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Receptos, Inc. (RCPT)

Q2 2013 Earnings Conference Call

August 7, 2013 17:00 ET


Faheem Hasnain - Chief Executive Officer

Graham Cooper - Chief Financial Officer

Sheila Gujrathi - Chief Medical Officer


Ravi Mehrotra - Credit Suisse

Marko Kozul - Leerink Swann

Liana Moussatos - Wedbush Securities



Good day ladies and gentlemen. And thank you for standing by and welcome to the Receptos Second Quarter 2013 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we’ll conduct a question-and-answer session and instructions will follow at that time (Operator Instructions) As a reminder, today’s conference may be recorded.

It’s now my pleasure to turn the floor over to Chief Executive Officer, Faheem Hasnain. Please go ahead, sir.

Faheem Hasnain - Chief Executive Officer

Good morning and thank you for joining us for Receptos second quarter 2013 earnings call. With me today are Graham Cooper, our Chief Financial Officer and Sheila Gujrathi, our Chief Medical Officer. Today’s call is also being webcast live on our website and it will be available for replay until August 21.

Before we begin I'm going to ask Graham to handle the forward-looking statement disclaimer and Graham will walk you through our financial results followed by an update on our clinical development program that Sheila and I will cover and after that we’ll of course be happy to take any questions you may have. Graham?

Graham Cooper - Chief Financial Officer

Thanks Faheem. Please note that Receptos statements of historical facts, the statements in this conference call are forward-looking statements under the Safe Harbor provisions of Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements. Please see the forward-looking statement disclaimer and the company’s earnings press release issued after the dated the close of market today, as well as the risk factors in the SEC filings including our IPO perspective stated May 8, and our Form 10-Q for the second quarter that will be filed shortly. Undue reliance should not be placed on forward-looking statements which speak only as of the date they are made and the facts and assumptions underlying these forward-looking statements may change. Except as required by a law Receptos disclaims any obligation to update these forward-looking statements to reflect future information, events or circumstances.

Let me turn now to the financial results for the second quarter. For the three months ended June 30, 2013, Receptos reported a net loss of $9.9 million or $0.98 per share as compared to a net loss of $3.3 million or $2.67 per share for the second quarter of 2012. total revenues for the second quarter of 2013 were $1.2 million, compared to $1.7 million for the second quarter of 2012. Total operating expenses for the second quarter of 2013 were $11 million compared to $5 million for the second quarter of 2012.

R&D expenses were $9.4 million for the second quarter compared to $4.3 million for the second quarter of 2012. The increase in R&D expenses primarily related to commencement of the Phase 2 portion of our Phase 2/3 trial of RPC1063 in Relapsing MS, commencement of the Phase 2 trial of RPC1063 in ulcerative colitis and preparation for the Phase 3 portion of our Phase 2/3 trial of RPC1063 in Relapsing MS.

G&A expenses were $1.6 million for the second quarter of 2013, compared to $0.8 million for the second quarter of 2012. This increase in G&A primarily relates to an increase in personnel costs, additional stock comp expenses and additional expenditures on outside services. As of June 30, 2013, Receptos had $91.1 million in cash and equivalents, debt with a principal balance of $5 million and approximately $18.3 million shares of common stock outstanding, we also have $25 million inventory debt that remains available to us into our credit arrangement with MidCap financial. We believe that between the cash and the balance sheet and the availability of venture debt we have sufficient resources to provide cash runway until the second quarter of 2015.

I will now hand the call back over to Faheem.

Faheem Hasnain - Chief Executive Officer

Thanks Graham. There are three primary things that I want to convey on this call. First, we’re on track with our Phase 2 trials of our S1P1 receptor modulator called RPC1063, with data expected in both Relapsing MS and Ulcerative Colitis next year. Second, having completed our IPO in the second quarter, we’re now well capitalized to execute through these data points. And finally, the recent launch of Tecfidera and the performance of GILENYA and the context of that Tecfidera launch support our view of the strong trend towards oral therapy and the treatment of MS and the great opportunity for an oral therapy that’s meaningfully differentiated from the other products on the market or and development.

Now as you know, this is our first earnings call as a public company, and as such I wanted to just take a moment to orient to you with regard to our development programs. As you’re aware, Receptos was founded on three elements of technology, a structural biology platform focused on G Protein-Coupled Receptors and Oral GLP-1 Receptor Allosteric Modulator Program which was developed from that platform and an Oral S1P1 Receptor Modulator Program which we are directing to autoimmune indications.

The structural biology platform has been useful to us because through collaborations with Lilly, J&J and Ono we’ve been able to upwards of $20 million on the lit of capital to fund our therapeutics development effort. And additionally, we have been successful in bringing in an asset from the outside and anti-IL-13 antibody from an orphan indication called eosinophilic esophagitis that we in-licensed from AbbVie several months ago.

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