This is a two-month old news:
Friday February 14 7:30 AM EDT
Procept announces 1996 financial results
CAMBRIDGE, Mass.--(BW HealthWire)--Feb. 14, 1997-- Procept Inc today announced its results for the year ended Dec. 31, 1996. The
company reported that revenues decreased to $2,278,000 in 1996 from $4,647,000 in 1995. The net loss decreased to $11,236,000 or $0.97
per share in 1996 from $11,712,000 or $1.82 per share for the comparable period last year.
As of Dec. 31, 1996, the company had cash, cash equivalents and marketable securities of $6.0 million. There were approximately 13.7
million shares of common stock outstanding".
If you look at PRCT's financial results and compare the date of their release with their stock chart, you notice that the stock drop started around the time of the earnings release. According to the numbers, PRCT has only enough cash for less than 4 months. What makes the situation even worse is that the market for biotechs is atrociuos and a secondary offering is out of the question at this time.
PRO-2000 does look like a potentially good product but this cash crunch may be the major reason of the stock troubles. It could also be the reason they did not do expensive preclinical in vivo efficacy studies (e.g., SIV in monkeys) but went directly to human trials outside of the US.
I don't believe that the grants will solve the financial problems for PRCT. They are relatively small and will not cover the cost Phase II/III studies. The company needs to raise over $10-20mln to stay in business!
T.
P.S. Sorry for being so negative, but I had some very negative experience with two small biotechs in Mass going out of business and taking my stocks down with them.
|
