Furiex Pharmaceuticals, which saw its stock drop 23 pertcent in a single day last week after a drug it is developing with a partner failed to win U.S. regulatory approval, reported a narrower net loss in the first quarter.
The Morrisville company reported Thursday a loss of $9.8 million, or 98 cents per share, compared to $14.4 million, or $1.45 per share, in the first quarter of 2011.
Revenue from royalties totaled $2.6 million, compared to $400,000 in the first quarter of 2011.
The company's research and development expenditures declined from $12.9 million to $9.4 million. Furiex attributed the decline to completion of Phase 2 trials for its drug candidates, JNJ-Q2 and MuDelta.
MuDelta is being developed to treat irritable bowel syndrome. JNJ-Q2 has been studied as both a treatment for acute skin infections and for bacterial pneumonia.
Last week, Furiex's corporate partner, Takeda Pharmaceutical, reported that the diabetes medication alogliptin failed to win U.S. regulatory approval.
Furiex already receives royalty payments from Takeda for the sale of alogliptin products in Japan and would receive royalties from U.S. sales as well.
Takeda plans to supply additional data requested by the FDA and is requesting a meeting with regulators to determine additional steps it needs to take to address outstanding issues.
Furiex became a publicly traded company in June 2010 when it was spun off from Wilmington contract research organization PPD. Before the spin-off, PPD transferred $100 million in cash to Furiex.
Furiex had $31.6 million in cash as of the end of March. The company's chairman is Fred Eshelman, the founder of PPD.
In its earnings release, Furiex CEO June Almenoff said the company continues to make progress on MuDelta.
"Given the unmet medical need and the strong commercial potential in IBS-D, this asset remains a high priory for us," she said.
Furiex shares, which opened at $13.95 Friday, are down 22 percent this year.