
requirements and believes these non-GAAP measures are useful to investors as they provide the same basis for evaluating BioPharmX
Corporation's performance as applied by management.
BioPharmX Corporation has provided a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP
financial measure. These non-GAAP measures may be different from non-GAAP measures used by other companies, including peer
companies, and therefore, comparability may be limited. In addition, these non-GAAP measures are not based on any comprehensive
set of accounting rules or principles. BioPharmX Corporation believes that non-GAAP measures have limitations in that they do not
reflect all of the amounts associated with its results of operations as determined in accordance with GAAP and that these
measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with
GAAP. BioPharmX Corporation encourages investors and others to review the company's financial information in its entirety and not
rely on a single financial measure.
Stock-based compensation expenses represent non-cash charges related to equity awards granted by BioPharmX Corporation. The
change in fair value of the warrant liability results from the periodic revaluing of the warrant liability. In the third
quarter of fiscal year 2018, BioPharmX Corporation amended certain warrants resulting in a one-time charge. This amount is
excluded from its non-GAAP net loss and non-GAAP net loss per share because it is not reflective of ongoing operating results in
the period incurred. Although these are recurring charges to BioPharmX Corporation's operations, management believes the
measurement of these amounts can vary considerably from period to period and depend substantially on factors that are not a
direct consequence of operating performance that is within management's control. Thus, management believes that excluding these
charges from non-GAAP net loss and non-GAAP net loss per share facilitates comparisons of BioPharmX Corporation's operational
performance in different periods, as well as with similarly determined non-GAAP financial measures of comparable companies.
Forward-Looking Statement
This press release contains forward-looking statements related to the company's plans or developments that involve
risks, uncertainties and assumptions, and are subject to the "safe harbor" of the Private Securities Litigation Reform Act of
1995. These statements may be identified by words such as "plan," "expect," "believe," "intend," "should," "may" or similar
expressions. Important factors that could cause actual results to differ materially than those expressed or implied in such
statements include, but are not limited to, the time necessary to complete studies for BPX-01, the timing and enrollment for
phase 2 of the BPX-04 study, the company's ability to obtain patent protection and defend its intellectual property and the
company's ability to regain compliance with the requirements of the NYSE American and maintain its listing in the future.
Additional risks are set forth in the company's filings with the Securities and Exchange Commission, including those described in
the company's Quarterly Report on Form 10-Q for the most recent fiscal quarter. The forward-looking statements included in this
news release are made only as of the date hereof, and the company undertakes no obligation to publicly update such
statements.
BioPharmX is a registered trademark of BioPharmX, Inc.
1Caution: BPX-04 is a new drugs limited by U.S. law to investigational use.
--TABLES TO FOLLOW --
BIOPHARMX CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
(in thousands, except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
October 31,
|
|
October 31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Revenues, net
|
$ 10
|
|
$ 18
|
|
$ 52
|
|
$ 54
|
Cost of goods sold
|
60
|
|
8
|
|
80
|
|
28
|
Gross margin
|
(50)
|
|
10
|
|
(28)
|
|
26
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
Research and development
|
2,228
|
|
2,111
|
|
7,285
|
|
7,465
|
|
Sales and marketing
|
550
|
|
546
|
|
1,717
|
|
1,929
|
|
General and administrative
|
1,624
|
|
1,088
|
|
4,252
|
|
3,671
|
|
|
Total operating expenses
|
4,402
|
|
3,745
|
|
13,254
|
|
13,065
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
(4,452)
|
|
(3,735)
|
|
(13,282)
|
|
(13,039)
|
|
Change in fair value of warrant liability
|
42
|
|
169
|
|
(1)
|
|
330
|
|
Other income, net
|
20
|
|
(148)
|
|
83
|
|
(142)
|
|
Loss before provision for income taxes
|
(4,390)
|
|
(3,714)
|
|
(13,200)
|
|
(12,851)
|
|
Provision for income taxes
|
-
|
|
-
|
|
2
|
|
1
|
Net and comprehensive loss
|
$ (4,390)
|
|
$ (3,714)
|
|
$(13,202)
|
|
$(12,852)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
|
|
|
|
|
|
|
|
|
Basic and diluted
|
($0.02)
|
|
($0.05)
|
|
($0.07)
|
|
($0.17)
|
Shares used in computing net loss per share
|
|
|
|
|
|
|
|
|
Basic and diluted
|
191,360
|
|
79,659
|
|
187,551
|
|
73,977
|
BIOPHARMX CORPORATION
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
October 31,
|
|
January 31,
|
|
|
|
|
2018
|
|
2018
|
Assets
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
$ 3,018
|
|
$ 7,576
|
|
|
Accounts receivable, net
|
4
|
|
7
|
|
|
Inventories
|
10
|
|
10
|
|
|
Prepaid expenses and other current assets
|
548
|
|
388
|
|
|
|
Total current assets
|
3,580
|
|
7,981
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
135
|
|
109
|
|
|
|
Total assets
|
$ 3,715
|
|
$ 8,090
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
$ 1,387
|
|
$ 1,376
|
|
|
Accrued expenses and other current liabilities
|
1,670
|
|
1,603
|
|
|
|
Total current liabilities
|
3,057
|
|
2,979
|
|
|
|
|
|
|
|
|
Long-term liabilities
|
67
|
|
39
|
|
|
|
Total liabilities
|
3,124
|
|
3,018
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
591
|
|
5,072
|
|
|
|
Total liabilities and stockholders' equity
|
$ 3,715
|
|
$ 8,090
|
BIOPHARMX CORPORATION
|
Reconciliation of GAAP Net Loss to Non-GAAP Net Loss
|
(in thousands, except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
October 31,
|
|
October 31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss available to common stockholders
|
$ (4,390)
|
|
$ (3,714)
|
|
$(13,202)
|
|
$(12,852)
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of warrant liability
|
(42)
|
|
(169)
|
|
1
|
|
(330)
|
|
Expense related to modification of warrants
|
-
|
|
151
|
|
-
|
|
151
|
|
Stock-based compensation expense:
|
|
|
|
|
|
|
|
|
-
|
Research and development
|
166
|
|
131
|
|
525
|
|
397
|
|
-
|
Sales and marketing
|
114
|
|
98
|
|
355
|
|
289
|
|
-
|
General and administrative
|
438
|
|
236
|
|
877
|
|
730
|
|
|
Total stock-based compensation expense
|
718
|
|
465
|
|
1,757
|
|
1,416
|
|
Total reconciling items
|
676
|
|
447
|
|
1,758
|
|
1,237
|
Non-GAAP net loss available to common stockholders
|
$ (3,714)
|
|
$ (3,267)
|
|
$(11,444)
|
|
$(11,615)
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss available to common stockholders
|
$ (0.02)
|
|
$ (0.05)
|
|
$ (0.07)
|
|
$ (0.17)
|
|
Reconciling items
|
|
|
|
|
|
|
|
|
-
|
Change in fair value of warrant liability
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Expense related to modification of warrants
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Stock-based compensation expense
|
-
|
|
0.01
|
|
0.01
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per share: basic and diluted
|
$ (0.02)
|
|
$ (0.04)
|
|
$ (0.06)
|
|
$ (0.16)
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing non-GAAP net loss per share
|
|
|
|
|
|
|
|
|
Basic and diluted
|
191,360
|
|
79,659
|
|
187,551
|
|
73,977
|
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SOURCE BioPharmX Corporation