What Did Regulus Therapeutics Inc (NASDAQ:RGLS) Achieve in Q4?

Regulus Therapeutics Inc (NASDAQ:RGLS)

Regulus Therapeutics Inc (NASDAQ:RGLS) reported Q4 2016 earnings after market close on March 2. It also offered an update on its business, especially pipeline programs.

Regulus’ Q4 earnings at a glance

The company extended its mixed earnings track record in Q4. EPS loss of $0.38 widened from $0.14 a year earlier and was also worse than EPS loss of $0.37 that analysts were expecting. Looking back, Regulus’ has topped earnings expectations twice and missed twice over the last four quarters.

Revenue of less than $0.1 million in the latest quarter was in sharp contrast to revenue of $10.9 million in the same period a year earlier. Furthermore, the latest revenue figure came short of consensus estimate of $10.9 million.

Higher R&D expenses drag earnings

Regulus Therapeutics Inc (NASDAQ:RGLS) booked higher expenses related to research and development than it did a year earlier. R&D costs of $15 million were more than $12.8 million a year ago. Spending on clinical and pre-clinical programs drove Regulus’ R&D spending up and exerted downward pressure on earnings.

However, the company still management to maintain prudent financial controls as G&A expenses of $4.8 million in the latest quarter was down from $5.4 million a year earlier. Regulus said the decrease in S&G expenses was supported by lower staff expenses and stock-based compensations.

Cash down significantly

Regulus concluded 2016 with cash and equivalents totaling $76.1 million, significantly down from $115.3 million at the end of 2015.

Business condition update

Regulus Therapeutics Inc (NASDAQ:RGLS) shared several updates on its business condition. One of them was the unveiling of two new clinical candidates namely RGLS5040 (anti-miR-17) and RGLS4326 (anti-miR-27). It said RGLS5040 is being developed as a treatment of cholestatic diseases, while RGLS4326 is aimed at the kidney treatment market. The company intends to seek Investigational New Drug approvals for the candidates in the back half of 2017.

Regulus also updated on the Phase 1 MAD and Phase 2 HERA studies of its candidate RG-012, which is aimed at patients with various conditions of Alport syndrome. It initiated the MAD study in Q4 2016 and expects to release topline safety data from the study in Q2 2017. Regulus said HERA study of RG-012 will resume in the back half of 2017 after concluding MAD trial, with interim data from HERA study expected in mid-2018.

Stock movements

The market reacted positively to Regulus Therapeutics Inc (NASDAQ:RGLS)’s earnings and business updates, closed flat at $1.10 on Friday. However, the stock has declined more than 50% so far in 2017 and remains down more than 80% over the past one year.

3/3/2017
Ticker Symbol RGLS
Last Price a/o, 4:02PM EST $1.10
Average Volume 1.02Million
Market Cap (mlns) $58.22
Sales (mlns) $12.00
Shares Outstanding (mlns) 50.55
Share Float (mlns) 36.93
Shortable Yes
Optionable Yes
Inside Ownership 42.92%
Short Float 10.22%
Short Interest Ratio 4.43
Quarterly Return -56.86%
YTD Return -51.11%
Year Return -84.79%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities 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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