Can Up Move Continue for Repros Therapeutics Inc. (NASDAQ:RPRX)

Repros Therapeutics Inc. (NASDAQ:RPRX)

Repros Therapeutics Inc. (NASDAQ:RPRX)

Shares of Repros Therapeutics Inc. (NASDAQ:RPRX) gained 64.8% on huge volume in Friday’s trading session to end the week at $0.53 a share. However, the biopharmaceutical company continues to trade in a strong downtrend after coming under pressure earlier this year.

Repros Therapeutics Inc. (NASDAQ:RPRX) is down by more than 50% for the year as investor confidence on the stock continues to drop. Failure of the company to turn in a profit from in recent years has been the focal point of concern for investors.

Repros Therapeutics Inc. (NASDAQ:RPRX)

Financial Results Concern

For the three months ended June 30, 2017, Repros Therapeutics Inc. (NASDAQ:RPRX) posted a net loss of (-$2.2) million or (-$0.08) a share, compared to a net loss of (-$4.3) million reported last year. The company attributes the decrease to lower clinical development expenses relating to Proellex and enclomiphene.

Net Loss for the first six months of the year totaled $8.1 million compared to $9.1 million for the corresponding period last year. Total revenue and income decreased to $7,000 for the three months ended June 30, 2017, compared to $15,000 reported last year. The decrease was primarily due to lower cash balance as compared to the corresponding period last year.

General and Administrative expenditure dropped 14% in the second quarter to $906,000 due to a decrease in non-cash stock-based compensation. However, the expenditure was up by 121% for the first six months of the year to $4.7 million, mainly because of a $2.8 million charge relating to the departure of a former executive.

Repros Therapeutics Inc. (NASDAQ:RPRX) had cash and cash equivalents of $3.8 million as of June 30, 2017, compared to $8.7 million as of December 31, 2017. The decline was primarily due to increased expenditure on clinical development programs as well as administrative costs. No funds were used for investing purposes in the first half of the year.

Investors are closely awaiting the outcome of the third quarter financial results. Depending on its outcome the stock could trade in either way as it will highlight the company’ long-term prospects heading into the year-end.

Class Action Lawsuit

Separately, Repros Therapeutics Inc. (NASDAQ:RPRX) is facing a wave of class action lawsuits over claims its officers and directors engaged in securities fraud and other unlawful business practices. The claims stem from a decision by the U.S. Food and Drug Administration to place the company’s Proellex program on clinical hold pending the review of all existing liver function safety data.

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: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Author: Monica Gray

Monica has an undergraduate degree in Accounting and an MBA she earned - with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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