Speedel says funding will last into 2008, reports CHF 25.4 million net loss for second quarter

By Jennifer Lanning Drey

Eugene, Ore., Aug. 16 - Speedel Holding Ltd. executives reiterated their previous guidance that the company has sufficient funds to finance its current pipeline through the first quarter of 2008, during a company conference call held Wednesday.

"Q2 results are on track, and the company is funded at least until the end of Q1 2008, including the potential costs associated with SPP200," said Alice Huxley, Speedel's chief executive officer, during the call.

Konrad P. Wirtz, Speedel's chief financial officer, also said, "This is a conservative statement as it reflects cash burn only, and it ignores any possible sources of income, such as for example, revenues from SPP100."

The company reported a CHF 25.4 million loss, or CHF 3.65 per basic and diluted share, for the second quarter, compared with a CHF 2.84 million loss, or CHF 2.84 per basic and diluted share, for the same period in 2005, according to a company news release.

Speedel had cash, cash equivalents and financial assets of CHF 149.1 million at June 30, compared with cash, cash equivalents and financial assets of CHF 101.1 million on Dec. 31, 2005, according to the release.

During the second and third quarters, holders of more than 90% of the company's outstanding CHF 70 million of loan notes converted their notes into Speedel shares, according to Wirtz.

The exchange resulted in a cash inflow of CHF 2.0 million during the second quarter and another CHF 13.9 million is expected in the third quarter, according to the release.

"We perceive this early conversion as proof of confidence of the group of investors who provided this convertible loan on Aug. 1, 2005, Wirtz said.

Speedel expects its cash burn of CHF 16.5 million for the second quarter to increase during the second half of the year as the company invests in its pipeline.

In particular, the company is advancing SPP100 (rasilez) for treatment of hypertension, both as a monotherapy and in co-administration with other anti-hypertensives, in diabetes patients.

SPP100 is a once-daily oral renin inhibitor that Speedel developed through phase 1 and phase 2 before Novartis exercised its license-back option in 2002.

Novartis filed a New Drug Application for SPP100 in April. The NDA includes data from more than 6,000 patients with high blood pressure.

Speedel has previously said it believes that SPP100 has a five-year lead over the next generation of renin inhibitors being developed in the industry.

The company is also considering its options for the future development of SPP200, its long-acting thrombin inhibitor designed to prevent the formation of clots in vascular grafts.

The company announced on Wednesday that it has retained all development, commercialization and marketing rights to SPP200 after Abbott Laboratories decided not to exercise its license-back option for the drug.

Speedel is a Basel, Switzerland, biopharmaceutical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.