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Dipexium Pharmaceuticals Reports Third Quarter 2016 Financial Results

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NEW YORK, Nov. 10, 2016 /PRNewswire/ -- Dipexium Pharmaceuticals, Inc. (Nasdaq: DPRX), a late-stage pharmaceutical company focused on the development and commercialization of Locilex® (pexiganan cream 0.8%), a novel, broad-spectrum, topical antibiotic peptide, today reported financial results for the quarter ended September 30, 2016. 

Financial Results for the Third Quarter of 2016

For the three months ended September 30, 2016, Dipexium reported a net loss of $4.6 million, compared to a net loss of $5.0 million for the three months ended September 30, 2015, a decrease of $0.4 million.  The change was primarily due to a $0.5 million decrease in manufacturing relating expenses offset by a $0.1 million increase in Phase 3 clinical trial related expenses.

For the nine months ended September 30, 2016, Dipexium reported a net loss of $15.9 million, compared to a net loss of $13.2 million for the nine months ended September 30, 2015, an increase of $2.7 million. This change was primarily due to a $2.9 million increase in research and development expenses partially offset by a $0.2 million decrease in selling, general, and administrative expenses. The increase in research and development expenses were due to $2.9 million of increased Phase 3 trial enrollment and related clinical trial expenses. The decrease in general and administrative expenses is primarily attributable to a decrease of $0.1 million for stock-based compensation expenses and a $0.1 million decrease in marketing related costs.

Net cash used in operating activities for the nine months ended September 30, 2016 was $13.4 million versus $10.6 million for the nine months ended September 30, 2015.   The increase in cash used in operating activities is primarily attributable to increased research and development expenses associated with increased Phase 3 trial enrollment and related clinical trial expenses.   

At September 30, 2016, the Company had cash and short-term investments of $18.8 million, compared to $32.2 million at December 31, 2015. The Company's cash balance is currently anticipated to fund operations through 2017.

About Dipexium Pharmaceuticals

Dipexium Pharmaceuticals, Inc. (NASDAQ: DPRX) is a late-stage pharmaceutical company focused on the development and commercialization of Locilex (pexiganan cream 0.8%), a novel, broad-spectrum, topical antibiotic peptide. For more information, please visit www.dipexiumpharmaceuticals.com.

Forward-Looking Statements

This press release may contain, in addition to historical information, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements relating to our anticipated clinical and regulatory development of our product candidate, including development for the European market and development of an intravenous formulation; our cash position; cash flows; business strategies and initiatives; and other matters. We have based these forward-looking statements on the assumptions, expectations and projections about future events that we hold at the time the statements are made. We use words like "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements.

Investors should consider the information contained in our filings with the U.S. Securities and Exchange Commission (the "SEC"), including our Annual Report on Form 10-K, especially in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections, our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Other unknown or unpredictable factors also could have material adverse effects on our future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our beliefs at the time the statements are made. We do not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, nor any other information provided in a conference call, webcast, news release, SEC filing or website.

 

DIPEXIUM PHARMACEUTICALS, INC.






CONDENSED CONSOLIDATED BALANCE SHEETS














September 30,


December 31,




2016


2015

ASSETS



(unaudited)









CURRENT ASSETS






Cash 



$      7,838,962


$      5,234,953

Short-term Investments



10,995,395


26,977,362

Prepaid Expenses



169,685


146,145

TOTAL CURRENT ASSETS



19,004,042


32,358,460













OTHER ASSETS






Security Deposit



56,630


49,385

TOTAL OTHER ASSETS



56,630


49,385







TOTAL ASSETS



$    19,060,672


$    32,407,845







LIABILITIES AND SHAREHOLDERS' EQUITY












CURRENT LIABILITIES






Accounts Payable and Accrued Expenses



$         890,506


$      1,606,307

TOTAL LIABILITIES



890,506


1,606,307







COMMITMENTS AND CONTINGENCIES












SHAREHOLDERS' EQUITY






   Common Stock: $.001 par value, 30,000,000 shares authorized, 10,399,642 and 10,301,114




       shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively

10,399


10,301

   Additional paid-in capital



75,077,642


71,852,692

   Accumulated deficit



(56,917,875)


(41,061,455)

TOTAL SHAREHOLDERS' EQUITY 



18,170,166


30,801,538







TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 


$    19,060,672


$    32,407,845

 

 

DIPEXIUM PHARMACEUTICALS, INC.









CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 







(Unaudited)











































      Three Months Ended September 30,


    Nine Months Ended September 30,




2016


2015


2016


2015

REVENUES



$                       -


$                    -


$                    -


$                    -











EXPENSES




















OPERATING EXPENSES










Research and Development Expenses



3,113,919


3,457,165


10,398,499


7,456,829

Selling, General and Administrative Expenses


1,530,340


1,571,511


5,499,778


5,794,195











TOTAL OPERATING EXPENSES



4,644,259


5,028,676


15,898,277


13,251,024











LOSS FROM OPERATIONS



(4,644,259)


(5,028,676)


(15,898,277)


(13,251,024)











Interest Income



12,829


9,359


41,857


12,567











NET LOSS



$         (4,631,430)


$      (5,019,317)


$    (15,856,420)


$    (13,238,457)











LOSS PER SHARE










Basic and diluted net loss per common share



$                  (0.45)


$               (0.49)


$               (1.53)


$               (1.45)











Weighted average common shares outstanding basic and diluted


10,359,493


10,274,718


10,338,378


9,139,310

 

Company Contacts:

David Garrett
Vice President, Finance & Corporate Development
Dipexium Pharmaceuticals, Inc.
212-269-2834
info@dipexium.com

Lisa Wilson
Investor Relations
In-Site Communications, Inc.
212-452-2793
lwilson@insitecony.com

© 2016 Dipexium Pharmaceuticals, Inc.  All rights reserved.

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SOURCE Dipexium Pharmaceuticals, Inc.