Protalix BioTherapeutics Inc Reports Operating Results (10-Q)

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Aug 03, 2009
Protalix BioTherapeutics Inc (PLX, Financial) filed Quarterly Report for the period ended 2009-06-30.

ORTHODONTIX INC. is engaged in the provision of practice management services to the Affiliated Practices pursuant to long-term Administrative Services Agreements with separately organized affiliated professional associations. Under the Administrative Services Agreements they have control over all non-orthodontic functions of the PA Contractors including administrative management billing and support functions. Protalix BioTherapeutics Inc has a market cap of $536.7 million; its shares were traded at around $7.06 .

Highlight of Business Operations:

Research and development expenses were $6.2 million for the three months ended June 30, 2009, an increase of $2.2 million, or 54%, from $4.0 million for the three months ended June 30, 2008. The increase resulted primarily from the increase of $1.0 million in share based compensation, mainly due to the forfeiture of certain options granted to a former officer during the second quarter of 2008 and from the increase of approximately $900,000 in payments to consultants and subcontractors and the cost of materials associated with research and development. Such increase is mainly due to the costs incurred by us in connection with our phase III clinical trial of prGCD. The increase was partially offset by grants of $1.5 million from the Office of the Chief Scientist, or the

General and administrative expenses were $1.2 million for the three months ended June 30, 2009, a decrease of $845,000, or approximately 42%, from $2.0 million for the three months ended June 30, 2008. The decrease resulted primarily from the decrease of $311,000 in salaries and related expenses and the decrease of approximately $331,000 in share based compensation due to certain stock options that were fully expensed during 2008 and, consequently, were not expensed in the three months ended June 30, 2009.

Research and development expenses were $11.3 million for the six months ended June 30, 2009, an increase of $1.6 million, or 17%, from $9.7 million for the six months ended June 30, 2008. The increase resulted primarily from the increase of $1.3 million in costs related to consulting and subcontractors associated with research and development incurred by us in connection with our phase III clinical trial of prGCD. The increase was partially offset by grants of $2.8 million from the OCS, during the six months ended June 30, 2009, an increase of approximately $285,000 compared to grants equal to $2.5 million received from the OCS during the six months ended June 30, 2008.

General and administrative expenses were $2.4 million for the six months ended June 30, 2009, a decrease of $1.6 million, or approximately 40%, from $4.0 million for the six months ended June 30, 2008. The decrease resulted primarily from a decrease of approximately $1.0 million in share based compensation due to certain stock options that were fully expensed during 2008 and, consequently, were not expensed in the six months ended June 30, 2009.

Net cash used in operations was $9.3 million for the six months ended June 30, 2009. The net loss for the six months ended June 30, 2008 of $10.6 million was partially offset by $1.2 million of non-cash share-based compensation and $929,000 of depreciation expense. In addition, net loss was partially offset by an increase of $1.1 million due to an increase in accounts receivable. Net cash used in investing activities for the six months ended June 30, 2009 was $4.2 million and consisted primarily of purchases of property and equipment. Net cash provided from financing activities for the six months ended June 30, 2009 was approximately $8,000, consisting of exercise price paid in connection with certain exercise of stock options.

Net cash used in operations was $7.4 million for the six months ended June 30, 2008. The net loss for the six months ended June 30, 2008 of $9.3 million was partially offset by $2.2 million of non-cash share-based compensation. Net cash used in investing activities for the six months ended June 30, 2008 was $2.0 million and consisted primarily of purchases of property and equipment. Net cash used in financing activities for the six months ended June 30, 2008 was $53,000, consisting of expenses paid during such period in connection with the October 2007 underwritten offering.

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