ONCOGENEX PHARMACEUTICALS INC. - COMMON SHARES (OGXI, Financial) filed Amended Quarterly Report for the period ended 2010-03-31.
Oncogenex Pharmaceuticals Inc. - Common Shares has a market cap of $121.42 million; its shares were traded at around $19.11 with and P/S ratio of 4.75.
Under the Collaboration Agreement with Teva, we are required to spend $30 million towards development of OGX-011 which will include personnel costs for certain development activities. Teva is required to fund all other expenses under the Clinical Development Plan. A total of $5.3 million of costs incurred by the Company have been applied against the Companys $30 million funding commitment, resulting in a remaining funding commitment of $24.6 million at March 31, 2010. We expect compensation for our full time equivalent employee costs of between $1.5 and $2.5 million per year from 2010 to 2012, which will be applied against our funding commitment, or reimbursed to us from Teva on a cash basis. We expect to incur the remaining costs associated with the Clinical Development Plan over the next three years.
A majority of the Companys expenditures to date have been related to the development of OGX-011. Until July 2, 2008, OGX-011 was being co-developed with Isis and R&D expenses for OGX-011 were shared on the basis of 65% OncoGenex and 35% Isis. On July 2, 2008, OncoGenex and Isis amended their agreement to provide for unilateral development of OGX-011 by OncoGenex. In connection with the Collaboration Agreement and pursuant to the terms of agreements between the Company and Isis relating to OGX-011, the Company accrued a payment of $10 million to Isis, which was included in R&D expenses in 2009. The Company also accrued a payment of approximately $333,333 to UBC pursuant to the terms of their license agreement relating to OGX-011, which was also included in R&D expenses in December 2009. Amounts owing to Isis and UBC at December 31, 2009 were paid in the first quarter of 2010.
In June 2009 the Company revised its sublease income assumptions used to estimate the fair value of the excess lease facility liability. These assumptions were subsequently revised again in December 2009. These changes in estimate resulted in increases in the fair value of the excess lease liability and $494,000 and $3,457,000 in charges to research and development expense recorded in June 2009 and December 2009, respectively, to reflect these changes in estimate. The estimated fair value of the liability remaining at December 31, 2009 with respect to excess facilities was $4,645,000. In the three months ended March 31, 2010, with respect to excess facilities $337,000 was amortized into income recorded within research and development expense, resulting in a remaining liability of $4,308,000 at March 31, 2010.
Revenue for the first quarter ended March 31, 2010 was $4.7 million, of which $1.9 million consisted of partial recognition of the non-refundable up-front payments received from Teva in December 2009. The remaining $2.8 million of revenue relates to OGX-011 manufacturing costs incurred by OncoGenex in the first quarter of 2010 that are reimbursable from Teva on a cash basis, and is included in amounts receivable at March 31, 2010. At March 31, 2010, $24.6 million of the upfront payment received from Teva was included on the Companys Balance Sheet as Deferred Collaboration Revenue which we are amortizing over a period of approximately three years based on the expected performance period of our deliverables under this agreement. No revenues were recorded in the three months ended March 31, 2009. See note 3 in the Notes to Financial Statements for further details on our collaboration with Teva.
Research and development expenses for the first quarter ended March 31, 2010 were $6.4 million, compared to $1.7 million in the corresponding period of 2009, an increase consistent with the $4.7 million of revenues in the first quarter of 2010. The increased research and development expenses in the first quarter of 2010 were primarily due to manufacturing costs and upfront clinical trial costs associated with the OGX-011 Phase III clinical trials, as well as increased employee expenses. Clinical trial costs for the OGX-011 Phase III clinical trials are applied against the non-refundable up-front payments received from Teva in December 2009, while manufacturing costs are reimbursable from Teva on a cash basis.
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Oncogenex Pharmaceuticals Inc. - Common Shares has a market cap of $121.42 million; its shares were traded at around $19.11 with and P/S ratio of 4.75.
