Reviva Pharmaceuticals Holdings Inc Reports Q3 2023 Financial Results
Reviva Pharmaceuticals Holdings Inc (NASDAQ:RVPH) announced successful Phase 3 trial results for schizophrenia treatment.
Q3 2023 net loss widened to $10.5 million compared to $3.5 million in Q3 2022.
Cash reserves decreased to $5.0 million from $18.5 million at the end of 2022.
Anticipated topline data from 1-year open-label extension trial expected in Q4 2024.
On November 14, 2023, Reviva Pharmaceuticals Holdings Inc (NASDAQ:RVPH) released its 8-K filing, detailing the financial results for the third quarter ended September 30, 2023, and providing an overview of recent business highlights. The company reported a significant increase in net loss and a decrease in cash reserves compared to the previous year.
Financial Performance Overview
For the third quarter of 2023, RVPH reported a net loss of approximately $10.5 million, or ($0.44) per share, a substantial increase from the net loss of approximately $3.5 million, or ($0.18) per share, for the same period in 2022. The company's cash position also saw a decline, with cash reserves totaling approximately $5.0 million as of September 30, 2023, down from approximately $18.5 million as of December 31, 2022.
Year-to-Date Financials
Looking at the first nine months of the fiscal year 2023, RVPH's net loss deepened to approximately $29.5 million, or ($1.30) per share, compared to a net loss of approximately $16.2 million, or ($0.87) per share, for the same period in 2022.
Recent Business Highlights and Clinical Advancements
RVPH's clinical program for brilaroxazine, a treatment for schizophrenia, has shown positive outcomes. The global Phase 3 RECOVER trial met all primary and secondary endpoints with significant reductions across all major symptom domains at week 4 with 50 mg of brilaroxazine versus placebo. The company's CEO, Laxminarayan Bhat, Ph.D., highlighted the consistent efficacy and safety findings across Phase 2 REFRESH and Phase 3 RECOVER trials, reinforcing brilaroxazines competitive profile. RVPH anticipates reporting long-term data from the open-label extension trial in Q4 2024 and initiating a registrational Phase 3 RECOVER-2 trial in Q1 2024, which will support a planned New Drug Application (NDA) submission to the FDA in 2025.
Financial Tables Summary
The condensed consolidated balance sheets show a stark decrease in cash and cash equivalents from the end of 2022 to September 30, 2023. Total assets have decreased from approximately $18.9 million to approximately $5.4 million in the same period. The total liabilities and stockholders' equity also reflect a decrease, with total liabilities increasing from approximately $6.6 million to approximately $13.9 million, and total stockholders' equity turning from a positive $12.3 million to a negative $8.5 million.
The condensed consolidated statements of operations reveal a significant increase in research and development expenses, from approximately $2.3 million in Q3 2022 to approximately $8.7 million in Q3 2023. General and administrative expenses also increased from approximately $1.3 million to approximately $2.0 million in the same period. These increases contributed to the overall net loss for the quarter.
Analysis of RVPH's Performance
While RVPH has made promising clinical advancements with brilaroxazine, the financial results indicate a challenging period for the company with increased operating expenses and a significant reduction in cash reserves. The widened net loss and increased liabilities underscore the need for careful financial management as the company moves forward with its clinical trials and towards potential commercialization.
Investors and stakeholders will be closely monitoring RVPH's progress, particularly the upcoming milestones such as the long-term data from the open-label extension trial and the initiation of the Phase 3 RECOVER-2 trial, which are critical for the company's future success and potential market entry.
For more detailed information on Reviva Pharmaceuticals Holdings Inc's financials and clinical advancements, interested parties are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Reviva Pharmaceuticals Holdings Inc for further details.
This article first appeared on GuruFocus.
