Cardium presents Q3 earnings, new initiatives

Cardium presents Q3 earnings, new initiatives

Did the To Go Brands acquisition score the company more cash?

Cardium Therapeutics (NYSE MKT: CXM) presented its financial results for the third quarter ended September 30, 2012, and reported on other recent developments including:

  • Acquisition of the business assets and product portfolio of To Go Brands® healthy nutraceutical supplement brand platform with over 25 products being developed and sold in a number of food, drug and mass channel retailers, for which net sales for the first three quarters of 2012 was approximately $2.1 million
  • Formation of the Excellagen Medical Advisory Board comprising leading practitioners, clinicians and researchers with diversified expertise in the field of advanced wound care
  • Excellagen poster presentations at the Desert Foot 9th Annual High Risk Diabetic Foot Conference
  • Advancement of international registrations for Excellagen®, including CE Mark registration to enable marketing and sale in the European Union, which is expected by early 2013
  • Excellagen featured in October 2012 Podiatry Management's Profiles in Excellence 2012
  • Selection of Excellagen as one of the top 10 podiatry innovations in 2012 by Podiatry Today publication
  • Publication of important pre-clinical research findings that have been incorporated into the treatment protocols of the Company's international Generx® ASPIRE Phase 3 registration study for patients with advanced coronary disease

Third quarter 2012 financial highlights
Cardium's research and development costs for the three months ended September 30, 2012, totaled $508,000, compared to $579,000 for the three months ended September 2011. Research and development costs for the nine months ended September 30, 2012, were $2.1 million, compared to $1.9 million for the nine months ended September 30, 2011. The increase in costs for the nine-month period was primarily due to expenses related to the commercial development of Excellagen and the Company's Generx ASPIRE clinical study.

Selling, general and administrative expenses for the three-month period ended September 30, 2012, were $1.4 million, compared to $1.2 million for the three months ended September 30, 2011. For the nine months ended September 30, 2012, selling, general and administrative expenses were $4.4 million, compared to $3.6 million for the nine months ended September 30, 2011. The increase in selling, general and administrative expenses for the nine-month period was primarily due to expenses related to the costs associated with the market introduction of Excellagen and preparations to support and facilitate strategic partnering activities, and for Cardium's nutraceutical initiative, which served as the catalyst for Cardium's recent acquisition of the business assets of To Go Brands, Inc., which includes a portfolio of more than 25 products sold through mass, food and drug channels at retailers including Whole Foods®, CVS®, Kroger®, GNC®, Jewel-Osco®, Ralph's Supermarkets®, Meijr®, and the Vitamin Shoppe®, and from the company's web-based store.

Cardium's Quarterly Report on Form 10-Q filed with the SEC presents unaudited pro forma consolidated financial information which includes To Go Brands for the period ended September 30, 2012 and 2011. The pro forma financial information includes net sales of To Go Brands for the nine months ended September 30, 2012, totaling $2.1 million, with a net loss of $0.4 million. Excluding revenue from the To Go Brands business, revenue for the nine months ended September 30, 2012, totaled $39,000, including $5,600 for the third quarter ended September 30, 2012. Since the introduction of Excellagen, the Company's marketing efforts have been focused on product sampling to key opinion leaders to support physician-based post-marketing case studies, to "seed" the use of Excellagen in the wound care market, and to further support and enhance strategic partnering activities.

For the three months ended September 30, 2012, the Company reported a net loss of $1.9 million, or $(0.02) per share, compared to a net loss of $1.6 million, or $(0.02) per share for the three months ended September 30, 2011. For the nine months ended September 30, 2012, the Company reported a net loss of $6.4 million, or $(0.06) per share, compared to a net loss for the nine months ended September 30, 2011, of $5.1 million, or $(0.06) per share. As of September 30, 2012, the Company had a total of $4.5 million in cash compared to $4.7 million in cash at the end of December 31, 2011. Working capital at September 30, 2012 was $4.8 million. As of September 30, 2012, 129.2 million shares of Cardium's common stock were outstanding.

 

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