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Earnings Miss at Repros

Zacks Equity Research

Repros Therapeutics Inc. (RPRX) recently reported second quarter 2012 loss of 21 cents per share, wider than the Zacks Consensus Estimate of a loss of 17 cents but narrower than the year-ago loss of 30 cents per share. Lower year-over-year loss was attributable to a decrease in clinical development expenses of the male fertility candidate, Androxal.

Repros did not record any revenues (including interest income) during this quarter, unlike the prior-year period which recorded revenues of $1000. The decrease in the top line resulted from the absence of interest income.

Quarterly Details

During the quarter, research and development (R&D) expenses decreased 4% year over year to $2.2 million. The decrease was attributable to lower clinical development expenses on Androxal due to the completion of a phase II b study in men with secondary hypogonadism.

However, the decrease was partially offset by higher clinical development expenses related to the commencement of a phase II vaginal study with female reproductive health candidate, Proellex.

General and administrative (G&A) expenses declined 35% year over year to $0.9 million. The decrease was primarily due to lower stock-based compensation expenses.

Pipeline Update

In July 2012, Repros reported that the Proellex phase II study for the treatment of uterine fibroids showed consistent efficacy in three endpoints after 4 months of trial. Repros stated that the study will complete enrollment by the end of August 2012. The company expects to report results from the study by the end of 2012 and move to phase III in the first quarter of 2013.

Our Recommendation

We currently have an Underperform recommendation on Repros. The stock carries a Zacks #3 Rank (Hold rating) in the short run.

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