RXi Pharmaceuticals this week released its second-quarter financial results, posting a surge in losses tied to its spinout from former parent firm Galena Biopharma (GSN 5/10/2012).
For the three-month period ended June 30, RXi's net loss jumped to $17.2 million, or $0.13 a share, from a year-ago loss of $1.9 million, or $0.05 a share. According to the company, the increase was largely the result of a $9.6 million non-cash dividend “relating to the beneficial conversion feature as a result of the issuance of convertible preferred stock” in late April when Galena sold 83 percent of RXi to institutional shareholders.
RXi's research and development spending soared to $6.9 million from $1.8 million during the same period last year, a rise in part related to costs associated with the acquisition of patent and technology rights during the spin-off process.
General and administrative costs, meantime, fell to $700,000 from $1 million.
At the end of the second quarter, RXi had cash and cash equivalents totaling $7.6 million, which it said should be sufficient to fund operations into the second quarter of next year.