Cardium Therapeutics, Inc. (CXM) Reports Latest Developments and Financial Results of Q2 2012
Today before the opening bell, Cardium Therapeutics issued a press release detailing its financial results for the second quarter ended June 30, 2012, as well as reported on other recent developments including: (1) agreement with Advanced Biosciences Research, an affiliate of bioRASI, for the planned commercialization of Excellagen® physician-use wound care product in the Russian Federation and the CIS; (2) agreement with Angel Biomedical for the manufacture of Excellagen and to assist Cardium in filing for a CE Mark for the potential marketing and sale of Excellagen in the European Union; (3) selection of Excellagen as one of the top ten podiatry innovations in 2012 by Podiatry Today publication; (4) publication of important research findings that have been incorporated into the treatment protocols of the Company’s Generx® ASPIRE Phase 3 / registration study for patients with advanced coronary disease; and (5) introduction of the Neo-Chill Nutra-App® to the Company’s MedPodium® healthy lifestyle product platform.
Cardium’s R&D costs for the quarter ended June 30, 2012, totaled $425,000 and selling, general, and administrative expenses were reported at $1.5 million, compared to $804,000 and $1.2 million, respectively, for the same period a year earlier. For the six months ended June 30, 2012, research and development costs were $1.6 million and selling, general, and administrative expenses were $3.0 million, compared to $1.3 million and $2.5 million, respectively, for the six months ended June 30, 2011. According to the press release, the increase in research and development for the six months ended June 30, 2012, was primarily due to development expenses related to the company’s Excellagen product, which is now commercially available, as well as increased costs related to the Generx ASPIRE study. The increase in selling, general, and administrative expenses for the six-month period was mainly attributed to increases in expenses related to the marketing efforts for Excellagen and the MedPodium Nutra-Apps® product line. Cardium’s revenue for the three-month period ended June 30, 2012, totaled $13,000. For the six months ended June 30, 2012, the company’s revenue totaled $34,000. Revenues during this period were predominantly generated from the introduction of the MedPodium Nutra-Apps product line and initial introduction of the company’s Excellagen wound care product. During Q2 2012, Cardium’s initial market introduction of Excellagen was primarily focused on physician product sampling to “seed” the market and support physician-based post-marketing case studies.
For the three months ended June 30, 2012, the company reported a net loss of $1.9 million, or $(0.02) per share, compared to a net loss of $1.8 million, or $(0.02) per share for the three months ended June 30, 2011. For the six months ended June 30, 2012, the company reported a net loss of $4.5 million, or $(0.04) per share, compared to a net loss for the six months ended June 30, 2011 of $3.5 million, or $(0.04) per share. The increase in the net loss was due primarily to testing, validation, and marketing costs for the company’s Excellagen wound care product. As of June 30, 2012, the company had a total of $6.3 million in cash compared to $4.7 million in cash at the end of December 31, 2011.
During the most recently ended quarter, Cardium announced an agreement with Advanced Biosciences Research, an affiliate of bioRASI, for the planned commercialization of Cardium’s professional-use Excellagen® topical wound care management product in Russia and the nine additional member countries comprising the Commonwealth of Independent States (CIS). Under this agreement, bioRASI will be responsible for the registration and approval for potential marketing and sales of Excellagen in the Russian Federation, and will assist Cardium to develop an infrastructure plan for the marketing, sales, and distribution of Excellagen in Russia and the CIS following final market approval. bioRASI is the sponsor and development partner responsible for the management and regulatory compliance of the company’s Generx DNA-based cardiovascular angiogenic biologic Phase 3 / registration study for the treatment of patients with myocardial ischemia due to coronary disease which is currently underway in Russia.
The company also announced an agreement with UK-based Angel Biomedical Limited, a subsidiary of Angel Biotechnology Holdings plc (ABH.L), a global biopharmaceutical contract manufacturer, covering the manufacturing of Excellagen and to assist Cardium to facilitate filing for a CE Mark of Excellagen for potential marketing and sale in the European Union, which consists of 27 member countries. Earlier in the year, Cardium announced a marketing and distribution agreement with BL&H Co. for South Korea.
In addition, Cardium recently announced that Excellagen was selected as one of the top ten podiatry innovations in 2012 by Podiatry Today publication and that it will be exhibiting Excellagen at the American Podiatric Medical Association (APMA) National Meeting (Booth 1910) being held August 16 – 19, 2012 in Washington, DC.
Cardium further announced the market introduction of Excellagen in March 2012 with Smith Medical Partners, a subsidiary of H.D. Smith, providing logistics and cold chain services. Initially, the company’s market introduction efforts have been centered on internet, digital, and print marketing to physicians and patients, and exhibiting Excellagen at medical trade shows. Cardium’s market introduction strategy is centered on relationship building with key opinion leaders and wound care specialists through product sampling, support of physician-based case studies, and practice integration. To view an Excellagen foot ulcer case study by Dr. Curtis Long, please visit http://www.excellagen.com/diabetic-foot-ulcers.html and to view an Excellagen Mohs surgery case study by Dr. Steven Smith, please visit http://www.excellagen.com/surgical-wounds.html. Cardium aims to identify strategic commercialization partners with existing sales and marketing forces in the U.S., as well as internationally, rather than establishing an internal sales force.
For more information on Cardium Therapeutics and its products, visit www.CardiumTHX.com
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