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Redpoint Bio Reports Loss for Third Quarter

Posted: November 10, 2010

Redpoint Bio Corporation (Ewing, New Jersey) announced financial and operational results for the three months and nine months ended September 30, 2010. For the three months and nine months ended September 30, 2010, Redpoint recorded no revenue and $0.5 million of revenue, respectively. The revenues for the nine months ended September 30, 2010 were related to an upfront payment in connection with a licensing and commercialization agreement the company entered into with International Flavors & Fragrances Inc. in June 2010. For the three and nine months ended September 30, 2009, Redpoint recorded no revenue and $1.9 million of revenue, respectively. The revenues for the nine months ended September 30, 2009 were primarily from the company's prior collaboration with Givaudan.

Research and development expenses for the third quarter of 2010 were $0.8 million, compared to $1.2 million for the third quarter of 2009. Research and development expenses for the nine months ended September 30, 2010 were $2.5 million, compared to $4.6 million in the same period of 2009. The decrease in expenses was primarily attributable to the reductions in workforce as a result of the corporate restructurings that the company announced in February and May of 2009. General and administrative expenses for the third quarter of 2010 were $0.9 million, compared to $1.2 million for the third quarter of 2009. General and administrative expenses for the nine months ended September 30, 2010 were $2.9 million, compared to $4.2 million in the same period of 2009.

Redpoint reported a net loss for the third quarter of 2010 of $1.8 million, or $0.02 per common share, compared to $2.4 million, or $0.03 per common share, for the third quarter of 2009. The net loss for the nine months ended September 30, 2010 was $4.9 million, or $0.06 per common share, compared to $7.0 million, or $0.09 per common share, for the nine months ended September 30, 2009.

Redpoint had approximately $1.6 million in cash and cash equivalents at September 30, 2010. In addition, in October 2010, RP44, the company's all-natural sweetness enhancer, was determined to be Generally Recognized As Safe (GRAS), triggering a $0.5 million milestone payment, which is due to the company in connection with its June 2010 license agreement with IFF. Additionally, Redpoint is in the process of selling a portion of its New Jersey State net operating loss carryforwards and in November, the company received notification that its diabetes program had been approved for a grant in the amount of approximately $0.25 million in connection with the Qualifying Therapeutic Discovery Project Program under section 48D of the Internal Revenue Code. The company believes its current capital resources, and the amounts expected to be received from the aforementioned milestone payment and government programs, are sufficient to meet its operating and capital requirements through April 2011.

More information about Redpoint’s third quarter and nine month financials is available here.