Repros Therapeutics Inc.
) share price has been on a declining trend ever since the
company received guidance from the U.S. Food and Drug
Administration (FDA) related to the Androxal development program
on Oct 22, 2013. In view of the guidance, Repros now expects to
submit the new drug application (NDA) to the FDA in the fourth
quarter of 2014. Earlier, the company had planned on submitting
the NDA in mid-2014 with potential launch in 2015.
Investors reacted negatively to the delay in the potential
approval of Repros. The stock price of Repros fell significantly
since then. Overall, the stock lost 35.5% since the announcement.
The release of the third quarter 2013 results did not revive
investor confidence in the stock with barely any reversal in
Repros reported third quarter 2013 loss of 26 cents per share,
narrower than the year-ago loss of 30 cents per share and the
Zacks Consensus Estimate of loss of 33 cents. The narrower loss
was due to an increase in the number of shares.
The company's revenue for the third quarter of 2013 was $0.3
million as compared to $0.1 million in the year-ago period. The
entire revenues came from interest income.
In the third quarter of 2013, general and administrative expenses
decreased 16% to $1.2 million due to lower stock based
compensation. Research and development expenses shot up 53% year
over year to $4.8 million, reflecting higher pipeline investment.
Androxal, the advanced pipeline candidate at Repros, is being
evaluated for the treatment of secondary hypogonadism. Currently
prescribed therapies for secondary hypogonadism include
On Jun 25, 2013, the company completed a public offering of
4,312,500 shares at a price of $19.00 per share. Net proceeds
from the transaction, approximately $76.8 million, boosted
Repros' cash balance which jumped to $81.8 million in Sep 30,
2013 from $24.2 in Dec 31, 2012.
Repros currently carries a Zacks Rank #3 (Hold). We expect
investor focus to remain on Androxal updates.
However, companies like
AMAG Pharmaceuticals Inc.
) look more attractive with a Zacks Rank #1 (Strong Buy).
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