Highlight of Business Operations:
We recorded $4.7 million of collaboration revenue in connection with our OGX-011 Collaboration Agreement with Teva in the three months ended March 31, 2010. At March 31, 2010, $24.6 million of the upfront payment was included in the balance sheet line item Deferred Collaboration Revenue, which we are amortizing over a period over the expected performance period of our deliverables under this agreement. Management currently expects this performance period to end in the fourth quarter of 2012. Further, we are eligible to receive payments of up to $370 million upon the achievement of developmental and commercial milestones. At present, we are unable to predict the timing or likelihood of such milestone payments, although we do not expect to receive any milestone payments from Teva in the year ended December 31, 2010. There were no revenues in the three months ended March 31, 2009. See note 3 in the Notes to Financial Statements for further details on our collaboration with Teva.Under the Collaboration Agreement with Teva, we are required to spend $30 million towards development of OGX-011 which will include personnel costs for certain development activities. Teva is required to fund all other expenses under the Clinical Development Plan. A total of $5.3 million of costs incurred by the Company have been applied against the Companys $30 million funding commitment, resulting in a remaining funding commitment of $24.6 million at March 31, 2010. We expect compensation for our full time equivalent employee costs of between $1.5 and $2.5 million per year from 2010 to 2012, which will be applied against our funding commitment, or reimbursed to us from Teva on a cash basis. We expect to incur the remaining costs associated with the Clinical Development Plan over the next three years.
A majority of the Companys expenditures to date have been related to the development of OGX-011. Until July 2, 2008, OGX-011 was being co-developed with Isis and R&D expenses for OGX-011 were shared on the basis of 65% OncoGenex and 35% Isis. On July 2, 2008, OncoGenex and Isis amended their agreement to provide for unilateral development of OGX-011 by OncoGenex. In connection with the Collaboration Agreement and pursuant to the terms of agreements between the Company and Isis relating to OGX-011, the Company accrued a payment of $10 million to Isis, which was included in R&D expenses in 2009. The Company also accrued a payment of approximately $333,333 to UBC pursuant to the terms of their license agreement relating to OGX-011, which was also included in R&D expenses in December 2009. Amounts owing to Isis and UBC at December 31, 2009 were paid in the first quarter of 2010.
In June 2009 the Company revised its sublease income assumptions used to estimate the fair value of the excess lease facility liability. These assumptions were subsequently revised again in December 2009. These changes in estimate resulted in increases in the fair value of the excess lease liability and $494,000 and $3,457,000 in charges to research and development expense recorded in June 2009 and December 2009, respectively, to reflect these changes in estimate. The estimated fair value of the liability remaining at December 31, 2009 with respect to excess facilities was $4,645,000. In the three months ended March 31, 2010, with respect to excess facilities $337,000 was amortized into income recorded within research and development expense, resulting in a remaining liability of $4,308,000 at March 31, 2010.
Revenue for the first quarter ended March 31, 2010 was $4.7 million, of which $1.9 million consisted of partial recognition of the non-refundable up-front payments received from Teva in December 2009. The remaining $2.8 million of revenue relates to OGX-011 manufacturing costs incurred by OncoGenex in the first quarter of 2010 that are reimbursable from Teva on a cash basis, and is included in amounts receivable at March 31, 2010. At March 31, 2010, $24.6 million of the upfront payment received from Teva was included on the Companys Balance Sheet as Deferred Collaboration Revenue which we are amortizing over a period of approximately three years based on the expected performance period of our deliverables under this agreement. No revenues were recorded in the three months ended March 31, 2009. See note 3 in the Notes to Financial Statements for further details on our collaboration with Teva.
Research and development expenses for the first quarter ended March 31, 2010 were $6.4 million, compared to $1.7 million in the corresponding period of 2009, an increase consistent with the $4.7 million of revenues in the first quarter of 2010. The increased research and development expenses in the first quarter of 2010 were primarily due to manufacturing costs and upfront clinical trial costs associated with the OGX-011 Phase III clinical trials, as well as increased employee expenses. Clinical trial costs for the OGX-011 Phase III clinical trials are applied against the non-refundable up-front payments received from Teva in December 2009, while manufacturing costs are reimbursable from Teva on a cash basis.
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