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Our Stocks to Watch tomorrow include La Jolla Pharmaceutical Co. (Nasdaq: LJPC), IJJ Corp. (OTC: IJJP), Dragon Capital Group Corp. (OTC: DRGV), NextWave Wireless Inc. (Nasdaq: WAVE), TorreyPines Therapeutics Inc. (Nasdaq: TPTX) and Somaxon Pharmaceuticals, Inc. (Nasdaq: SOMX).
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LA JOLLA PHARMACEUTICAL COMPANY (NASDAQ: LJPC)
"Up 35.05% on Wednesday"
Detailed Quote: http://www.otcpicks.com/quotes/LJPC.php
La Jolla Pharmaceutical Company is dedicated to improving and preserving human life by developing innovative pharmaceutical products. The Company's leading product in development is Riquent®, which is designed to treat lupus renal disease by preventing or delaying renal flares. Lupus renal disease is a leading cause of sickness and death in patients with lupus. The Company has also developed potential small molecule drug candidates to treat various other autoimmune and inflammatory conditions.
July 23 - La Jolla Pharmaceutical Company Files Form 8-K with SEC
La Jolla Pharmaceutical Company (Nasdaq: LJPC) recently filed Form 8-K with the SEC, partially reading as follows:
Item 8.01 Other Events — Dismissal of BioMarin Lawsuit
On July 17, 2009, La Jolla Pharmaceutical Company (the "Company"), BioMarin Pharmaceutical Company ("BioMarin") and the Company's directors executed and delivered a Settlement Agreement and Mutual Release (the "Release"), pursuant to which (i) BioMarin released all claims previously asserted against the Company and its directors, as described in the Company's Current Report on Form 8-K filed June 12, 2009 (the "Form 8-K"), and (ii) the Company and its directors released all counterclaims that they may have otherwise asserted against BioMarin. Pursuant to the Release, BioMarin is required to dismiss the Lawsuit (defined below) with prejudice.
Other than the mutual release of claims and the dismissal of the Lawsuit, no other consideration is provided for in the Release and no amounts will be paid to BioMarin. BioMarin had sued the Company and its directors in California Superior Court (the "Lawsuit"), alleging breach of contract, breach of covenant of good faith and fair dealing, and breach of fiduciary duty relating to the Company's registration of stock sold to BioMarin in January 2009 in connection with a license and development agreement for Riquent. On July 17, 2009, La Jolla Pharmaceutical Company (the "Company"), BioMarin Pharmaceutical Company ("BioMarin") and the Company's directors executed and delivered a Settlement Agreement and Mutual Release (the "Release"), pursuant to which (i) BioMarin released all claims previously asserted against the Company and its directors, as described in the Company's Current Report on Form 8-K filed June 12, 2009 (the "Form 8-K"), and (ii) the Company and its directors released all counterclaims that they may have otherwise asserted against BioMarin.
Pursuant to the Release, BioMarin is required to dismiss the Lawsuit (defined below) with prejudice. Other than the mutual release of claims and the dismissal of the Lawsuit, no other consideration is provided for in the Release and no amounts will be paid to BioMarin. BioMarin had sued the Company and its directors in California Superior Court (the "Lawsuit"), alleging breach of contract, breach of covenant of good faith and fair dealing, and breach of fiduciary duty relating to the Company's registration of stock sold to BioMarin in January 2009 in connection with a license and development agreement for Riquent.
IJJ CORPORATION (OTC: IJJP)
"Up 328.57% on Wednesday"
Detailed Quote: http://www.otcpicks.com/quotes/IJJP.php
IJJ Corporation is a Diversified Technologies (DT) company focused on developing high tech solutions for the government and private sector for Rapid decision information processing. The technologies include voice, data, and video solutions, for Rapid Conferencing Services, Disaster Shelter Recovery Systems, Mobile Disaster Management Systems, Medical Hospital Advisor Systems, IT Management and Consulting Services, Secure Data Center Services, Network Operation Centers, and Enterprise Management Power Suites. The Company's objective is to continue to develop and integrate services and products in order to provide the most comprehensive, cutting edge solutions to its clients.
August 26 - IJJ Corp. Completes Acquisition of Dynamic European Technology Company
IJJ Corp. (OTC: IJJP) announced that the Company has acquired V-Clouds, a dynamic European technology company, for 4 million shares of IJJ Corp. (IJJC) restricted shares valued at $.25 per share from Cloud Technologies (OTC: CLDZ). V-Clouds' main focus is in the Email Management and Security Space. The V-Clouds solution is for small businesses and large enterprises, as well as service providers. Dave Lovatt and Owen Dukes will remain with V-Clouds, with Dave Lovatt remaining on the Board as its President.
