Mast Therapeutics Inc. (NYSEMKT: MSTX) reported financial results for the fourth quarter and year ended December 31, 2016.
“We are pleased with the progress made with AIR001 during the year and anticipate the closing of the merger with Savara to take place in the second quarter of this year,” stated Brian M. Culley, Chief Executive Officer.“We believe this merger offers our stockholders a diversified, late-stage product development pipeline with important forthcoming milestones.”
Fourth Quarter 2016 Operating Results
The Company’s net loss for the fourth quarter of 2016 was $6.0 million, or $0.02 per share (basic and diluted), compared to a net loss of $10.2 million, or $0.06 per share (basic and diluted), for the same period in 2015.
The Company recognized $83,000 of revenue for the fourth quarter of 2016, representing reimbursement of costs related to the nonclinical study of vepoloxamer that is being funded by a Small Business Innovation Research (SBIR) grant.The Company recognized no revenue for the same period in 2015.
Research and development (R&D) expenses for the fourth quarter of 2016 were $78,000, a decrease of approximately $7.1 million, or 99%, compared to $7.2 million for the same period in 2015.This reduction in R&D expense was due principally to the Company’s decision to discontinue clinical development of vepoloxamer in September 2016.External clinical study fees and expenses decreased by $3.9 million, external nonclinical study fees and expenses decreased by $2.9 million and R&D personnel costs decreased by $0.3 million for the fourth quarter of 2016 compared to the same period in 2015.
Selling, general and administrative (SG&A) expenses for the fourth quarter of 2016 were $1.9 million, a decrease of $0.6 million, or 23%, compared to $2.5 million for the same period in 2015.The decrease was primarily due to reduced fees for consulting and legal services and personnel costs compared to the 2015 period.
