SCYNEXIS, Inc. Reports Second Quarter 2014 Financial Results
RESEARCH TRIANGLE PARK, N.C., Aug. 13, 2014 (GLOBE NEWSWIRE) -- Drug discovery and development company SCYNEXIS, Inc. (Nasdaq:SCYX) today reported financial results for the second quarter ended June 30, 2014.
"The completion of our initial public offering this past quarter was a significant financial accomplishment for our team and an important achievement for us as a company," said Yves J. Ribeill, Ph.D., President and CEO of SCYNEXIS. "The IPO proceeds allow us to advance SCY-078 into Phase 2 clinical development. SCY-078 is under development as both an intravenous and oral treatment for the serious and often life-threatening fungal infection invasive Candidiasis. Candida is a pathogen that is becoming increasingly resistant to the currently approved treatments."
Recent Developments
- The protocol for our planned Phase 2 study for oral SCY-078 as step down therapy in invasive candidiasis was finalized.
- We entered into an agreement with a clinical research organization to conduct our Phase 2 study of oral SCY-078.
2014 Second Quarter Financial Results
SCYNEXIS reported net income of $2.2 million for the second quarter of 2014, compared to a net loss of $2.7 million for the second quarter of 2013. The net income for the second quarter of 2014 was primarily due to a non-cash gain of $7.3 million from a derivative fair value adjustment, largely offset by an operating loss of $3.5 million and a non-cash $1.4 million loss on extinguishment of debt. Net income attributable to common stockholders for the second quarter of 2014 was $2.0 million. This compares to a net loss attributable to common stockholders of $2.7 million for the second quarter of 2013.
Cash and cash equivalents totaled $38.4 million as of June 30, 2014. There was no outstanding debt as of June 30, 2014.
About SCYNEXIS, Inc.
SCYNEXIS is a pharmaceutical company committed to the discovery, development and commercialization of novel anti-infectives to address significant unmet therapeutic needs. We are developing our lead product candidate, SCY-078, as an oral and intravenous (IV) drug for the treatment of serious and life-threatening invasive fungal infections in humans. For more information, visit www.scynexis.com.
Forward Looking Statement
Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Risks are described more fully in SCYNEXIS's filings with the Securities and Exchange Commission, including without limitation its most recent Quarterly Report on Form 10-Q and other documents subsequently filed with or furnished to the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made. SCYNEXIS undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
| SCYNEXIS, INC. | ||||
| UNAUDITED CONDENSED STATEMENTS OF OPERATIONS | ||||
| (in thousands, except share and per share data) | ||||
| Three months ended June 30, | Six months ended June 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Revenue — related party | $ 1,822 | $ 1,822 | $ 3,644 | $ 3,644 |
| Revenue | 2,820 | 2,404 | 5,703 | 5,377 |
| Total revenue | 4,642 | 4,226 | 9,347 | 9,021 |
| Cost of revenue | 4,180 | 4,397 | 8,140 | 8,545 |
| Gross profit | 462 | (171) | 1,207 | 476 |
| Operating expenses: | ||||
| Research and development | 1,823 | 999 | 3,143 | 2,153 |
| Selling, general and administrative | 2,255 | 918 | 3,461 | 2,009 |
| Gain on insurance recovery | (165) | -- | (165) | -- |
| Gain on sale of asset | -- | (472) | -- | (986) |
| Total operating expenses | 3,913 | 1,445 | 6,439 | 3,176 |
| Loss from operations | (3,451) | (1,616) | (5,232) | (2,700) |
| Other (income) expense: | ||||
| Amortization of deferred financing costs and debt discount | 219 | 813 | 755 | 1,522 |
| Loss on extinguishment of debt | 1,389 | -- | 1,389 | -- |
| Interest expense — related party | -- | 228 | -- | 454 |
| Interest expense | 5 | 46 | 49 | 96 |
| Derivative fair value adjustment | (7,297) | -- | (10,080) | -- |
| Other expense | -- | -- | 10 | -- |
| Total other (income) expense: | (5,684) | 1,087 | (7,877) | 2,072 |
| Net income (loss) | $ 2,233 | $ (2,703) | $ 2,645 | $ (4,772) |
| Deemed dividend for beneficial conversion feature on Series D-2 preferred stock | -- | -- | (909) | -- |
| Deemed dividend for antidilution adjustments to convertible preferred stock | -- | -- | (214) | -- |
| Accretion of convertible preferred stock | -- | -- | (510) | -- |
| Allocation of net income to convertible preferred stockholders | (262) | -- | (303) | -- |
| Net income (loss) attributable to common stockholders | $ 1,971 | $ (2,703) | $ 709 | $ (4,772) |
| Per share information: | ||||
| Net income (loss) per common share, basic | $ 0.38 | $ (8.05) | $ 0.26 | $ (14.21) |
| Net loss per common share, diluted | $ (0.98) | $ (8.05) | $ (3.08) | $ (14.21) |
| SCYNEXIS, INC. | ||
| UNAUDITED CONDENSED BALANCE SHEET DATA | ||
| (in thousands) | ||
| June 30, 2014 | December 31, 2013 | |
| Cash and cash equivalents | $ 38,425 | $ 1,402 |
| Total current assets | 40,802 | 2,953 |
| Total assets | 45,959 | 12,387 |
| Current portion of long-term debt | -- | 15,000 |
| Derivative liability | -- | 12,237 |
| Total liabilities | 6,536 | 33,339 |
| Total convertible preferred stock | -- | 87,157 |
| Total stockholders' equity (deficit) | 39,423 | (108,109) |
| Total liabilities, convertible preferred stock, and stockholders' equity (deficit) | 45,959 | 12,387 |
CONTACT: SCYNEXIS, Inc.
Chuck Osborne
Chief Financial Officer
Tel: 919-544-8600
E-mail: chuck.osborne@scynexis.com
Investor/Media Relations
Heather Savelle
MacDougall Biomedical Communications
781-235-3060
hsavelle@macbiocom.com
Source: SCYNEXIS, Inc.
Released August 13, 2014