As a global provider of Email Management Software, V-Clouds' hosted service and platforms are developed specifically for large IT Service Providers with their own Datacenter infrastructure. Delivering 'Cloud Based' services through a Secured environment as a Service model, V-Cloud allows email to be scanned for spam, viruses, and breaches in corporate compliance policy and monitors and polices Data Leaks within corporate emails. All services are managed through one, easy to administer web portal and are charged on a 'per user, per month' basis making working with Cloud a simple process.
V-Clouds' mission is to deliver true Software as a Service Business Models. Under the IJJC business model V-Clouds will be able to continue its global branding of the Company's Email Management Product. V-Clouds will expand further its established distribution network throughout the world from its offices in both Europe and North America using additional resources provided by IJJC. V-Clouds' vision for email management for the future is the globalization of their solution by the sharing and pooling of data from email in every territory around the world. Some of V-Clouds' partners include Tridex Systems, Propalms, Inc., and Global DL.
"We are excited about the relationship with IJJ Corp. They have the resources as well as the engineering and management staff to help V-Clouds get to the next level," stated David Lovatt, President of V-Clouds, Inc.
"The acquisition of V-Clouds gives us another synergistic product to add to our portfolio. We believe that with V-Clouds' global relationships, we will be able to increase the sales of our solutions worldwide," stated Clifford Pope, CEO of IJJ Corp.
DRAGON CAPITAL GROUP INCORPORATED (OTC: DRGV)
"Up 101.67% on Wednesday"
Detailed Quote: http://www.otcpicks.com/quotes/DRGV.php
Dragon Capital Group Corporation (OTC: DRGV) is a holding company serving as a business incubator for emerging Chinese businesses. Dragon currently controls subsidiaries operating in high-tech, IT products and services and management consulting. Three of the subsidiaries are growing strong recurring revenue streams from electronics hardware distribution and network integration. Dragon's wholly owned management firm, Shanghai Dragon, is expected to realize its initial revenue and profits in 2007. The company's other three subsidiaries, still in the emergent stage, are focused on wireless Internet applications, mobile business solutions, software development, enterprise management, computerized automations systems integration and network integration.
August 26 - Market Advisors, Inc. Issues 'Initiating Coverage' Report on Dragon Capital Group With a Speculative Buy and a Price Objective of $0.047 per Share
A new research report has been issued regarding Dragon Capital Group Corporation (OTC: DRGV) by Market Advisors, Inc. "Fundamental Analysis for Today's Investments" with a "Speculative Buy" and a $0.047 intermediate price objective. To view the report, please visit www.dragoncapital.us, a leading holding company of emerging high-tech companies in China.
Dragon Capital Group's (OTC: DRGV) mission is to be a leader in the development of wireless 3G-based applications and business solutions. Two companies that Dragon has acquired are among the leading providers of mobile Internet applications and business solutions in China.
On June 30, 2009, total assets were $14.6 million compared to $15.9 million at December 31, 2008. In addition, 2009, shareholder equity was $7.1 million and total current assets were $14.3 million with working capital of approximately $7.8 million. Revenue for the first six months of 2009 reached $26.9 million, increasing by 20% from the $22.3 million recorded in the first six months of 2008. Mr. Lawrence Wang, CEO of Dragon Capital Group, stated, "Dragon continues to post increasing sales in this challenging environment."
The Company offers consulting services for US enterprises seeking to invest in China. DRGV directs clients' management of investments in the Shenzhen and Shanghai stock markets Diversified across product categories, end markets, and geographic regions primarily in China. The Company has on board experienced professionals knowledgeable with both the laws and business practices of China. The Company has emerged as a profitable company in a difficult environment and improved in almost all balance sheet items including growing their cash position by approximately 12%. China has encouraged growth in many sectors — an abrupt change from state control.
The Chinese government has relaxed laws and is allowing the formation of rural enterprises and private businesses, significantly opened foreign trade and investment, pulled back on state control over commodity prices, and invested in industrial production. They have also taken positive steps on educating its work force. Because of this, it is hard not to be bullish on China.
