Diffusion Pharmaceuticals Inc. (NASDAQ:DFFN)
Diffusion Pharmaceuticals Inc. (NASDAQ:DFFN) Q1 2017 net loss widened to (-$28.6) million compared to a net loss of (-$6.2) million as of Q1 2016. The clinical stage biotechnology company attributes the increase to warrant related expenses that totaled $26 million in the quarter.
Diffusion Pharmaceutical Q1 Results
Research and development expenses dropped to $1 million from $2.4 million. The drop was attributed to a decrease in expenses related to the pancreatic cancer program as well as animal toxicology program. General and Administrative expenses were also down, coming in at $1.6 million compared to $3.9 million as of last year same quarter. The company attributes the drop to a decrease in costs attributable to reverse merger transaction
Diffusion Pharmaceuticals Inc. (NASDAQ:DFFN)’s net cash used in operating activities totaled $3.4 million compared to $4.6 million as of the end of Q1 2016. During the quarter, Diffusion Pharmaceutical incurred $25.6 million in warrant related expenses associated with a private placement of its stock. The company raised a total of $25 million from the oversubscribed private placement of its Series A convertible stock.
Cash and cash equivalent as of the end of the quarter totaled $12.2 million.
TSC Clinical Trial
According to CEO David Kalergis, completion of a private placement in the quarter provides the company with much needed financial muscle. Diffusion Pharmaceuticals Inc. (NASDAQ:DFFN) intends to use part of the funds to complete its clinical development strategy.
“[…] we believe we are now well positioned to advance our clinical development strategy for our lead product candidate, Tran’s sodium crocetinate (TSC). We are in dialogue with the U.S. FDA regarding the design of a Phase 3 trial of TSC in newly diagnosed inoperable GBM patients, and plan to complete a protocol review in the third quarter of 2017,” said Mr. Kalergis
The FDA signing off the final protocol design for the phase 3 trial of TSC will allow the study to begin at the end of the year. The drug is being developed as a novel treatment for pancreatic cancer that currently accounts for 7% of all cancer deaths in the U.S
Last month, the biotechnology company was awarded a U.S Patent for TSC. Dubbed Bipolar Trans Carotenoid Sales and Their Uses, the patent expands coverage of TSC to five hypoxia-related conditions. TSC is currently being used in Oncology, stroke and neurodegenerative disease indications.
Diffusion Pharmaceuticals Inc. (NASDAQ:DFFN) stock was up by 5.61% in Thursday trading session ending the day at highs of $3.20 a share.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance.