Zevra Therapeutics Inc (ZVRA) Reports Q3 2023 Financial Results
Zevra Therapeutics Inc (NASDAQ:ZVRA) reported a net revenue of $2.9M for Q3 2023.
The company ended Q3 2023 with $83.4M in cash, cash equivalents, and investments.
ZVRA is on track to resubmit the Arimoclomol NDA by the end of the year.
The proposed acquisition of Acer Therapeutics is expected to close in Q4 2023.
On November 7, 2023, Zevra Therapeutics Inc (NASDAQ:ZVRA), a rare disease therapeutics company, released its financial results for the quarter ended September 30, 2023. The company reported a net revenue of $2.9 million for Q3 2023, matching the net revenue of the same quarter in the previous year. The revenue components for the current quarter include ongoing royalties from AZSTARYS and reimbursements from the French early access program for arimoclomol.
Financial Highlights
Research and development (R&D) expenses for Q3 2023 were $12.3 million, a significant increase from $5.4 million in Q3 2022. This increase was primarily driven by the ongoing Phase 2 clinical trial in KP1077 and the ongoing work to prepare the arimoclomol NDA for resubmission. General and administrative (G&A) expenses were $5.8 million for Q3 2023, compared to $4.0 million in Q3 2022. The increase was primarily related to an increase in personnel costs and professional fees associated with commercial and business development activities.
The net loss for Q3 2023 was ($14.0) million, or ($0.40) per basic and diluted share, compared to a net loss of ($6.6) million, or ($0.19) per basic and diluted share for the same period in 2022. As of September 30, 2023, total cash, cash equivalents, and cash investments were $83.4 million, a decrease of ($4.0) million compared to $87.4 million as of June 30, 2023. The decrease was driven, in part, by increased third-party R&D costs related to the KP1077 clinical trial program, the arimoclomol program, and increased G&A expenses during the period.
Future Outlook
Neil F. McFarlane, President and Chief Executive Officer of Zevra, stated,
This is a pivotal time for Zevra as we advance our pipeline programs toward multiple potential value inflection points. As we look to the end of 2023 and into 2024, were focused on three key priorities. First, to close the proposed Acer acquisition and, if consummated, deliver value to patients by commercializing OLPRUVRA. Second, to resubmit the arimoclomol NDA. Third, to complete the Phase 2 trial in idiopathic hypersomnia and prepare to advance KP1077 into Phase 3. We are making solid progress towards achieving our mission of building a patient-focused leading rare disease company."
The company's cash, cash equivalents, and investments are forecasted to support its operations into 2026. The proposed acquisition of Acer Therapeutics is on track to close in Q4 2023, which will diversify Zevras revenue with FDA-approved OLPRUVA for urea cycle disorders (UCDs).
Explore the complete 8-K earnings release (here) from Zevra Therapeutics Inc for further details.
This article first appeared on GuruFocus.
