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Alexza Pharmaceuticals first-quarter net loss increases to $13.4 million

June 12, 2019

GAAP operating expenses were $12.6 million and $16.4 million in the quarters ended March 31, 2010 and 2009, respectively.  Research and development expenses in the first quarter of 2010 were $7.6 million, compared to $11.0 million for the same period in 2009.  The decrease in expenses for the quarter was primarily due to decreased development expenses for AZ-004.  General and administrative expenses for the first quarter of 2010 were $5.1 million, compared to $3.9 million for the same period in 2009.  The increase in expenses is primarily related to a one-time, non-cash charge of $1.1 million related to Alexza entering into a sublease agreement for a portion of one of its Mountain View facilities.

During the first quarter of 2010, Alexza received an upfront payment of $40 million from Biovail.  In connection with the acquisition of Symphony Allegro, Inc. in August 2009, Alexza is obligated to pay the former Symphony Allegro shareholders certain percentages of cash payments that may be generated from collaboration transactions for AZ-002, AZ-004 or AZ-104.  Under these terms, Alexza paid $7.5 million of the $40 million upfront payment from Biovail to the former Symphony Allegro shareholders.  In addition to the payment to the Symphony Allegro shareholders, Alexza recorded a non-cash charge of $722,000 in the first quarter of 2010, as a result of an increase in the present value of the estimated possible future payments under this transaction.  Changes in the calculated fair value of this contingent liability are recognized in earnings in the period of the change.

Alexza anticipates that with current cash, cash equivalents and marketable securities along with interest earned thereon, borrowings under the Hercules loan agreement, the proceeds from option exercises and purchases of common stock pursuant to its Employee Stock Purchase Plan, it will be able to maintain its currently planned operations through the second quarter of 2011, which time period will extend into 2012 if Alexza achieves the eligible milestones under the Biovail collaboration during the next 12 months.  Changing circumstances may cause Alexza to consume capital significantly faster or slower than currently anticipated.

SOURCE Alexza Pharmaceuticals, Inc.