Synta Pharmaceuticals Corp. (NASDAQ: SNTA), a biopharmaceutical company focused on discovering, developing, and commercializing small molecule drugs to treat severe medical conditions, today reported financial results for the quarter ended March 31, 2010.
“Synta has made significant progress this year in advancing our lead oncology programs, as well as strengthening our financial position”
“Synta has made significant progress this year in advancing our lead oncology programs, as well as strengthening our financial position,” said Safi R. Bahcall, Ph.D., President and Chief Executive Officer of Synta. “Two investigator-sponsored trials of STA-9090, one in colon cancer and one in gastric cancer, have been recently initiated at leading cancer centers. Results from our two Phase 1 solid tumor studies of STA-9090 were accepted for presentation at the annual meeting of the American Society for Clinical Oncology in June. Our Phase 2 trials in AML, NSCLC, and GIST have been enrolling well. And the public offering of common stock we completed in January has provided us with a cash runway into 2012. Going forward, we remain on track to receive preliminary results from the ongoing Phase 2 trials in the second half of the year, as well as meet our goal of six to ten new trials for STA-9090 initiated in 2010.”
“We are encouraged by the high level of interest in STA-9090 among investigators,” said Vojo Vukovic, M.D., Ph.D., Senior Vice President and Chief Medical Officer of Synta. “We believe this reflects the strong preclinical and encouraging early clinical results with STA-9090, as well as the broad therapeutic potential for a potent Hsp90 inhibitor with a favorable safety profile.”
The Phase 2 colon cancer trial will be conducted at Memorial Sloan-Kettering Cancer Center in New York and will enroll up to 33 patients with metastatic colon cancer or rectal cancer. The Phase 2 gastric cancer trial will be conducted at Massachusetts General Hospital in Boston, MA, and will enroll up to 41 patients with gastric, esophageal, or gastroesophageal cancers. In both trials, patients will be administered STA-9090 on a once-weekly schedule.
In the first quarter, Synta also announced that clinical development of elesclomol is expected to resume in the second half of 2010. Twelve month overall survival (OS) results from the Phase 3 SYMMETRY trial for elesclomol in metastatic melanoma will be presented in a poster at the ASCO meeting. The Company expects to initiate a clinical trial of elesclomol in acute myeloid leukemia later in the year.
Total collaboration revenue was $4.0 million for the first quarter in 2010 compared to net collaboration revenue of $4.5 million for the same period in 2009. The Company reported a net loss of $9.3 million or $0.24 per basic and diluted share for the first quarter in 2010, compared to a net loss of $23.5 million, or $0.69 per basic and diluted share for the same period in 2009.
Research and development expenses were $10.2 million for the first quarter in 2010 compared to $22.6 million for the same period in 2009. General and administrative expenses were $3.1 million for the first quarter in 2010 compared to $4.1 million for the same period in 2009.
In January 2010, the Company raised $26.7 million of net proceeds from the sale of its common stock in an underwritten public offering. As of March 31, 2010, the Company had $57.9 million in cash and cash equivalents compared to $44.2 million in cash and cash equivalents as of December 31, 2009.
More detailed financial information and analysis may be found in the Company’s Quarterly Report on Form 10-Q, which was filed with the Securities and Exchange Commission on May 4, 2010.
Based on our current operating levels, we estimate our cash resources inclusive of proceeds from our January 2010 public offering, together with expected research and development reimbursements and milestone payments in connection with certain preclinical and clinical achievements under our collaborative license agreement with Roche, will be sufficient to fund the Company’s operations into 2012.
Synta continues to target at least one partnership for one or more of its unpartnered assets in 2010.
Synta Pharmaceuticals Corp.