Sunesis Pharmaceuticals, Inc. (NASDAQ: SNSS) continues to lose money as its latest financial results for 2Q2016 and 1H2016 show. But the management is not feeling worried nor do they want shareholders to panic.
At the release of the 2Q2016 and 1H2016 results, Sunesis Pharmaceuticals, Inc. (NASDAQ:SNSS) detailed the efforts it was making to bring its drug candidate called vosaroxin to market. The drug is being developed as a treatment for relapsed/refractory AML.
Sunesis has another pipeline candidate called SNS-062. According to CEO Daniel Swisher, they were able to advance the development of vosaroxin and SNS-062 during 2Q2016. The advancements have brought Sunesis closer to netting certain milestone payments attached to the two programs. The achievement of the milestones should unlock significant value for Sunesis, CEO Swisher said in a statement.
Sunesis Pharmaceuticals, Inc. (NASDAQ: SNSS) is in the process of seeking regulatory approval to launch vosaroxin in the European market as a therapy for relapsed/refractory AML. If everything goes according to plan, European launch of the drug should come in 2017.
What transpired in 2Q and 1H for Sunesis Pharmaceuticals, Inc. (NASDAQ: SNSS)?
Sunesis generated revenue of $0.6 million in 2Q2016. That compared with revenue of $0.9 million in 2Q2015. As for the 1H2016, revenue was $1.2 million, down from $1.7 million in the same period last year. The management explained that the revenue decline was caused by some estimates affecting deferred revenue.
The decline in revenue for the periods saw Sunesis reported a wider net loss. The company said that net loss for 2Q2016 rose to $10.4 million compared to $8.9 million in the year-ago period. As for 1H2016, net loss increased to $20.5 million compared to $18 million in the same period last year.
Is there cause for alarm?
Despite the shrinking of sales in 2Q and 1H period and the widening of losses in both periods, the management of Sunesis Pharmaceuticals, Inc. (NASDAQ: SNSS) remains upbeat about the future. For instance, the management said that the $33.1 million available in cash and equivalents is adequate to fund operations through the middle of the next year. That should remove investor concern about whether Sunesis can stay afloat amid the losses.