Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH) posted a loss in the third quarter and lower revenue, but the focus for investors is on the October launch of its treatment for abdominal infections after getting approval from the Foof and Drug Administration.
"Xerava is now available for use in hospitals and health care institutions for the treatment of a range of patients with empiric and confirmed cIAI infections,” said CEO Guy Macdonald.
The company entered into a loan agreement of $75 million, "the first $30 million tranche of which extends our cash runway into the second quarter of 2020 and provides us with additional flexibility to support a strong launch of XERAVA in the US," Macdonald explained.
Xerava will be launched in Europe in the first half of 2019. Two other drugs for different ailments will be going through Phase 1 studies in 2019.
The company booked a third-quarter loss of $0.37, better than a year-ago loss of $0.63, but below the consensus of $0.36 per share loss. Revenue fell to $1.2 million from $4.07 million a year ago, short of consensus of $1.87 million.
Revenue during the third quarter consisted of contract and grant revenue under the company's US government awards for the development of Tetraphase compounds. The decrease was primarily due to the timing of activities under these awards.
Research and development expenses for the third quarter of 2018 were $11.7 million compared with $28.8 million for the same period in 2017. The decrease in R&D expenses was primarily due to the completion of Phase 3 clinical studies for Xerava.
Shares of Tetraphase barely moved in after-hours trade, rising 1.8% to $2.28, after closing on Thursday flat at $2.25.
Tetraphase Pharmaceuticals is a clinical-stage biopharmaceutical company which develops various antibiotics for the treatment of serious and life-threatening multidrug-resistant infections.
The company is based in Watertown, Massachusetts.
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Reporting by Rene Pastor, contactable on [email protected]