Intec Pharma announced financial results for the three and twelve months ended December 31, 2017.
Article continues below
Research and Development Expenses (R&D), net, for the fourth quarter of 2017 were approximately $8.9 million, an increase of $ 6.2 million, or approximately 230%, compared to approximately $2.7 million for the fourth quarter of 2016.
R&D, net, for the year ended December 31, 2017 were approximately $24.3 million, an increase of $13.6 million, or approximately 127%, compared with approximately $10.7 million for the year ended December 31, 2016.
The increases in both periods were primarily due to increases in expenses related to the progression of the Phase 3 ACCORDANCE trial and payroll and related expenses mostly due to an increase in headcount and salary raises.
In addition, the company had a decrease in the Israeli Innovation Authority's (IIA) participation in R&D for 2017, as the company declined to accept the IIA grant for 2017 due to its conditions and also repaid part of the IIA grants the company had received in 2016 following IIA's notice for repayment.
General and administrative expenses for the fourth quarter of 2017 were approximately $1.6 million, an increase of $0.8 million, or approximately 100%, compared to approximately $0.8 million for the fourth quarter of 2016.
General and administrative expenses for the year ended December 31, 2017 were approximately $5.1 million, an increase of $2.0 million, or approximately 65%, compared to approximately $3.1 million for 2016.
The increases in both periods were primarily due to the increase in professional services, share-based compensation to employees and payroll and related expenses primarily related to the creation of a subsidiary in the United States and hiring of management personnel in the United States during 2017.
For the year ended December 31, 2017, Intec had financial income from interest on cash equivalents and bank deposits of approximately $286,000 and foreign currency exchange income of approximately $72,000, which were partially offset by financial expenses from a change in fair value of derivative financial instruments of approximately $184,000.
In 2016, the company had financial income of $466,000, which were partially offset by financial expenses of $16,000.
During 2017 and 2016, Intec did not generate taxable income in Israel. However, in 2017 the company incurred tax expenses of $29,000 through its U.S. subsidiary.
Comprehensive loss attributable to common stockholders for the fourth quarter of 2017 was approximately $10.2 million, an increase of $6.6 million, or approximately 183%, compared to the company's comprehensive loss for the fourth quarter of 2016 of approximately $3.6 million.
The comprehensive loss attributable to common stockholders for the full-year 2017 was approximately $29.1 million, an increase of $15.7 million, or approximately 117%, compared to the company's comprehensive loss for 2016 of approximately $13.4 million.
Loss per share attributed to common stockholders for the fourth quarter of 2017 was $(0.39) compared with $(0.32) for the fourth quarter of 2016. Loss per share attributed to common stockholders for the full-year 2017 was $(1.65) compared with $(1.17) for 2016.
As of December 31, 2017, the company had cash and cash equivalents and financial assets at fair value through profit or loss of approximately $55.2 million compared with approximately $64.7 million at September 30, 2017.
The net cash used of $9.5 million during the fourth quarter of 2017 was primarily for the Phase 3 ACCORDANCE trial and the construction of a commercial-scale Accordion Pill production line.
Net cash used in operating activities was approximately $22.1 million for full-year 2017 compared to approximately $12.0 million in 2016.
This increase primarily resulted from an increase in comprehensive loss of approximately $15.7 million, which was partially offset by a decrease in changes in operating asset and liability items of approximately $4.7 million.
Net cash used in investing activities was approximately $4.7 million for full-year 2017 compared with approximately $4.7 million net cash provided by investing activities for 2016.
The change resulted primarily from the reductions in short-term deposits as they matured in the amount of $5.0 million in 2016 and an increase in purchase of property and equipment in the amount of approximately $4.5 million.
During 2017, the company raised approximately $10.0 million in gross proceeds from a private placement of ordinary shares and approximately $57.5 million in gross proceeds from an underwritten public offering of ordinary shares on the NASDAQ Capital Market. ■