Neothetics Inc. (NASDAQ:NEOT)

Neothetics Inc (NASDAQ:NEOT) Tumbles To 52-Week Low

Neothetics Inc (NASDAQ:NEOT)

Shares of Neothetics Inc (NASDAQ:NEOT) tumbled 18.04% after the company reported second quarter financial results that fell short of Wall Street expectations. The selloff came on the clinical stage pharmaceutical company reporting a wider than expected second quarter net loss of (-$2.8) million compared to (-$2.7) million reported a year ago.

Neothetics Inc (NASDAQ:NEOT)
One month NEOT stock price chart

Stock Performance

Thursday’s sell off pushed Neothetics Inc (NASDAQ:NEOT) on the brink of its 52 week low of $0.30 as it continues to trade in a tight $0.30-$0.46 trading range. Neothetics sentiments turned sour early last month after the stock gapped lower from highs of $2.3 a share to current lows of $0.37 a share.

The stock continues to trade below its 20 days moving average having also tanked more than 60% below its 50-day moving average. The stock is currently trading at all-time lows having tanked from highs of $2.6 a share as of June.

The clinical stage pharmaceutical develops therapeutics for fat reduction and body contouring. Its lead product is LIPO-202, an injectable formulation for the reduction of localized fat deposits under the chin as well as for the deduction of central abdominal reduction.

The board of directors recently approved plans to initiate acquisitions as well as partnerships as part of an effort that seeks to expand Neothetics Inc. (NASDAQ:NEOT) footprint into new areas of growth. Pursuit of strategic alliance is also geared towards discovering and maximizing shareholder value. The company has already engaged the services of Oppenheimer and Co as its financial advisor for the new initiative.

Neothetics Inc (NASDAQ:NEOT) has also announced plans to streamline its operations as it seeks to preserve capital and cash resources. Plans are underway to trim the company’s workforce from six to two as the firm seeks to reduce its wage bill.

Q2 Earnings

The cost reduction drive follows an increase in research and development expenses in the second quarter to $1.6 million from $1.4 million. However, for the six months ended June 30, 2016, R&D expenditure dropped to $3.1 million from $4.7 million a year earlier. Neothetics attributes the decline to completion of a majority of close out activities for AbCONTOUR1 and AbCONTOUR2 U.S. Phase 3 clinical trials

Neothetics Inc (NASDAQ:NEOT) General and administrative expenses soared to $1.3 million from $1.1 million a year earlier. However, for the six months ended June 30, 2017, total general administrative expenses dropped to $2.7 million from $3.6 million a year earlier. The company attributes the decline to reduced personnel expenses.

Neothetics Inc. (NASDAQ:NEOT) exited the second quarter with cash and cash equivalent of $7.6 million compared to $11.5 million as of December 31, 2016.

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.

Don’t miss out! Stay informed on $NEOT and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Neothetics Inc (NASDAQ:NEOT)

Neothetics Inc (NASDAQ:NEOT) Announces Disappointing Top-Line Results

Neothetics Inc (NASDAQ:NEOT)

Neothetics Inc (NASDAQ:NEOT) has announced top-line efficacy and safety results from their Phase 2 proof-of-concept study, LIPO-202-CL-31, used in reducing submental subcutaneous fat. Neothetics, Inc is a clinical stage pharmaceutical company engaged in the development of therapeutics targeting the aesthetic market. LIPO-202 showed no improvement in efficacy or separation from placebo.

While commenting on the results, Kim Kamdar, Ph.D a member of the company’s Board of Directors and Operating Committee said they are evaluating the situation and determining the way forward for the company. He added that the main objective is always to maximize value for the company’s shareholders.

Head of Neothetics Inc (NASDAQ:NEOT)’s Development Committee, Dr. Dan Piacquadio, expressed displeasure in the results noting that they were too ambiguous. LIPO-202-CL-31 is a randomized, multi-cancer double-blind, placebo-controlled Phase 2 proof of concept study meant to establish the efficacy and safety of two doses of LIPO-202 against placebo in reducing submental bulging caused by subcutaneous fat.

In the trial, a total of 162 subjects were admitted and spread out over 12 sites across the United States. All subjects were randomized and administered with up to either 0.3 mcg, or 3.0 mcg dose of LIPO-202 or placebo. Subjects were also administered with up to 30 subcutaneous LIPO-202 or placebo injections once per week for a period of eight weeks. This was followed by visits, to evaluate the efficacy and safety of the drug, one week and four weeks after the last treatment.

The endpoints of the trial included both efficacy and safety measurements. Efficacy measures evaluated any improvements in the patient’s submental region as assessed by both clinician and patient and covering all subject satisfaction as well as evaluation of submental fat thickness by calipers.

Neothetics Inc (NASDAQ:NEOT) held its Annual General Meeting on June 20, 2017. As of April 24, 2017 the company had a total of 13,831,747 outstanding shares of the Company’s common stock. During the meeting, the company presented a total of 10,776,643 shares of the Company’s common stock by proxy or in person. The shareholders also elected a Class III director in addition to approving the ratification of independent registered public accounting firm.

The shareholders elected Kim P. Kamdar, Ph.D. as a Class III director and will hold the position up to the 2020 Annual Meeting of Stockholders and up to that time when her successor is elected.

Neothetics Inc (NASDAQ:NEOT) lost 69.52% and closed its day at $0.707.

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.

Don’t miss out! Stay informed on $NEOT and receive breaking news on other hot stocks by signing up for our free newsletter!

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.