THE WOODLANDS, Texas, May 7, 2015 (GLOBE NEWSWIRE) -- Repros Therapeutics Inc.® (Nasdaq:RPRX) today announced financial results for the first quarter ended March 31, 2015.
Net loss for the three month period ended March 31, 2015, was ($8.5) million, or ($0.35) per share, as compared to a net loss of ($8.8) million, or ($0.38) per share, for the same period in 2014. The decrease in net loss for the three month period ended March 31, 2015 as compared to the same period in 2014 was primarily due to decreased clinical development expenses related to the Company's enclomiphene product candidate, formerly known as Androxal®, partially offset by increases in clinical development expenses related to Proellex®, research and development payroll and benefits expenses and increased legal expenses.
While preparing its financial statements for the year ended December 31, 2014, the Company identified a prior period error related to its accounting for patent costs. The Company concluded this error was not material individually or in the aggregate to any of the prior reporting periods, and therefore, no restatements of previously issued financial statements were necessary. As such, revisions for the quarter ended March 31, 2014 are reflected in the financial statements herein. The quarter ended March 31, 2015 was not affected.
Research and development ("R&D") expenses decreased 3%, or approximately $248,000, to $7.3 million for the three month period ended March 31, 2015, as compared to $7.6 million for the same period in the prior year. R&D expenses related to the clinical development of enclomiphene decreased 19%, or approximately $929,000, for the three month period ended March 31, 2015 as compared to the prior year period, primarily due to the completion of all Phase 3 clinical trials, partially offset by the payment of $2.3 million to the FDA associated with the submission of our NDA for the product candidate. R&D expenses related to the clinical development of Proellex® increased 72%, or approximately $343,000, from the 2014 period to the 2015 period, due to increased expenses associated with our Phase 2B clinical trials for the treatment of uterine fibroids. Payroll and benefits expenses increased 21%, or approximately $227,000, to $1.3 million for the three month period ended March 31, 2015 as compared to $1.1 million for the same period in the prior year. Included in payroll and benefits expense is a charge for non-cash stock-based compensation of $574,000 for the three month period ended March 31, 2015 as compared to $479,000 for the same period in the prior year. Additionally, salaries for the three month period ended March 31, 2015 were $579,000 as compared to $480,000 for the same period in the prior year. Operating and occupancy expenses increased 11%, or approximately $111,000, to $1.1 million for the three month period ended March 31, 2015 as compared to $1.0 million for the same period in the prior year, primarily due to increased legal expenses.
General and administrative ("G&A") expenses decreased 2%, or approximately $21,000, to $1.2 million for the three month period ended March 31, 2015 as compared to $1.2 million for the same period in the prior year. Payroll and benefits expense increased 1%, or approximately $7,000, to $743,000 for the three month period ended March 31, 2015 as compared to $736,000 for the same period in the prior year. Included in payroll and benefits expense is a charge for non-cash stock based compensation expense of $448,000 for the three month period ended March 31, 2015 as compared to $441,000 for the same period in the prior year. Additionally, salaries for the three month period ended March 31, 2015 were $255,000 as compared to $247,000 for the same period in the prior year. G&A operating and occupancy expense decreased 6%, or approximately $28,000, to $462,000 for the three month period ended March 31, 2015 as compared to $490,000 for the same period in the prior year primarily due to a decrease in legal expenses.
Interest income decreased to $1,000 for the three month period ended March 31, 2015 as compared to $2,000 for the same period in the prior year. The decrease for the three month period ended March 31, 2015 as compared to the same period in the prior year was primarily due to decreased cash balances.
The Company had cash and cash equivalents of $37.9 million as of March 31, 2015 as compared to $46.6 million as of December 31, 2014. Net cash of approximately $8.8 million and $7.9 million was used in operating activities during the three month periods ended March 31, 2015 and 2014, respectively. The major use of cash for operating activities for the three month period ended March 31, 2015 was to fund our clinical development programs, including $2.3 million payment to the FDA associated with the submission of our NDA for our enclomiphene product candidate, and associated administrative costs. No cash was used in investing activities during the three month period ended March 31, 2015. Cash provided by financing activities during the three month period ended March 31, 2015 was approximately $102,000 due to the receipt of that amount from a former 10% shareholder of the Company in accordance with Section 16(a) under the Securities Exchange Act of 1934, as amended.
Members of the Federal Open Market Committee raised its GDP estimate from 2.1 percent in September to 2.5 percent.
The statement noted that the jobs market "will remain strong," an upgrade from the assessment at the Oct. 31-Nov. 1 meeting that conditions "will strengthen somewhat further."
The Federal Reserve came through on a widely expected interest rate hike Wednesday following its two-day policy meeting and sharply raised its economic growth forecast for 2018.
In their decision, the central bank policymakers mostly followed the script, though they did indicate that one less hike is on the way for 2019. Two Fed presidents voted against the increase — Charles Evans of Chicago and Neel Kashkari of Minneapolis.
The move will push the target range to 1.25 percent to 1.5 percent. The rate is pegged to a wide variety of debt instruments, such as credit cards and adjustable-rate mortgages.
One of the more notable developments came from the expectations Federal Open Market Committee members set for gross domestic product next year. The committee collectively raised its GDP estimate from 2.1 percent in September to 2.5 percent.
That comes following two consecutive quarters of 3 percent growth or higher and estimates that the fourth quarter could hit that level as well.
However, the burst may be short-lived. Growth is projected to come back down to 2.1 percent in 2019 and 2 percent in 2020, though both are above the respective 2 percent and 1.8 percent forecasts three months ago.
The committee made no mention of why it expected growth to accelerate, though Chair Janet Yellen and others in past speeches have expressed some optimism that more aggressive fiscal policy could be a help. Congressional lawmakers are set to approve a tax reform package aimed at slashing the corporate tax rate and lowering the level paid by many Americans.
"Once tax cuts kick in, we should see GDP growth north of 3 percent easily," said Massud Ghaussy, senior director of advisory services at Nasdaq Advisory Solutions. "One one hand we hear all this chatter that inflation is low and is not picking up. On the other hand, when we look at real assets and financial assets, they're going through the roof."
On top of the more buoyant outlook for overall growth, Fed officials cut their estimates for the unemployment rate, to 3.9 percent in 2018 and 2019, two-tenths below the previous numbers. The 2020 rate is expected to be 4 percent, down from 4.2 percent, while the longer-run outlook remained at 4.6 percent. The current unemployment rate is 4.1 percent.
Reaching its 2 percent inflation goal, however, has remained elusive for the Fed, and that rate is not expected to be hit until 2019. The Fed's preferred gauge showed just 1.6 percent annualized growth in the latest reading.
Still, the Fed has persevered in hiking rates gradually, with this week's raise being the third quarter-point move in 2017. Projections for 2018 remained unchanged at three more increases.
"The fact that they stuck with the three rate-hike forecast sends a signal that at this point they're not ready to adopt a potentially more aggressive stance that a number of people have been talking about for next year," said Craig Bishop, lead strategist for U.S. fixed income at RBC Wealth Management. "The Fed could very well be two (rate hikes) vs. three going into next year."
There was some shifting in the FOMC's closely watched "dot plot" — a chart that depicts where each member expects the federal funds rate to be in the years ahead. There was a mildly dovish tilt to 2019, with one fewer member expecting a third hike in 2019. This was the first meeting for newly confirmed Governor Randal Quarles and was held without Stanley Fischer, who resigned as vice chairman in October for personal reasons.
In approving the hike, the committee strengthened some of the wording regarding the economy in its postmeeting statement.
The statement noted that the jobs market "will remain strong," an upgrade from the assessment at the Oct. 31-Nov. 1 meeting that conditions "will strengthen somewhat further." Later, the committee said the current stance of monetary policy is "supporting strong labor market conditions," a contrast to the language from the previous meeting that indicated "some further strengthening."
Still, the committee's indication that three hikes are on the way in 2018 is at odds with market expectations.
While this week's move was almost fully priced in, traders in the federal funds futures market indicate only two hikes next year, in March and September, according to the CME FedWatch Tool. The market is implying a funds rate of 1.83 percent at year's end, compared with 1.15 percent currently, a level that will be affected by this week's decision.
Fed officials have been stumped by the trend in financial conditions, which actually have loosened during the five rate increases the committee has approved since December 2015.
The Chicago Fed's financial conditions index hasn't been this low since 1994, and the government's benchmark 10-year yield actually has edged lower this year despite the Fed's tightening. At the same time, the stock market has roared higher, with the S&P 500 gaining more than 19 percent year to date.
MOSCOW, Aug 8 (Reuters) - The rouble slid towards its lowest level in nearly two years on Wednesday and investors sold off bonds and stocks after the Kommersant daily published what it said was the full text of a draft U.S. law detailing possible penalties against Russia.
Republican Senator Lindsey Graham, one of the measure's lead sponsors, called it "the sanctions bill from hell."
Russian market reaction was muted at the time, however, and jitters only set in on Wednesday after Kommersant's publication of the sanctions document https://www.kommersant.ru/docs/2018/t2018d140-Menendez-Russia-Sanctions-Bill.pdf which cited potential curbs on the operations of several state-owned Russian banks in the United States and restrictions on holding Russian sovereign debt.
"The rouble is hit by the sanctions theme. Even though there will be no real action until September, the signal is already there," a dealer at a major Western bank in Moscow said.
Russia's five-year credit default swaps (CDS), which reflect the cost of insuring Russian debt against default, rose to their late June high of 145, up from 133-134 earlier this week .
"There are a lot of geopolitical concerns investors have and that's being reflected in a higher risk premium on Russian assets," said Phoenix Kalen, director of emerging markets strategy, at Societe Generale in London.
"The probabilities are such that this bill is still relatively unlikely to become law and with that assumption in mind then I wouldn't expect the rouble to sell off significantly from here," Kalen added.
The U.S. measure's prospects are unclear. It would have to pass both the Senate and House of Representatives and be signed into law by President Donald Trump.
"But even so, the document clearly shows the determination to go further than before in order to cause damage for Russia," Barclays said in a note.
"The sanctions story will be one that resurfaces from time to time, especially with Republicans trying to figure out how to position themselves ahead of the mid-term elections in contrast to President Trumps position, so it is likely that we will see these bursts of pressure on Russian assets," said Societe Generale's Kalen.
Shares in Russia's largest lender Sberbank dropped to 192.50 roubles on the Kommersant report, losing more than 4 percent on the day and hovering at their lowest since mid-April.
Shares in Russia's second-largest bank VTB were also down - by 2.1 percent - underperforming the benchmark stock index MOEX which declined 0.9 percent to 2,290.5.
Russian business conglomerate Sistema saw its shares tumble by 3.6 percent, hit by the threat of targeted sanctions after Republican Representative Ileana Ros-Lehtinen said on her Twitter account on Tuesday that an investigation was underway into Sistema's chairman Vladimir Yevtushenkov for "operations in illegally annexed Crimea."
Sistema's spokesman said the company had no investments in Crimea, the Black Sea peninsula that Russia annexed from Ukraine in 2014.
For Russian treasury bonds see (Additional reporting by Karin Strohecker and Claire Milhench in London and Vladimir Abramov and Anastasia Teterevleva in Moscow Writing by Andrey Ostroukh and Andrew Osborn Editing by Alexandra Hudson and Mark Potter)
What's in store for the market? Alec Young, equity market strategist at Standard & Poor's, and Edgar Peters, chief investment officer at PanAgora Asset Management, gave their forecasts on "Morning Call."
Young told CNBC's Mark Haines that the previous quarter's results "are coming in better than expected" -- and he sees "further to go on the upside" for the remainder of 2007. As for 2008, the strategist says his peers' consensus for S&P 500 profit growth is 11%. Young declared that the S&P 500 may even be ready to "challenge the 2000 highs."
Peters agreed that the outlook is good, but pulled back from Young's exuberance, saying he is merely "somewhat, not very, optimistic." Peters said he's "worried by the macropicture," particularly inflation -- and he believes it's "highly possible" the Federal Reserve may hike rates.