Intellipharmaceutics International Inc. (IPCI) reported third quarter ending Aug 31, 2013 net loss per share of 10 cents, in line with the Zacks Consensus Estimate, but wider than the year-ago loss of 8 cents.
Intellipharmaceutics did not generate any revenue.
During the quarter, Intellipharmaceutics provided an update on its Rexista oxycodone development program which included – (i) results from the physico-chemical studies demonstrate that Rexista oxycodone when pulverized and reduced to particles should be difficult and time consuming to syringe or inject and also inefficient to snort or inhale (ii) stability studies revealed that the Rexista oxycodone formulation was stable for storage even at a high temperature and relative humidity and (iii) successful phase I study of its Rexista abuse-deterrent oxycodone, designed around its proprietary drug delivery system.
Intellipharmaceutics closed an underwritten public offering in Jul 2013 collecting gross proceeds of $3.1 million. Intellipharmaceutics intends to utilize the net proceeds of $2.5 million from the public offering, for expenses related to bioequivalence studies for the development of its pipeline. The company also has plans to use the net proceeds for working capital and other general corporate purposes.
Research and development expenses fell 23% year over year to $1 million (including stock based compensation expenses of $0.2 million). Selling, general and administrative expenses fell 14.3% year over year to $0.6 million (including stock based compensation expenses of $0.1 million).
Intellipharmaceutics carries a Zacks Rank #4 (Sell). Currently, companies like Roche Holding (RHHBY), Seattle Genetics, Inc. (SGEN) and Actelion Ltd. (ALIOF) look more attractive with a Zacks Rank #1 (Strong Buy).