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Zosano Pharma Corp (NASDAQ:ZSAN) Q3 Net Loss Widens

Zosano Pharma Corp (NASDAQ:ZSAN)

Zosano Pharma Corp (NASDAQ:ZSAN)

Zosano Pharma Corp (NASDAQ:ZSAN) shares gained 3.70% after the clinical stage biopharmaceutical company reported financial results and an operational update for Q3 2017. The unveiling of the financial results comes a day after the company initiated long-term safety study of zolmitriptan in migraine patients.

Zosano Pharma Corp (NASDAQ:ZSAN)

Zosano’s Net Loss

Zosano generated a net loss of (-$7.9) million or (-$0.20) a share in the third quarter, a slight increase from a net loss of (-$7.4) million, or (-$0.52) a share, reported last year. It awaits to be seen how investors will react to the wider than expected net loss as the stock continues to trade in a downtrend.

The stock has shed more than 70% in market value since March an underperformance that has plunged it to this year’s lows. Zosano Pharma Corp (NASDAQ:ZSAN) is currently trading near its 52-week low of $0.48 and in dire need of new catalyst if it’s to bounce back.

Research and development expenses in the quarter increased to $5.7 million from $5.1 million reported in Q3 of 2016. General and Administrative expenses remained unchanged at $2 million. Zosano exited the quarter with cash and cash equivalent of $19.8 million debt of $8.2 million and 39.2 million common shares outstanding.

During the quarter, the clinical stage biopharmaceutical company made important strides in the development of its pipeline of drugs. In September, the company presented data from Phase 2/3 ZOTRIP study evaluating M207 as a novel treatment for a migraine.

“The company continues to execute on our path to an NDA, including the initiation of our long-term safety study on November 7 and the continued scale up of manufacturing to support potential commercialization, pending approval of M207 by the FDA,” said CEO, John Walker.

Share Purchase Agreement

Separately, Zosano Pharma Corp (NASDAQ:ZSAN) has entered into a common share purchase agreement with Chicago-based institutional investor, Lincoln Park Capital Fund LLC. Pursuant to the approval of the SEC, the company is to sell shares worth $35 million to the investor.

Under the terms of the agreement, Zosano Pharma Corp (NASDAQ:ZSAN) is to control the timing and the amount of any investment by LPC. The investor will also be required to make purchases based on the purchase agreement and prevailing market prices at the time of each sale.

Zosano Pharma Corp (NASDAQ:ZSAN) plans to use proceeds from the purchase agreement to fund long-term study of its lead product candidate M207, and for general corporate purposes.

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.

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