In its recent business update, Immune Pharmaceuticals Inc. (NASDAQ: IMNP) revealed a pending agreement that could see it receive up to $160 million in payments related to worldwide license for AmiKet and AmiKet Nano. The company also reported its 1Q2016 scorecard with the management explaining why they are confident about Immune’s future.
According to Immune Pharmaceuticals Inc. (NASDAQ: IMNP)’s CEO, Daniel Teper, the company has set its focus on long-term pipeline development and operational efficiency. Teper also highlighted clinical program for bertilimumab, talking about increasing patient enrollment for clinical trials.
On the issue of license agreement, Immune said it had executed an option with Novel Pain Therapeutics (NPT) that involves global licenses for AmiKet and AmiKet Nano. According to Immune, if the deal closes, it would be eligible to receive a payment of up to $160 million. On top of that payment, Immune will also be eligible to receive up to 50% of sub-license fees generated by NPT.
Immune says it is on track to achieving its operational and financial targets for 2016.
For 1Q2016, Immune Pharmaceuticals Inc. (NASDAQ: IMNP) logged a massive loss attributable to shareholders of $6 million, translating to EPS loss of $0.17. In the comparable quarter a year ago, Immune posted a loss attributable to shareholders of $3.6 million or $0.15.
What caused the adverse impact?
Higher research and development costs contributed to the increase in Immune’s losses in 1Q2016. The company said it funneled $0.9 million to R&D in the quarter. The increase in R&D spending was caused by an increase in headcount in the R&D department that in turn pushed up salary expenses.
An uptick in rent expenses also pushed Immune’s G&A expenses during 1Q2016, which increased by $0.1 million over the same quarter a year ago.
Operating expenses Immune Pharmaceuticals Inc. (NASDAQ: IMNP)
Immune Pharmaceuticals Inc. (NASDAQ: IMNP) said its operating expenses in 1Q2016 rose to $0.7 million, a steep increase from $0.1 million in the corresponding quarter in 2015. Higher interest expenses and liabilities related to derivative pushed up the operating expenses in the latest quarter.