Cerecor Inc (NASDAQ:CERC)
Cerecor Inc (NASDAQ:CERC) shares are the subject of several different news stories and are marginally up at noon EST. Over 1.5 million shares have traded hands which is much higher than their 30-day, daily average of 823,000. Today the biotech company announced Q2 financials, a $25 million rights sale to its CERC-501 treatment, and the retirement of its CEO.
Cerecor Inc (NASDAQ:CERC) reported a Q2 2017 net loss of (-$1.8) million, or (-$0.14) per share compared to a net loss of (-$3.5) million, or (-$0.41) per share, for the same period in 2016. Q2 2017 Research and development expenses decreased to $0.5 million, compared to $2.5 million for Q2 2016. This decrease was driven primarily by the completion of Cerecor’s Phase 2 clinical trials for CERC-301 and CERC-501 in late 2016. General and administrative expenses for Q2 2017 decreased to $1.4 million, versus $1.6 million for Q2 of 2016. This decrease was driven primarily by a reduction in overall operations due to Cerecor’s limited cash position. As of June 30, 2017, cash and cash equivalents were $5.5 million and current liabilities were $1.7 million.
Today Cerecor Inc (NASDAQ:CERC) also announced that it sold all of its rights to CERC-501 to Janssen Pharmaceuticals, Inc. for $25 million. $3.75 million of that sum was deposited into a 12-month escrow account to secure future indemnification obligations to Janssen, as well as a possible $20 million regulatory milestone payment.
CERC-501 is an oral kappa opioid receptor antagonist that Cerecor developed as an adjunctive treatment of major depressive disorder (“MDD”) and for substance use disorders. CERC-501 has been observed to have activity in animal models of depression, substance withdrawal and dependence, and has been generally well-tolerated in five human clinical trials.
Cerecor CEO News
Lastly, today Cerecor Inc (NASDAQ:CERC) announced the retirement of Dr. Uli Hacksell, Cerecor’s President and CEO, effective Monday, August 14, 2017. John Kaiser, Chief Business Officer, has been appointed Interim CEO. Cerecor’s Board of Directors has initiated a search for a permanent Chief Executive Officer. Dr. Hacksell will stay on as Chairman of Cerecor’s Board.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.