China has a vast populace and its large physical size alone marks it as a very powerful global force. Since encouraging the growth of rural enterprises and not focusing exclusively on the urban industrial sector, China has successfully moved millions of workers off farms and into factories without creating an urban crisis. In addition, China has allowed more outside intervention which in turn has spurred foreign investment. As a result, more jobs have been created linking China with world markets.
The Company was founded in 2000 and is led by Mr. Lawrence Wang, who serves as Chairman, CEO and General Manager of Shanghai Yazheng and has been its General Manager since their inception. Mr. Wang's goal is to lead DRGV in the high-growth potential in the universe of Chinese stocks publicly-traded in global stock markets. Analysts agree that over the next twenty to thirty years, it should be a golden period for a rising China. As China's influence of the world markets grows over time, many great investment opportunities will continue to emerge. We currently feel stocks like DRGV and similar stocks in related sectors are more promising than others. Current steps taken by the Chinese government to stimulate the economy will be a boom for many technology stocks. As a result, the sectors with the best potential will be those that stand to benefit from the rising middle class and its increased spending on transportation, food services, and especially consumer electronics, which is right where DRGV is positioned. Most financial professionals will recommend between 10-20% of a portfolio to be placed into international securities. Chinese stocks have been a popular securities selection for investment portfolios in recent years as their economy has been rising steadily. In fact, China has been posting double digit growth numbers for several years, and of particular interest, over the past couple of years when many other countries have faced economic problems.
While investing in stocks always has its risks, just like the US, China also has regulatory bodies in place designed to protect investors. These regulatory bodies monitor which companies are listed on the exchanges; audits are implemented with regularity, and buying and selling of securities are closely regulated. Regardless, any financial decision still needs to be carefully evaluated and should match the investment style and risk tolerance of the investor.
Our positive outlook on Dragon Capital reflects our confidence in a management team focused on growth through acquisition and subsequent exploitation of capital-starved subsidiaries. Management has successfully employed this strategy over the past few years in both strong and weak markets. Current subsidiaries include: Shanghai Yazheng Information Technology Co., Ltd engaged in developing information technology in China by introducing advanced software and hardware products from the US. Shanghai Cnnest Technology Co., Ltd which is dedicated to commercial Third Generation (3G) wireless applications and mobile business solutions. In addition, Dragon also operates Shanghai Zhaoli Technology Co., Ltd, Shanghai Longri Technology Development Co., Ltd and Shanghai Hulce Electronic System Integration Co. Ltd. Please visit www.dragoncapital.us for additional details on these entities.
ABOUT MARKET ADVISORS, INC.
Officers of Market Advisors, Inc. have been in business since 1983 and have provided stock market research for their clients since 1985. Company officials have often been quoted in a wide array of financial publications such as the Wall Street Journal, Investor's Business Daily, Barron's, Forbes Magazine and The Dick Davis Digest to name a few.
NEXTWAVE WIRELESS INCORPORATED (NASDAQ: WAVE)
"Up 242.45% on Wednesday"
Detailed Quote: http://www.otcpicks.com/quotes/WAVE.php
NextWave Wireless Inc. provides a portfolio of next-generation mobile multimedia and wireless broadband technology solutions to the world’s leading mobile handset manufacturers, consumer electronics manufacturers and wireless service providers. From device-embedded mobile multimedia software to digital home products, NextWave solutions can be found in more than 250 million devices around the globe.
August 6 - NextWave Wireless Files Second Quarter Fiscal 2009 Results
NextWave Wireless Inc. (Nasdaq: WAVE) announced that it has filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission for the second quarter of fiscal 2009, ended June 27, 2009.
The Form 10-Q is available on the Web site maintained by the Securities and Exchange Commission at www.sec.gov and on the NextWave Web site at www.nextwave.com under the heading “Investor Relations – Financial Information – SEC Filings.” The financial information accompanying this press release should be reviewed together with the Notes to Condensed Consolidated Financial Statements, Management’s Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors contained in the Form 10-Q.
TORREYPINES THERAPEUTICS INCORPORATED (NASDAQ: TPTX)
"Up 195.26% on Wednesday"
Detailed Quote: http://www.otcpicks.com/quotes/TPTX.php
TorreyPines Therapeutics, Inc. is a biopharmaceutical company which has been committed to providing patients with better alternatives to existing therapies through the research, development and commercialization of small molecule compounds. The company's goal has been to develop versatile product candidates each capable of treating a number of acute and chronic diseases and disorders such as migraine and chronic pain. The company currently has two ionotropic glutamate receptor antagonist clinical stage product candidates.
