COCP: UPDATE: Cocrystal Pharma releases 2022 2nd quarter results and provides an update on the current pipeline programs.
NASDAQ:COCP
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Cocrystal Pharma (NASDAQ:COCP) reported 2022 2nd quarter results on August 15, 2022. For the quarter, the company reported no revenues. General & Administrative expenses were $1.38 and million and Research & Development expenses came in at $2.36 million for the quarter. As the company moves forward on clinical trials for its Covid-19 and Influenza A programs, we expect R&D to increase throughout the year on sequential basis.
The company recorded a large non-cash goodwill impairment during the quarter totaling $19.0 million which eliminated all goodwill on the balance sheet. During the first six months of 2022, the company saw a significant decrease in its stock price resulting in an overall reduction in market capitalization and recorded net book value exceeded COCP’s market capitalization as of June 30, 2022. Pre-impairment, the carrying value of the reporting unit exceeded the market capitalization of the company as of June 30, 2022, so the company concluded that the goodwill balance was impaired in its entirety resulting in the impairment charge. The company also had an unusual item expense of $1.6 million related to litigation with an insurer in which the insurance company obtained a summary judgement in that amount. Pending the outcome of the Cocrystal’s appeal, a payment of $1.6 million was paid to the court.
Adjusted net loss, which eliminates unusual items, was ($3.7) million, or ($0.04) per diluted share, which was in line with our expectations. Net cash used in operating activities for the 1st half of the year was $7.6 million and the company reported no capital expenditures during the period. There were no capital raises during the quarter from either the equity markets or debt financing.
The company’s unrestricted cash balance at quarter end was $51 million and total liabilities were only $3.0 million, none of which is considered traditional debt.
CFO and co-interim CEO Jim Martin stated, “We continue to be well positioned to execute on our clinical and regulatory goals given our clean capital structure, cost-efficient business model and a cash balance we believe is sufficient to fund planned operations into 2024. We chose to conduct the Phase 2a influenza A trial with PB2 inhibitor CC-42344 in the UK due to the efficiency and data we expect from a human challenge model, as opposed to a traditional clinical trial model. Under the human challenge model healthy adults will be deliberately infected with influenza virus under carefully controlled conditions, which we believe will hasten trial enrollment and ensure subjects are infected with influenza A. Our niche contract research partner, Open Orphan, is one of the premier specialists in providing this unique clinical model.”
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