SCYNEXIS, Inc. Reports Third Quarter 2014 Financial Results

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RESEARCH TRIANGLE PARK, N.C., Nov. 13, 2014 (GLOBE NEWSWIRE) -- Drug discovery and development company SCYNEXIS, Inc. (Nasdaq:SCYX) today reported financial results for the third quarter ended September 30, 2014.

"This quarter we've taken two important steps forward in the development of SCY-078 for treatment of patients with invasive fungal infections," said Yves J. Ribeill, Ph.D., President and CEO of SCYNEXIS. "First, we are actively screening for patients and are on track to dose the first patient in our Phase 2 study of invasive Candida infections before year-end. Additionally, the recent licensing of SCY-635 to Waterstone Pharmaceutical allows us to continue to increase our focus on SCY-078 and the ongoing Phase 2 development activities of this important potential therapy."

Recent Developments

  • Initiated patient screening for enrollment in our Phase 2 clinical trial of SCY-078 for the treatment of invasive Candida infections.
  • Expect to enroll the first patient in our Phase 2 clinical trial for SCY-078 before the end of 2014.
  • Entered into an exclusive, worldwide license agreement granting Waterstone Pharmaceutical (HK Limited) rights for the development and commercialization of our proprietary compound, SCY-635, for the treatment of viral diseases in humans, as well as the option to license two additional cyclophilin inhibitors from SCYNEXIS.

2014 Third Quarter Financial Results

SCYNEXIS reported a net loss of $3.8 million, or $0.45 per diluted common share, for the third quarter of 2014, compared to a net loss of $4.0 million, or $11.79 per diluted common share, for the third quarter of 2013.[1]

Research and development expenses for the third quarter of 2014 increased to $2.5 million, compared to $1.1 million for the same period in 2013. The increase of $1.4 million was primarily due to increased costs associated with the SCY-078 Phase 2 clinical trial and the preclinical development of intravenous SCY-078.

Cash and cash equivalents totaled $34.0 million as of September 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 September 30, Nine months ended September 30,
  2014 2013 2014 2013
Revenue — related party $ 1,822 $ 1,822 $ 5,466 $ 5,466
Revenue 2,558 2,341 8,261 7,718
Total revenue 4,380 4,163 13,727 13,184
Cost of revenue 3,660 3,986 11,800 12,531
Gross profit 720 177 1,927 653
Operating expenses:        
Research and development 2,478 1,050 5,621 3,203
Selling, general and administrative 2,046 1,141 5,507 3,150
Gain on insurance recovery — — (165) —
Gain on sale of asset — (2) — (988)
Total operating expenses 4,524 2,189 10,963 5,365
Loss from operations (3,804) (2,012) (9,036) (4,712)
Other (income) expense:        
Amortization of deferred financing costs and debt discount — 982 755 2,504
Loss on extinguishment of debt — — 1,389 —
Interest expense — related party — 249 — 703
Interest expense — 46 49 142
Derivative fair value adjustment — 671 (10,080) 671
Other expense — — 10 —
Total other (income) expense: — 1,948 (7,877) 4,020
Net loss $ (3,804) $ (3,960) $ (1,159) $ (8,732)
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) —
Net loss attributable to common stockholders $ (3,804) $ (3,960) $ (2,792) $ (8,732)
Net loss per share attributable to common stockholders: [1]        
Basic $ (0.45) $ (11.79) $ (0.59) $ (25.99)
Diluted $ (0.45) $ (11.79) $ (2.59) $ (25.99)
Weighted average shares outstanding:        
Basic 8,504,785 335,938 4,703,278 335,930
Diluted 8,504,785 335,938 4,976,965 335,930
         
         
[1] The issuance of common stock and the conversion of convertible preferred stock to common stock in conjunction with our IPO in May 2014 caused a significant increase in common shares outstanding and impacted the comparability of our net loss per share calculations between 2013 and 2014 periods.
     
SCYNEXIS, INC.
UNAUDITED CONDENSED BALANCE SHEET DATA
(in thousands)
     
  September 30, 2014 December 31, 2013
Cash and cash equivalents $ 34,036 $ 1,402
Total current assets 36,798 2,953
Total assets 41,964 12,387
Total current liabilities 3,197 18,477
Total liabilities 5,822 33,339
Total convertible preferred stock — 87,157
Total stockholders' equity (deficit) 36,142 (108,109)
Total liabilities, convertible preferred stock, and stockholders' equity (deficit) 41,964 12,387 
CONTACT: Media Relations
         Heather Savelle
         MacDougall Biomedical Communications
         Tel: 781-235-3060
         E-mail: hsavelle@macbiocom.com

         SCYNEXIS, Inc.
         Chuck Osborne
         Chief Financial Officer
         Tel: 919-544-8600
         E-mail: chuck.osborne@scynexis.com

         Investor Relations
         Jillian Connell
         The Trout Group LLC
         Tel: 646-378-2956
         E-mail: jconnell@troutgroup.com
Source: SCYNEXIS, Inc.

Released November 13, 2014