Rock Creek Pharmaceuticals Inc. (OTCMKTS: RCPI) recently updated on its 1Q2016 and other clinical programs. As it turned out, the company’s belt-tightening measures are delivering favorable results and management remains committed to pipeline development.
For the 1Q2016 ended March 2016, Rock Creek Pharmaceuticals Inc. (OTCMKTS: RCPI) logged a net loss of $2.7 million. Although the bottom-line in the latest quarter seemed to have deteriorated relative to a year ago net loss of $338,000, a deeper look at the 1Q2016 numbers reveal an interesting fact. Rock would have logged a loss of more than $3 million in the year ago quarter had it not been for the one-time gain of $3.5 million that came through security issuance proceeds.
As such, on the bottom-line, Rock’s performance improved compared to a year ago on an adjusted basis and a closer look at certain expenses seems to back the story.
Expenses fall 63% at Rock Creek Pharmaceuticals Inc. (OTCMKTS: RCPI)
In 1Q2016, Rock Creek Pharmaceuticals Inc. (OTCMKTS: RCPI) revealed that expenses related to general and administrative activities was $1.2 million, suggesting a steep decline of 63% from the corresponding quarter a year ago. The decline in general and administrative expenses is a prominent highlight of the success of austerity measures in the company.
R&D spending drops
Rock Creek Pharmaceuticals Inc. (OTCMKTS: RCPI) also reported that its research and development (R&D) budget declined to $133,000 in 1Q2016 compared to $473,000 in the same period last year. As for 1Q2016, management clarified that much of the R&D money went to preparation and pre-clinical testing related to the company’s anatabine citrate candidate.
In the same breath, Rock updated on its product development and particularly highlighted its range of anatabine topical formulation. Additionally, the company stated that preclinical testing of its various anatabine cream and ointment has turned positive results.
Rock Creek Pharmaceuticals Inc. (OTCMKTS: RCPI) has initiated other preclinical studies designed to investigate the efficacy and safety of certain formulations.