In the last trading session, the stock price of Neothetics Inc (NASDAQ:NEOT) declined more than 22% to close the day at $1.33. There is no known reason seen behind this sharp decline on Wednesday. In the month of August, the company has released financial report for the second quarter 2017, wherein it stated that net loss was $2.8 million for the reported quarter versus net loss of $2.7 million, for the same quarter in 2016. For the semester closed June 30, 2017, net loss came at $5.8 million as against the net loss of $8.7 million, for the same period, a year earlier.
The details
In July 2017, Neothetics reported that its Board of Directors unanimously permitted plans to commence a process to review and explore a range of strategic options focusing on seeking an acquisition, partnership or business combination that will permit for it to enhance shareholder value from its cash resources and remaining assets.
The company has engaged Oppenheimer and Co., Inc. to work as its financial advisor for this procedure. It also plans to streamline its businesses in order to preserve its cash resources and capital, including implementing a decline in the firm’s workforce to two employees from six employees.
For the Q2 2017, research and development expenses came at around $1.6 million, as against $1.4 million for the comparable quarter in 2016. R&D expenses for the semester closed June 30, 2017 came at $3.1 million, as against $4.7 million for the comparable period in 2016.
The drop in R&D expenses year over year was mainly due to completion of the big chunk of the close-out activities for company’s AbCONTOUR2 and AbCONTOUR1 U.S. Phase III clinical studies and supplemental clinical studies and the decline of personnel and other R&D activities in 2016. The drop was offset by the expenses noted in 2017 for the Phase II proof-of concept clinical study for the decline of localized fat deposits under the chin.