August 25 - Raptor Pharmaceuticals Raises $5 Million
Raptor Pharmaceuticals Corp. (OTCBB: RPTP) ("Raptor" or the "Company") announced that it has raised an aggregate $5 million of gross proceeds through a private placement of units ("August 2009 Private Placement") and through the exercise of warrants (the "Warrant Exchange") originally issued in connection with its May/June 2008 private placement. The August 2009 Private Placement resulted in gross proceeds to Raptor of approximately $2.4 million or $2.3 million after placement agent fees and other expenses. The Warrant Exchange raised approximately $2.6 million in net proceeds for Raptor.
Raptor intends to use the net proceeds to fund programs for its late-stage drug product candidates and to execute its corporate strategy, including closing the proposed merger with TorreyPines Therapeutics, Inc. (Nasdaq: TPTX) ("TorreyPines"), which is expected to close in the fourth quarter of 2009.
The August 2009 Private Placement consisted of the sale of an aggregate 7,456,250 units, with each unit priced at $0.32. Each unit consists of one share of the Company's common stock and a two-year warrant to purchase one-half of one share of the Company's common stock. The units sold represent an aggregate of 7,456,250 shares of the Company's common stock and warrants ("Warrants") to purchase up to 3,728,125 shares of the Company's common stock. The Warrants are exercisable for up to two years from the date of issuance at $0.60 per share and $0.75 per share during the first and second years following issuance, respectively.
The Warrant Exchange commenced in April 2009, when investors from Raptor's May/June 2008 private placement were offered the right to exchange outstanding warrants (the "Original Warrants") and subscribe for New Warrants (the "New Warrants") to purchase an aggregate of 10 million shares of common stock, or the same number of shares underlying the outstanding Original Warrants. New Warrants were priced at $0.30 per share, reflecting the market price of one share of Raptor common stock on April 29, 2009, compared to the Original Warrants, exercisable at $0.75 and $0.90 per share during the first and second years following issuance, respectively. Original Warrants could be exchanged for New Warrants on the condition that investors exercised the New Warrants on or before July 17, 2009. Except for the exercise price, the terms of the New and Original Warrants are identical. Pursuant to the Warrant Exchange, New Warrants were exercised for an aggregate amount of 8,715,000 shares of the Company's common stock, which resulted in aggregate gross proceeds of $2,614,500 and aggregate net proceeds of $2,587,852.
Neither the common stock nor Warrants offered and sold in the August 2009 Private Placement, the common stock issuable upon exercise of the Warrants sold in the August 2009 Private Placement, nor the New Warrants or the common stock issued upon the exercise of the New Warrants have been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission and with applicable state regulatory authorities or an exemption from the applicable registration requirements.
Details of the Proposed Raptor and TorreyPines Merger
On July 27, 2009, Raptor and TorreyPines entered into a definitive merger agreement. Upon closing, it is anticipated that the merger will result in a Nasdaq-listed biopharmaceutical company with a pipeline of mid- to late-stage clinical development candidates and preclinical drug targeting platforms designed to improve drug delivery of existing therapeutics for orphan indications and underserved patient populations. The merged company will be named Raptor Pharmaceutical Corp., will trade under the symbol "RPTP", be managed by Raptor's management team and board of directors and be headquartered in Novato, California.
Under terms of the agreement, which were unanimously approved by the boards of directors of Raptor and TorreyPines, Raptor will be merged with and into a wholly-owned subsidiary of TorreyPines upon closing. TorreyPines will issue, and Raptor stockholders will receive, shares of TorreyPines common stock such that Raptor stockholders will own 95%, and TorreyPines stockholders will own 5%, of the combined company.
At closing, TorreyPines will also implement a reverse stock split in order to comply with Nasdaq listing requirements; the exact size of the split will be determined at closing. Closing of the merger is subject to customary conditions and contingent upon, among other things, a vote to adopt the definitive merger agreement by a majority of Raptor's stockholders at its annual meetings of stockholders, expected to take place in the fourth quarter of 2009.
Depending on the review process of the regulatory agencies, the companies expect the merger to close in the fourth quarter of 2009. Upon closing the transaction, it is anticipated that the combined company's shares will trade on the Nasdaq Capital Market. TorreyPines is advised by Merriman Curhan Ford and Raptor is advised by Beal Advisors.
