AMICUS THERAPEUTICS, INC. (FOLD, Financial) filed Quarterly Report for the period ended 2010-03-31.
Amicus Therapeutics, Inc. has a market cap of $84.2 million; its shares were traded at around $3.05 with and P/S ratio of 1.3. FOLD is in the portfolios of Jim Simons of Renaissance Technologies LLC.
In March 2010, we sold 4.95 million shares of our common stock and warrants to purchase 1.85 million shares of common stock in a registered direct offering to a select group of institutional investors. The shares of common stock and warrants were sold in units consisting of one share of common stock and one warrant to purchase 0.375 shares of common stock at a price of $3.74 per unit. The warrants have a term of four years and are exercisable any time on or after the six month anniversary of the date they were issued, at an exercise price of $4.43 per share. The net proceeds of the offering were approximately $17.1 million after deducting the placement agency fee and all other estimated offering expenses.
Research and Development Expense. Research and development expense was $8.9 million for the three months ended March 31, 2010 representing a decrease of $3.0 million or 25% from $11.9 million for the three months ended March 31, 2009. The variance was primarily attributable to lower personnel costs associated with the workforce reduction completed in the fourth quarter of 2009, a decrease in consulting costs and a decrease in contract research and manufacturing costs due to the reduced activity within the Gaucher program.
General and Administrative Expense. General and administrative expense was $3.9 million for the three months ended March 31, 2010, representing a decrease of $1.3 million or 25% from $5.2 million for the three months ended March 31, 2009. The variance was primarily due to lower personnel costs associated with the workforce reduction completed in the fourth quarter of 2009 and a decrease in third party legal and consulting fees.
Interest Income and Interest Expense. Interest income was $0.1 million for the three months ended March 31, 2010, which represents a decrease of $0.4 million or 80% from the $0.5 million earned for the three months ended March 31, 2009. The variance in interest earned was primarily due to lower effective interest rates and decreased cash and cash equivalents balances. Interest expense was approximately $0.1 million for the three months ended March 31, 2010 and 2009. Interest expense was incurred on the secured loan obtained in June 2009.
As a result of our significant research and development expenditures and the lack of any approved products to generate product sales revenue, we have not been profitable and have generated operating losses since our inception in 2002. We have funded our operations principally with $148.7 million of proceeds from redeemable convertible preferred stock offerings, $75.0 million of gross proceeds from our initial public offering in June 2007, $50.0 million from the non-refundable license fee from the Shire collaboration agreement in November 2007 and $18.5 million of gross proceeds from the registered direct offering in March 2010. The following table summarizes our significant funding sources as of March 31, 2010:
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Amicus Therapeutics, Inc. has a market cap of $84.2 million; its shares were traded at around $3.05 with and P/S ratio of 1.3. FOLD is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
In June 2007, we completed our initial public offering (IPO) of 5,000,000 shares of common stock at a public offering price of $15.00 per share. Net cash proceeds from the initial public offering were approximately $68.1 million after deducting underwriting discounts, commissions and offering expenses payable by us. In connection with the closing of the IPO, all of Amicus shares of redeemable convertible preferred stock outstanding at the time of the offering were automatically converted into 16,112,721 shares of common stock.In March 2010, we sold 4.95 million shares of our common stock and warrants to purchase 1.85 million shares of common stock in a registered direct offering to a select group of institutional investors. The shares of common stock and warrants were sold in units consisting of one share of common stock and one warrant to purchase 0.375 shares of common stock at a price of $3.74 per unit. The warrants have a term of four years and are exercisable any time on or after the six month anniversary of the date they were issued, at an exercise price of $4.43 per share. The net proceeds of the offering were approximately $17.1 million after deducting the placement agency fee and all other estimated offering expenses.
Research and Development Expense. Research and development expense was $8.9 million for the three months ended March 31, 2010 representing a decrease of $3.0 million or 25% from $11.9 million for the three months ended March 31, 2009. The variance was primarily attributable to lower personnel costs associated with the workforce reduction completed in the fourth quarter of 2009, a decrease in consulting costs and a decrease in contract research and manufacturing costs due to the reduced activity within the Gaucher program.
General and Administrative Expense. General and administrative expense was $3.9 million for the three months ended March 31, 2010, representing a decrease of $1.3 million or 25% from $5.2 million for the three months ended March 31, 2009. The variance was primarily due to lower personnel costs associated with the workforce reduction completed in the fourth quarter of 2009 and a decrease in third party legal and consulting fees.
Interest Income and Interest Expense. Interest income was $0.1 million for the three months ended March 31, 2010, which represents a decrease of $0.4 million or 80% from the $0.5 million earned for the three months ended March 31, 2009. The variance in interest earned was primarily due to lower effective interest rates and decreased cash and cash equivalents balances. Interest expense was approximately $0.1 million for the three months ended March 31, 2010 and 2009. Interest expense was incurred on the secured loan obtained in June 2009.
As a result of our significant research and development expenditures and the lack of any approved products to generate product sales revenue, we have not been profitable and have generated operating losses since our inception in 2002. We have funded our operations principally with $148.7 million of proceeds from redeemable convertible preferred stock offerings, $75.0 million of gross proceeds from our initial public offering in June 2007, $50.0 million from the non-refundable license fee from the Shire collaboration agreement in November 2007 and $18.5 million of gross proceeds from the registered direct offering in March 2010. The following table summarizes our significant funding sources as of March 31, 2010:
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