Cerecor Inc. Reports First Quarter 2017 Financial Results
2017-05-09 08:30 ET - News Release
Cerecor Inc. Reports First Quarter 2017 Financial Results
BALTIMORE, MD--(Marketwired - May 09, 2017) - Cerecor Inc. (NASDAQ: CERC), a clinical-stage biopharmaceutical company developing treatments to make a difference in the lives of patients with neurological and psychiatric disorders, today announced its financial results for the first quarter of 2017.
"In the first quarter, we continued preparing CERC-501 for a Phase 2/3 study in major depressive disorder (MDD) and, more recently, we reported proof-of-concept data that provide additional support for developing CERC-501 as an adjunctive therapy in MDD," said Dr. Uli Hacksell, President and Chief Executive Officer. "We are also pleased that we recently completed a private offering with Armistice Capital that should allow us to complete the preparations of CERC-501 and CERC-611 for planned clinical trials and support the company's operations through 2017."
2017 Recent Highlights
Research and Development:
CERC-501
Encouraging results reported from a small proof of concept study in therapy-resistant patients with major depressive disorder, or MDD;
Three on-going external experimental Phase 2 studies continue to recruit patients.
Business and Financings:
Completed a $5 million private placement with Armistice Capital to advance our Company's research and development activities.
Due to the private placement, the Company believes it has satisfied the stockholders' equity requirement for continued listing with NASDAQ. The Company will continue to monitor the Company's ongoing compliance with the stockholders' equity requirement and, if at the time of its next periodic report the Company does not evidence compliance, the Company may be subject to delisting.
First Quarter 2017 Financial Results
Cerecor reported a net loss of $2.0 million, or $0.19 per share, for the first quarter of 2017, compared to a net loss of $5.1 million, or $0.59 per share, for the first quarter of 2016.
Grant revenue was $0.4 million for the first quarter of 2017 and consisted primarily of revenue earned from our research and development grant awarded by the National Institute on Alcohol Abuse and Alcoholism at the National Institutes of Health (the "NIAAA Grant"). This grant provides us with additional resources to continue the development of CERC-501 for the treatment of alcohol use disorder. The Company did not have grant revenue for the first quarter of 2016 as grants were awarded later in 2016.
Research and development ("R&D") expenses decreased to $1.0 million for the first quarter of 2017, compared to $2.3 million for the first quarter of 2016. This decrease was driven primarily by the completion development of our Phase 2 clinical trials for CERC-301 and CERC-501 in late 2016.
General and administrative ("G&A") expenses decreased to $1.3 million for the first quarter of 2017, compared to $2.6 million for the first quarter of 2016. This decrease was driven primarily by a reduction in executive salaries during the first quarter of 2017 and stock compensation expense of $0.6 million related to modification of stock grants in the first quarter of 2016.
As of March 31, 2017, cash and cash equivalents were $3.0 million and current liabilities were $2.7 million. On April 27, 2017, we sold additional shares of our common and preferred stock under a stock purchase agreement with Armistice Capital for gross proceeds of $5.0 million.
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