Novan Inc. reported a net loss on Monday that exceeded Wall Street expectations in its first quarterly earnings as a public company.
The company reported a net loss of $5.76 per share for the third quarter. This is down from a net loss of $2.66 per share in the same quarter last year and worse than the loss of $1.40 per share that analysts were expecting.
The filing with the Securities and Exchange Commission can be found here.
Novan is a pharmaceutical company focused on dermatology using nitric oxide.
The company reported a net loss of $46.6 million in the first nine months of the year. It reported a net loss of $28.1 million in 2015. It has had no revenue.
“We are pleased to announce the results of a productive quarter,” said President and CEO Nathan Stasko in a statement. “The completion of our IPO provided us additional capital to advance our unique platform of nitric oxide-releasing product candidates, progressing toward important development milestones in the coming months for three of our development programs.”
Total operating expenses for the third quarter were $17.5 million including research and development, general and administrative and operating expenses. This is up from $5.6 million in total operating costs for the same period last year. The increase in expenses was attributed to research and development for phase three clinical trials of its product SB204.
This September NCBNW reported Novan’s filing for a $60 million initial public offering. In the first day of trading, it saw a 64 percent stock rise. Net proceeds to Novan from the sale of the shares totaled about $44.6 million.
At the end of the third quarter, Novan’s cash was about $55.7 million.
The company is developing a product for acne treatment that is in phase three pivotal clinical trials and expects to announce results in first quarter 2017.
It is also developing a treatment for viral skin infections, such as warts from HPV, that is in phase two of proof-of-concept trial and will announce results in the quarter.
Finally, the company is working on developing a product for the treatment of infections of the skin and nails that is in phase 2 trials with announcement of results expected in the first half of 2017.
The stock opened Monday at $22.37, up from Friday’s close of $21.98.