Management and Organization
If the merger closes, the combined company will have offices in Novato, California. Executive management will be as follows:
* Christopher M. Starr, Ph.D., Chief Executive Officer
* Ted Daley, President
* Patrice Rioux, M.D., Ph.D., Chief Medical Officer
* Todd C. Zankel, Ph.D., Chief Scientific Officer
* Kim R. Tsuchimoto, C.P.A., Chief Financial Officer
Additional Information About the Merger and Where to Find It
In connection with the merger, TorreyPines has filed a registration statement on Form S-4, which includes a joint proxy statement/prospectus, with the U.S. Securities Exchange Commission ("SEC"). Investors and security holders of Raptor and TorreyPines are urged to read the joint proxy statement/prospectus included in the registration statement filed on Form S-4 (including any amendments or supplements thereto) regarding the merger because it contains important information about Raptor and TorreyPines. Raptor's and TorreyPines' stockholders can obtain a copy of the joint proxy statement/prospectus, as well as other filings containing information about Raptor and TorreyPines, without charge, at the SEC's Internet website (www.sec.gov). Copies of the joint proxy statement/prospectus and Raptor's and TorreyPines' filings with the SEC can also be obtained, without charge, by directing a request to Raptor Pharmaceuticals Corp., 9 Commercial Blvd., Suite 200, Novato, CA 94949, Attention: Kim Tsuchimoto CFO, Fax No. 415-382-1368 or at the email address: email@example.com, with respect to Raptor, and by directing a request to TorreyPines Therapeutics, Inc., P.O. Box 231386, Encinitas, CA 92023-1386, Attention: Investor Relations or at the email address firstname.lastname@example.org, with respect to TorreyPines.
In addition to the registration statement and related joint proxy statement/prospectus, each of Raptor and TorreyPines file annual, quarterly and special reports, proxy statements and other information with the SEC. You may read and copy any reports, statements or other information filed by Raptor and/or TorreyPines at the SEC public reference room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. Raptor's and TorreyPines' filings, respectively, with the SEC are also available to the public from commercial document-retrieval services and at SEC's website at www.sec.gov, and from investor relations at Raptor and TorreyPines, respectively, at the addresses above.
This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Raptor and TorreyPines and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of Raptor and TorreyPines, respectively, in connection with the merger. Information regarding the special interests of these directors and executive officers in the merger are included in the joint proxy statement/prospectus described above. Additional information regarding the directors and executive officers of Raptor and TorreyPines, respectively, is also included, with respect to Raptor, in Raptor's Annual Report, as amended on Form 10-K/A for the year ended August 31, 2008 and Raptor's proxy statement for its 2008 Annual Meeting of Stockholders, which were filed with the SEC on December 23, 2008 and December 31, 2007, respectively, and with respect to TorreyPines, in TorreyPines' Annual Report on Form 10-K for the year ended December 31, 2008 and TorreyPines' proxy statement for its 2008 Annual Meeting of Stockholders, which were filed with the SEC March 27, 2009 and April 24, 2008 respectively. These documents are available free of charge at the SEC's web site at www.sec.gov and from investor relations at Raptor and TorreyPines, respectively, at the addresses above.
ABOUT RAPTOR PHARMACEUTICALS CORP.
Raptor Pharmaceuticals Corp. ("Raptor") is dedicated to speeding the delivery of new treatment options to patients by working to improve existing therapeutics through the application of highly specialized drug targeting platforms and formulation expertise. Raptor focuses on underserved patient populations where it can have the greatest potential impact. Raptor currently has product candidates in clinical development to treat nephropathic cystinosis, non-alcoholic steatohepatitis ("NASH"), Huntington's Disease ("HD"), and aldehyde dehydrogenase ("ALDH2") deficiency.
Raptor's preclinical programs are based upon bioengineered novel drug candidates and drug-targeting platforms derived from the human receptor-associated protein ("RAP") and related proteins that are designed to target cancer, neurodegenerative disorders and infectious diseases.
SOMAXON PHARMACEUTICALS INCORPORATED (NASDAQ: SOMX)
"Up 18.03% on Wednesday"
Detailed Quote: http://www.otcpicks.com/quotes/SOMX.php
Headquartered in San Diego, CA, Somaxon Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on the in-licensing and development of proprietary product candidates for the treatment of diseases and disorders in the fields of psychiatry and neurology. A New Drug Application (NDA) for Silenor® (doxepin), Somaxon’s drug candidate for insomnia, has been filed with the U.S. Food and Drug Administration and currently is under review.
