Loxo Oncology reported fourth quarter and year-end 2014 financial results with cash and investments totaled $112.9 million.
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As of December 31, 2014, Loxo had cash and cash equivalents of $43.9 million, short-term investments of $62.4 million, and long-term investments of $6.6 million.
Aggregate cash, cash equivalents, and investments were $112.9 million as of December 31, 2014. The company expects a cash burn of $30 to $33 million in 2015.
The company believes that, based upon its current operating plan, its existing capital resources will be sufficient to fund its anticipated operations into 2017.
Year-end 2014 financial results
Cash, cash equivalents and investments totaled $112.9 million as of December 31, 2014, compared to $15 million as of December 31, 2013.
The increase reflects net proceeds of $43.2 million received from the issuance of redeemable convertible preferred stock from March through June 2014 and $72.4 million in connection with the initial public offering and concurrent private placement in August 2014.
Research and development expenses were $4.7 million for the fourth quarter of 2014 compared to $1.5 million in the fourth quarter of 2013. The increase was primarily attributable the initiation of our Phase 1a clinical trial for LOXO-101 in 2014.
Research and development expenses were $14.5 million for the year ended December 31, 2014, compared to $9.7 million for the period from May 9, 2013 (Date of Inception) to December 31, 2013. During 2014, the aggregate increase in employment costs, clinical and preclinical expense, and consulting fees was $4.1 million.
The increase in preclinical and clinical expense was largely due to the company's IND filing and subsequent initiation of the Phase 1a clinical trial for LOXO-101.
The company also recognized $2.1 million in stock-based compensation expense for the year ended December 31, 2014. Research and development expense for the period from May 9, 2013 (Date of Inception) to December 31, 2013 included $7.0 million related to the issuance of convertible preferred stock to Array.
General and administrative expenses were $2.4 million for the fourth quarter of 2014 compared to $0.4 million in the fourth quarter of 2013. The increase of $2.0 million was primarily due to increased employee headcount and related legal and financial reporting costs associated with operating as a public company in 2014.
The company also recognized $0.5 million of stock-based compensation expense in the fourth quarter of 2014.
General and administrative expenses were $6.2 million for the year ended December 31, 2014, compared to $0.6 million for the period from May 9, 2013 (Date of Inception) to December 31, 2013, due to increases in personnel and professional services associated with operating as a public company in 2014.
The company also recognized $1 million of stock-based compensation expense in 2014. ■