Avalon (AVRX) 1/3:
>>Aug 13 (Reuters) - Avalon Pharmaceuticals Inc (AVRX.O: Quote, Profile, Research, Stock Buzz) said it does not have enough capital resources to fund its operations beyond this year, sending its shares down more than 13 percent to a life-time low.
The biopharmaceutical company said it was pursuing additional funding and may not be able to continue as a "going concern" if it fails to raise additional funds.
Avalon is reducing its cash burn rate by restructuring, and plans to cut a third of its jobs to about 35 to focus on existing collaborations, and on the pre-clinical and the development of its Beta-catenin inhibitor program.
It expects restructuring charges of $900,000 to $1.1 million.
As of June 30, Avalon said it had cash , cash equivalents and marketable securities of $16.7 million.
The company posted a narrower-than-expected second-quarter net loss of $5.6 million, or 33 cents a share, compared with a loss of $5.8 million, or 40 cents a share, a year earlier.
Revenue rose 76 percent to $137,000.
Analysts on average expected a loss of 35 cents a share, before special items, on revenue of $280,000, according to Reuters Estimates.<<
Cheers, Tuck |
