Zikani Therapeutics

Aug 17, 2022

The stock price of Eloxx Pharmaceuticals (ELOX) surged by 17.14% in the previous trading session. This is why. The stock price of Eloxx Pharmaceuticals (ELOX) surged by 17.14% in the previous trading session. Investors are responding to the company’s second-quarter results. Q2 2022 Financial Results — For the three months ended June 30, 2022, the company incurred a net loss of $10.6 million, or $0.12 per share, which included $0.7 million in stock-based compensation. For the same period in the prior year, the company incurred a net loss of $36.1 million, or $0.54 per share. Since the closing date of Eloxx’s acquisition of Zikani Therapeutics, Inc. in April 2021, the results of Zikani’s operations have been included in Eloxx’ condensed consolidated financial statements. The second quarter of 2021 included a $22.7 million expense for in process research and development (R&D) related to the Zikani acquisition. — The R&D expenses were $7.7 million for the three months ended June 30, 2022, which includes $0.3 million in stock-based compensation. For the same period in the prior year, R&D expenses were $5.7 million, which included $0.1 million of stock-based compensation. The increase was primarily related to increases in expenses related to preclinical and development activities, the continued development of ELX-02 related primarily to Cystic Fibrosis Foundation funded activities, facility and overhead expenses, and salaries and stock-based compensation. — The general and administrative (G&A) expenses were $2.6 million for the three months ended June 30, 2022, which includes $0.4 million in stock-based compensation. For the same period in the prior year, G&A expenses were $7.4 million, which included $3.9 million of stock-based compensation. The decrease was primarily related to decreases in salaries and other personnel-related costs, stock-based compensation, and facility and overhead expenses. — As of June 30, 2022, the company had unrestricted cash and cash equivalents of $30.0 million. The Hercules Term Loan Agreement contains customary affirmative and negative covenants, which among others require the Company to maintain at all times a minimum qualified cash balance. As of June 30, 2022, the Company was in compliance with all debt covenants. If the lender does not accelerate the debt upon the failure to comply with the minimum cash covenant, the company expects the current cash position the be sufficient to fund our operations into the fourth quarter of 2023. Trending on Pulse 2.0