EPIRUS Biopharmaceuticals announced financial results for the fourth quarter and fiscal year ended December 31, 2014. Q4 research and development (R&D) expenses were $4.8 million, compared to $2.4 million for Q4 2013, an increase of $2.4 million.
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This increase was primarily the result of development, manufacturing and commercialization expenses related to BOW015, as well as the advancement of other pipeline products.
General and Administrative (G&A) expenses were $5.4 million for the fourth quarter of 2014 compared to $1.4 million for the fourth quarter of 2013, an increase of $4 million.
This increase was primarily driven by professional fees incurred as a result of EPIRUS becoming a publicly traded company, headcount-related costs and non-cash stock compensation expenses. It also reflects an increase for BOW015 commercialization expenses.
Other income (expense) was $(0.2) million for the fourth quarter of 2014 compared to $(3.9) million for the fourth quarter of 2013, a decrease of $3.7 million. The decrease was primarily driven by lower interest expense related to convertible notes that were converted to equity in the first half of 2014.
The net loss for the fourth quarter of 2014 was $10.4 million, compared to a net loss of $7.8 million for the fourth quarter of 2013.
Fiscal year 2014
Cash and cash equivalents totaled $21.5 million at December 31, 2014. This does not include the public offering closed in February 2015, in which the Company raised approximately $52.8 million in gross proceeds.
R&D expenses increased to $16.3 million in 2014 from $9.7 million in 2013, an increase of $6.6 million. This increase was primarily the result of development, manufacturing and commercialization expenses related to BOW015, as well as the advancement of other pipeline products.
G&A expenses increased to $23.0 million in 2014 from $4.8 million in 2013, an increase of $18.2 million. This increase was primarily driven by $5.8 million in merger-related professional fees and $1.8 million severance paid in connection with the merger.
It also reflects operational costs associated with EPIRUS becoming a publicly traded company, commercial support costs for the BOW015 launch, as well as increased headcount and non-cash stock compensation expenses.
Other income (expense) was $(2.6) million in 2014 compared to $(6.3) million in 2013, a decrease of $3.7 million. The decrease was primarily driven by lower interest expense related to convertible notes that were converted to equity in the first half of 2014.
The net loss for 2014 was $41.8 million compared to a net loss of $20.8 million for 2013. ■