August 6 - Somaxon Pharmaceuticals Reports 2009 Second Quarter Financial Results
Somaxon Pharmaceuticals, Inc. (Nasdaq: SOMX), a specialty pharmaceutical company focused on the in-licensing, development and commercialization of proprietary branded pharmaceutical products and late-stage product candidates for the treatment of diseases and disorders in the central nervous system therapeutic area, announced financial results for the second quarter ended June 30, 2009.
Somaxon has accomplished a number of important objectives since the beginning of the second quarter of 2009. On June 4, 2009, the company resubmitted its New Drug Application (NDA) for Silenor® (doxepin) to the U.S. Food and Drug Administration (FDA). The FDA acknowledged receipt of the resubmission and confirmed that the review cycle will be six months, resulting in a new FDA action date of December 4, 2009.
On July 8, 2009, Somaxon closed a private placement of approximately 5.1 million shares of its common stock at a price of $1.05 per share and seven-year warrants to purchase up to approximately 5.1 million additional shares of its common stock, exercisable in cash or by net exercise at a price of $1.155 per share, for aggregate gross proceeds of approximately $6.0 million.
“The past few months have been very positive and productive for Somaxon as we continue to execute on our strategic plan. The resubmission of our NDA for Silenor and our recent $6 million financing transaction represent significant progress relating to our key corporate objectives,” said Richard W. Pascoe, Somaxon’s president and chief executive officer.
“Going forward, we will continue to work closely with the FDA toward a potential approval for Silenor, responsibly manage our financial resources, and advance our discussions with third parties toward a potential commercial partnership for Silenor,” continued Pascoe. “Our goal is to enter into an agreement that will maximize the potential commercial success of our current lead product.”
Second Quarter Financial Results
For the second quarter of 2009, net loss applicable to common stockholders was $6.1 million, or $0.33 per share, compared with $10.4 million, or $0.57 per share, for the second quarter of 2008.
As a development stage pharmaceutical company, Somaxon had no revenues during the second quarter of 2009.
Research and development expenses for the second quarter of 2009 were $1.5 million, compared with $5.8 million for the second quarter of 2008. The decrease resulted primarily from the company’s conduct during 2008 of its clinical trial to evaluate the potential for electrocardiogram (ECG) effects of doxepin, the active ingredient in Silenor. In addition, salaries and related costs decreased in 2009 as a result of the reduction in force undertaken as part of cost reduction measures. This decrease was partially offset by higher share-based compensation expense as a result of the company’s one-time stock option exchange program that was completed in June 2009 and vesting arrangements under the company’s severance-related agreements.
Marketing, general and administrative expenses were $4.6 million for both the second quarter of 2009 and the second quarter of 2008. Marketing, personnel and general costs decreased approximately $1.0 million due to a reduction in market preparation activities as a result of the delay in the FDA approval process for Silenor, as well as the company’s reduction in force and move to a smaller corporate facility. This decrease was offset by expenses incurred under severance arrangements and higher share-based compensation expense resulting from the company’s one-time stock option exchange program.
For the second quarter of 2009, the company recognized $3.0 million of share-based compensation expense. Share-based compensation expense for the second quarter of 2008 was $1.5 million.
At June 30, 2009, Somaxon had cash, cash equivalents and marketable securities totaling $1.3 million and no debt. This amount does not include $6.0 million in gross proceeds from the company’s July 2009 private placement of its common stock and warrants. The company believes, based on its current operating plan, that its cash, cash equivalents and marketable securities as of June 30, 2009, together with the proceeds from this private placement, will be sufficient to fund its operations through the expected duration of the FDA’s review of its resubmission of the Silenor NDA and through the second quarter of 2010.
At December 31, 2008, the company had cash, cash equivalents and marketable securities totaling $14.3 million and outstanding debt of $15.0 million. The December 31, 2008 cash, cash equivalents and marketable securities did not include $7.5 million of restricted cash that was required to be maintained at Silicon Valley Bank under the company’s secured loan agreement with Silicon Valley Bank and Oxford Finance Corporation. This restricted cash was released upon the full repayment in March 2009 of the remaining principal balance of $13.7 million under the secured loan facility. An additional $0.6 million of restricted cash was released in the second quarter of 2009 in connection with the termination of the company’s facility lease.
DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the "SEC") or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. OTCPicks.com makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person or that an investment such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk. You are receiving this email because you have registered on OTCPicks.com or one of our affiliate companies.
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Disclosure: OTCPicks.com has been compensated seven thousand five hundred dollars by a third party (China Direct) for DRGV advertising and promotional services.