|Healthcare Review: Amarin, Zalicus, Rexahn Pharmaceuticals, Synthetic Biologics, Fonar Corp.|
|By Staff and Wire Reports|
|Thursday, 15 May 2014 12:51|
U.S. stocks dropped more than 1 percent on Thursday, fueled by a selloff in small-cap stocks and disappointing results from Wal-Mart. The Russell 2000 index of small cap stocks tumbled 1.7 percent, putting the index into correction territory. It is down more than 10 percent from its record close of 1,208.65 in early March.
Through its wholly-owned subsidiary Corsicanto Limited, certain holders of Amarin's ($AMRN) outstanding 3.50% Exchangeable Senior Notes issued on January 9, 2012 valued at $118.7M exchange their holdings for new Exchangeable Senior Notes with a lower conversion price. The original notes' conversions were 113.4752 ADSs/$1000 in principal amount. Amarin's price/ADS was, of course, much higher at the time. The new debt will have a conversion option of 384.6154 ADSs/$1000 in principal amount. The conversion rates in the old and new notes are based on ADS prices of $8.81 and $2.60, respectively.
In an effort to maximize its ownership stake in its merger with Epirus Biopharmaceuticals, Zalicus ($ZLCS) sells its combination High Throughput Screening (cHTS) platform and related assets to Horizon Discovery Group for $8M. Based on the successful closing of the transaction, Zalicus shareholders will own 17% of the merged organization. Zalicus' ownership stake will be determined by its cash position at a certain date prior to the closing of the merger and could range as high as 19% or as low as 14%. The company continues to look at additional asset monetization opportunities that will maximize its stake in the combined firm.
Shares of nano cap Rexahn Pharmaceuticals ($RNN) spike on average volume in response to its financial report this morning. Cash position: $40.3M; cash burn: ($2.6M). Management believes its current cash position will be sufficient to fund operations into 1H 2016.Initial results from Phase 1 clinical trial of Supinoxin. No maximum tolerated dose identified in the three dosing cycles (25, 50, 100 mg). A fourth dosing cycle (150 mg) is ongoing. The drug displays dose-proportional exposure and an estimated oral bioavailability of 51%.
Shares of nano cap Synthetic Biologics ($SYN) jump on a 40% increase in volume in response to its Q1 financial report and business update. Operating loss: ($3.8M) (-72.7%); cash & equiv: $11.2M (-23.2%).The company will conduct a 28-day bridging toxicology study on its lead anti-infective product candidate, SYN-004 next month followed by an IND application. A Phase 1a/1b trial should begin in 2H 2014 with preliminary top-line results by year end. A Phase 2 trial will follow in 1H 2015.
Shares of thinly-traded Fonar Corp ($FONR) are down on turnover of 103K in early trading after the company reported fiscal Q3 earnings this morning before the open. Total revenues: $17M (+46.6%); operating income: $2.3M (+43.8%); net income: $2.1M (+31.3%); non-GAAP EPS: $0.27 (+58.8%); quick assets (ex-A/R): $9.6M (+21.5%).