Spherix Incorporated (Nasdaq: SPEX), an innovator in biotechnology for diabetes therapy, and a provider of technical and regulatory consulting services to food, supplement, biotechnology and pharmaceutical companies, today reported results for the first quarter ended March 31, 2009.
Recent Company Highlights
o Created a wholly owned subsidiary, Biospherics Incorporated, for the Company's biotech segment.
o Naturlose(R) Phase 3 clinical trial investigating efficacy as a treatment for Type 2 diabetes ongoing:
+ Interim data results expected in third quarter of 2009
+ Completion of the related Phase 2 Dose Range trial expected in early 2010
+ Trial completion expected in mid- to late-2010
o Trade shows/investor conferences:
+ Ohio Valley Affiliates for Life Science, Dayton, OH, April 2-3
+ BIO International Convention, Atlanta, GA, May 18-21
+ Rodman & Renshaw 11th Annual Health Conference, New York, NY, Sept. 9-11
* Spherix Consulting
o Created a wholly owned subsidiary, Spherix Consulting, Inc., for the Company's health sciences segment.
o Strong growth from health sciences consulting services.
o Trade shows Spherix Consulting has and will be attending:
+ Society of Toxicology 48th Annual Meeting, Baltimore, MD, March 15-19
+ Institute of Food Technologists Annual Meeting and Food Expo, Anaheim, CA, June 6-9
+ American College of Toxicology, 30th Annual Meeting, Palm Springs, CA, Nov. 1-4
+ Supply Side West, Las Vegas, NV, Nov. 11-13
"We are pleased with the excellent growth of our health sciences consulting business," commented Dr. Claire L. Kruger, CEO of Spherix. "This is an exciting time at Spherix as we await the interim data in the fall from our ongoing Phase 3 clinical trial investigating the efficacy of Naturlose as a novel treatment for Type 2 diabetes."
Financial Results for the Quarter Ended March 31, 2009
Revenue and direct contract costs grew to $360,670 from $142,908 from the previous year's quarter. The Company's revenue improvement reflects the growth of its health sciences consulting services ("Spherix Consulting").
Research and development expenses were $1.6 million in the quarter, up from $1.0 million in the previous year's quarter. The increase in R&D expenses is related to the expansion of the Phase 3 trial to India. The Company's R&D expenses for both years consisted of costs for both the Phase 3 clinical trial and a related Phase 2 Dose Range trial.
Selling, general and administrative expenses for the quarter were $759,270, down from $1.1 million in the first quarter of 2008. The drop was largely the result of the relocation of the Company's Headquarters to a smaller facility in April 2008, and lower overhead costs.
The Company's losses from continuing operations were $2.0 million for the first quarters ended 2009 and 2008.
The net loss for the quarter ended March 31, 2009 was $2.0 million or $0.14 per share, compared with a net loss of $1.9 million or $0.13 per share for the same period in 2008.
Update on Naturlose(R) Phase 3 Clinical Trial
Patient retention in the India trial has been consistent with that of the U.S. thus far. The Company expects that the Phase 2 Dose Range trial will likely be completed in early 2010 and the Phase 3 trial will likely be completed in mid- to late-2010, based on the current enrollment and retention numbers. The Company expects to obtain interim analysis results from the Phase 3 trial during the third quarter of 2009, which may allow the Company some preliminary insight as to the efficacy of Naturlose as a treatment for Type 2 diabetes.
Spherix Incorporated was launched in 1967 as a scientific research company, under the name Biospherics Research. The company now leverages its scientific and technical expertise and experience through its two subsidiaries -- Biospherics Incorporated and Spherix Consulting, Inc. Biospherics is currently running a Phase 3 clinical trial to study the use of Naturlose as a treatment for Type 2 diabetes. Its Spherix Consulting subsidiary provides scientific and strategic support for suppliers, manufacturers, distributors and retailers of conventional foods, biotechnology-derived foods, medical foods, infant formulas, food ingredients, dietary supplements, food contact substances, pharmaceuticals, medical devices, consumer products, and industrial chemicals and pesticides. For more information, please visit www.spherix.com.