), which went public in November last year, reported a loss of 68
cents per share in the fourth quarter of 2013, narrower than the
Zacks Consensus Estimate of a loss of 74 cents. Fourth quarter
2013 loss was also narrower than the year-ago loss. The narrower
loss was primarily due to a decline in the fair value of the
convertible preferred stock warrants as a result of the company's
initial public offering.
The biopharmaceutical company did not generate any revenues in
the final quarter of 2013 as was the case a year ago. Research
and development (R&D) costs climbed 28.2% to $10.9 million
mainly due to costs associated with the potential launch of
Relypsa's pipeline candidate patiromer. The candidate is being
developed to treat hyperkalemia, a condition characterized by
high levels of potassium in the blood.
General and administrative expenses at Relypsa climbed 37% to
$3.7 million in the final quarter of 2013. The increase was
primarily due to a rise in personnel expenses and stock-based
compensation expenses in anticipation of patiromer's launch.
During 2013, Relypsa completed evaluating patiromer in phase III
and phase IIb trials for treating patients with hyperkalemia.
Apart from releasing financial results, the company also
provided an outlook for 2014. Relypsa projects operating expenses
in the range of approximately $75 million-$95 million. The
projection is inclusive of stock-based compensation expenses
which are anticipated in the range of $5 million-$10 million.
Costs associated with the potential launch of patiromer and
general and administrative infrastructure related expenses are
the drivers for the 2014 operating expenses projection.
Relypsa carries a Zacks Rank #3 (Hold). Better-ranked stocks
in the biopharma space include
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RELYPSA INC (RLYP): Free Stock Analysis
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