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SNGX: Balance Sheet Boosted by Recent Financings

11/06/2017
By Grant Zeng, CFA

NASDAQ:SNGX

Update on Third Quarter Financials 

On November 6, Soligenix (NASDAQ:SNGX) reported its financial results for the third quarter ended September 30, 2017. 

Total revenue for the third quarter was $1.82 million, compared to $2.96 million for the prior year. 

Revenue from government contracts was $1.4 million for the third quarter of 2017, compared to $3.0 million for the same period of 2016. The decrease in contract revenue was due to the completion of the NIAID contract during the first quarter of 2017, along with the BARDA contract base period for OrbeShield®.  

Grant revenue for the third quarter of 2017 was $0.43 million, compared to no grant revenue in the third quarter of 2016. 

R&D expenses for the third quarter of 2017 were $0.61 million, compared to $1.18 million for the third quarter of 2016. According to the news release, the decrease was primarily due to the two grants awarded in which certain research and development expenses were reimbursable under the terms of the grants, reducing the total expenses in the third quarter of 2017.

G&A expenses for the third quarter of 2017 were $0.71 million, compared to $0.65 million for the third quarter of 2016. This increase was primarily related to an increase in professional consulting fees.

Net loss for 3Q17 was $0.96 million ($0.17) per share, compared to $1.67 million ($0.49) per share for the same quarter of the prior year. 

Balance Sheet Boosted by Recent Financings

As of September 30, 2017, the Company's cash position was $5.0 million.

On November 3, 2017, the company announced that it had closed a registered direct offering of 1,575,500 shares of common stock at a premium price of $2.00 per share and 982,000 shares of common stock at an above the market purchase price of $2.00 per share in a concurrent private placement. Gross proceeds to the Company were approximately $5,115,000. 

Lead investors in the financing included Knoll Capital Management, LP and ACT Capital Management, LLLP.

In September 2017, NIH awarded the company approximately $700,000 over five years for the development of a thermostabilized Ebola vaccine. 

In September 2017, the National Institute of Dental and Craniofacial Research (NIDCR), part of the NIH, awarded the company a Small Business Innovation Research (SBIR) grant of approximately $1.5 million over two years to support the conduct of its Phase III, multinational, randomized, double-blind, placebo-controlled study evaluating SGX942 (dusquetide) as a treatment for severe oral mucositis in patients with head and neck cancer receiving chemoradiation therapy (CRT).
In September 2017, the National Cancer Institute (NCI), part of the NIH, awarded Soligenix a SBIR grant of approximately $1.5 million over two years to support the conduct of its pivotal, Phase III, randomized, double-blind, placebo-controlled study evaluating SGX301 (synthetic hypericin) as a treatment for CTCL.

In August 2017, the National Institute of Allergy and Infectious Diseases (NIAID), part of the NIH, exercised a $2.5 million option to fund GMP (good manufacturing practice) compliant RiVax® bulk drug substance and finished drug product manufacturing. 
All these financings not only boost the company’s balance sheet immediately, but further validate the company’s technology and clinical programs.  

Current cash position can support the company’s operation for at least one year according to our financial model. 

READ THE FULL RESEARCH REPORT HERE

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