Can Bioline RX Ltd (NASDAQ:BLRX) Sustain Momentum?

Bioline RX Ltd (NASDAQ:BLRX)

Bioline RX Ltd (NASDAQ:BLRX) has announced its second quarter’s financial results and the stock rose by 3.51% to close the day at $1.18 a share. The clinical-stage biopharmaceutical firm also announced it embarked on plans to start a Phase III study on BL-8040 after holding a meeting with the U.S. Food and Drug Administration.

Bioline RX Ltd (NASDAQ:BLRX)
One month Bioline stock price chart

An investment in the biopharmaceutical firm was made by BVF Partners, currently its biggest shareholder. This increased the stake of BVF Partners in BioLineRx to 24.9%. The new investment by BVF Partners, which is valued at $9.6 million, came at a per-unit price of $1.13

“We are also pleased to have received a strong vote of confidence from BVF Partners last month. The $9.6 million direct investment we received will allow us to accelerate the development of our clinical programs,” Bioline RX Ltd (NASDAQ:BLRX)’s Chief Executive Officer, Philip Serlin, said.

Research and development

In the financial results, expenses arising from research and development for the second quarter were $4 million. This was a 48.2% increase from the $2.7 million in a similar quarter a year ago. These expenses resulted from spending on BL-8040 and AGI-134. Expenses from sales and marketing activities for the June quarter amounted to $0.3 million and this was largely the same as what was incurred a year ago in a similar period.

Administrative expenses

Expenses attributed to general and administrative activities amounted to $0.8 million and this was almost the same as a similar quarter in 2016. Net financial income for Bioline RX Ltd (NASDAQ:BLRX) also increased in this second quarter to $0.3 million compared to last year’s second quarter net financial income which was $0.1 million.

In the second quarter the operating loss increased to $5.2 million compared to the $3.9 million recorded in a similar quarter last year. Net loss for the second quarter was $4.9 million.

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: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.