Trading the Biotech News: Mast Therapeutics, Inc. (NYSEMKT:MSTX), PDL BioPharma, Inc. (NASDAQ:PDLI)

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Mast Therapeutics, Inc. (NYSEMKT:MSTX) lost -0.63% by the end of recent close at $0.31. For the ongoing quarter, the 5 Wall Street analysts providing adjusted earnings per share outlook have a consensus estimate of $-$0.06/share, which would compare with $-$0.06 in the year-ago quarter. The percentage change in the price over the last fifty two weeks remained -41.67%. The price range in those 52 weeks had a highest hit of $0.6 while lowest level in that period was $0.21. Latest closing price was 8.79% above its 50-day moving average and -20.03% below its 200-day moving average.

Mast Therapeutics Inc (NYSEMKT:MSTX) on May 6, 2016 reported financial results for the first quarter ended March 31, 2016.

“The first quarter of 2016 was a productive one for Mast.  Not only did we complete enrollment in our Phase 3 EPIC study of vepoloxamer in sickle cell disease, but also we announced positive data from a Phase 2a study of AIR001 in patients with heart failure with preserved ejection fraction conducted at Mayo Clinic, and the selection of AIR001 for a double-blind, placebo-controlled Phase 2 study in approximately 100 patients with HFpEF to be conducted at premier U.S. clinical centers that make up the HFN,” stated Brian M. Culley, Chief Executive Officer.

First Quarter 2016 Operating Results
The Company’s net loss for the first quarter of 2016 was $11.2 million, or $0.06 per share (basic and diluted), compared to a net loss of $9.6 million, or $0.06 per share (basic and diluted), for the same period in 2015.

Research and development expenses for the first quarter of 2016 were $7.9 million, an increase of $1.9 million, or 30%, compared to $6.0 million for the same period in 2015.  The increase was due mainly to increases of $0.9 million in external nonclinical study fees and expenses, $0.5 million in external clinical study fees and expenses, and $0.3 million in personnel expenses.

The increase in external nonclinical study fees and expenses was due primarily to increased costs related to preparation for a new drug application for vepoloxamer ($0.5 million) and research-related manufacturing for vepoloxamer ($0.5 million), offset by a decrease in research-related manufacturing for AIR001 ($0.1 million).  The increase in external clinical study fees and expenses was due primarily to increased costs related to the Phase 2 study of vepoloxamer in heart failure ($0.5 million) and the EPIC study ($0.3 million), offset by a decrease related to discontinuation of a Phase 2 study of vepoloxamer in acute limb ischemia, which the Company began to wind-down in the third quarter of 2015 ($0.3 million).

Selling, general and administrative (SG&A) expenses for the first quarter of 2016 were $2.8 million, a decrease of $0.8 million, or 21%, compared to $3.6 million for the same period in 2015. SG&A expenses for the first quarter of 2015 included $0.4 million of severance expenses and $0.3 million of share-based compensation resulting from the termination of employment of the Company’s former president and chief operating officer in February 2015 and the acceleration of stock option vesting pursuant to the terms of his option agreements.

Interest expense for the first quarter of 2016 was $0.5 million, which was related to the Company’s debt facility.  There was no interest expense for the first quarter of 2015.

Shares of PDL BioPharma, Inc. (NASDAQ:PDLI) traded up 2.21% in last trading session to close the session at a price $3.24/share. Among 2 brokerage firms tracked by Thomson/First Call, the average PT for PDLI is $3.75 but some of them are forecasting the price to move at the $4 level. If the most bullish analysts are correct in their analysis that represents 23.46 percent growth momentum from the current levels. With an average trading capacity of 2,272,970 shares, the number of shares traded in most recent session was 1,350,105 shares. Its previous 52-week high was $6.83 and moved down -45.92% over the same period, currently having a market cap around $532.29M. Shares have added 11.23% over the trailing 6 months. The stock presently trades -3.62% below its SMA 50 and -17.87% below its SMA 200.

PDL BioPharma Inc (NASDAQ:PDLI) on May 4, 2016 reported financial results for the first quarter ended March 31, 2016 including:

  • Total revenues of $103.1 million for the first quarter of 2016.
  • Non-GAAP diluted earnings per share (EPS) of $0.52 increased approximately 11 percent versus the same period in 2015.
  • Non-GAAP net income increased 7 percent to $84.8 million.
  • GAAP diluted EPS of $0.34 decreased by 32 percent compared to the same period of 2015.
  • GAAP net income decreased by 34 percent to $55.9 million.

The largest component of the difference in non-GAAP measure compared to GAAP is the exclusion of mark-to-market adjustments related to the fair value election of our investments in royalty rights. A full reconciliation of all components of the GAAP to Non-GAAP quarterly financial results can be found in Table 4 at the end of this release.

Revenue Highlights

  • Total revenues of $103.1 million for the quarter ended March 31, 2016 included:
  • Royalties from PDL’s licensees to the Queen et al. patents of $121.5 million, which consisted of royalties earned on sales of products under license agreements associated with the Queen et al. patents;
  • Net royalty payments from acquired royalty rights and a change in fair value of the royalty rights assets of negative $27.1 million, which consisted of revenues associated with the change in estimated fair value of our royalty right assets and primarily related to the Depomed, Inc. royalty rights acquisition;
  • Interest revenue from notes receivable debt financings to late-stage healthcare companies of $9.0 million; and
  • License and other revenues of negative $0.2 million, which consisted of a negative $0.3 million mark-to-market adjustments on warrants held and, a realized gain of $0.1 million from the sale of PDL’s investment in AxoGen Inc. common stock.
  • Total revenues decreased by 31 percent for the first quarter ended March 31, 2016, when compared to the same period in 2015.
    • The decrease in royalties from PDL’s licensees to the Queen et al. patents is due to decreased Lucentis®and Actemra® royalties as a result of the conclusion of their license agreements, partially offset by increased royalties from other Queen et al. royalty revenues.
    • PDL expects its revenue from the Queen et al. patents to materially decrease beyond this first quarter of 2016.
    • The decrease in royalty rights – change in fair value was driven by the $47.9 million decrease in the fair value of the Depomed royalty rights assets and is primarily a result of lower than expected cash royalties in the first quarter and an adjustment reducing future cash flows due to lower projected demand data, greater erosion of market share due to the launch of a generic, and higher gross-to-net adjustments for Glumetza.
    • PDL received $17.2 million in net cash royalty payments from its acquired royalty rights in the first quarter of 2016, compared to $0.9 million for the same period of 2015.
    • The decrease in interest revenues was due to reduced interest from Direct Flow Medical, Inc. as a result of ceasing to accrue interest due to the loan being impaired

 

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