NEW YORK, Aug. 8 Keryx Biopharmaceuticals, Inc.(Nasdaq: KERX), a biopharmaceutical company focused on the acquisition,development and commercialization of medically important, novel pharmaceuticalproducts for the treatment of life-threatening diseases, including renaldisease and cancer, today announced its results for the second quarter endedJune 30, 2008.
At June 30, 2008, the Company had cash, cash equivalents, investmentsecurities and interest receivable of $34.6 million, as compared to $64.7million at December 31, 2007. Approximately $10.1 million of the Company'sinvestments, at June 30, 2008, represent auction rate securities which areclassified as long-term investments.
The net loss for the second quarter ended June 30, 2008 was $7,697,000, or$0.17 per share, compared to a net loss of $19,460,000, or $0.45 per share,for the comparable quarter in 2007, representing a decrease in net loss of$11,763,000. The decrease in net loss was primarily attributable to a$10,390,000 decrease in research and development expenses related to thecessation of the development of Sulonex in March 2008, an $852,000 decrease inexpenses related to our other clinical compounds, a $567,000 decrease innon-cash compensation expense related to equity incentive grants, and a$309,000 decrease in other selling, general and administrative expenses,partially offset by a $926,000 decrease in interest and other income.
Commenting on the quarter, Michael S. Weiss, Keryx's Chairman and ChiefExecutive Officer, said, "During the second quarter, the Company efficientlycompleted the restructuring which was implemented at the end of the firstquarter. We believe that the resulting organization, while lean, possessesthe requisite strengths and capabilities necessary to expeditiously moveZerenex and Perifosine forward, as well as to assess additional opportunitieswhich may enhance our product pipeline." Weiss continued, "With respect toour financial health, we expect our cash burn to be approximately $6 millionto $8 million for the remaining six months of 2008, and intend to continue tofocus our resources on creating value in our product portfolio."
On Monday, August 11, 2008, at 8:30am EDT, the Company will host aninvestor conference call during which they will provide a brief financialoverview of the Company's second quarter financial results.
In order to participate in the conference call, please call 1-877-719-9788(U.S.), 1-719-325-4769 (outside the U.S.), call-in ID: KERYX. The audiorecording of the conference call will be available for replay athttp://www.keryx.com, for a period of 15 days after the call.
ABOUT KERYX BIOPHARMACEUTICALS, INC.
Keryx Biopharmaceuticals is focused on the acquisition, development andcommercialization of medically important, novel pharmaceutical products forthe treatment of life-threatening diseases, including renal disease and cancer.Keryx is developing Zerenex(TM) (ferric citrate), an oral, iron-based compoundthat has the capacity to bind to phosphate and form non-absorbable complexes.Zerenex is currently in Phase 2 clinical development for the treatment ofhyperphosphatemia (elevated phosphate levels) in patients with end-stage renaldisease. The Company is also developing KRX-0401 (perifosine), a novel,potentially first-in-class, oral anti-cancer agent that modulates Akt, aprotein in the body associated with tumor survival and growth. KRX-0401 alsomodulates a number of other key signal transduction pathways, including theJNK and MAPK pathways, which are pathways associated with programmed celldeath, cell growth, cell differentiation and cell survival. KRX-0401 iscurrently in Phase 2 clinical development for multiple tumor types. TheCompany also has an in-licensing and acquisition program designed to identifyand acquire additional drug candidates. Keryx is headquartered in New YorkCity.