logo
Share SHARE
FONT-SIZE Plus   Neg

AVEO Pharma Q3 Loss Widens; To Cut Jobs - Quick Facts

AVEO Pharmaceuticals Inc. (AVEO) reported that its third-quarter net loss widened to $30.1 million, or $0.69 per share, from $23.8 million, or $0.55 per share, for the third quarter of 2011.

Total collaboration revenue for the third quarter of 2012 was approximately $1.0 million compared with $3.6 million for the third quarter of 2011. The decrease was due to revenue recognized in the third quarter of 2011 under AVEO's collaboration agreement with OSI that did not recur during the third quarter of 2012.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.87 per share on revenues of $6.57 million for the quarter. Analysts' estimates typically exclude special items.

The company updated its financial guidance that it expects to end 2012 with approximately $135 million in cash, cash equivalents and marketable securities. Based on its revised operating plan, AVEO anticipates that this capital is sufficient to fund its operations through 2013.

In addition, the company plans to explore further development of ficlatuzumab and certain discovery assets through external collaborations, including with academic partnerships and cooperative groups. The company plans to focus its Human Response Platform and discovery capabilities on supporting the clinical development of tivozanib, advancing biomarker identification and development across AVEO's clinical stage programs, and developing novel, high potential programs.

The company strategic restructuring and projected cost savings are being achieved through a combination of reduced spending on early stage research programs and a reduction in force of approximately 45 positions, or 17% of AVEO's workforce, as well as elimination of 30 open positions.

This refocusing of resources and reduction of expenses is expected to provide AVEO approximately $100 million in cost savings over the next three years compared with prior projections, with approximately $37 million in 2013, and is expected to extend its cash runway through 2013.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Anglo-Dutch oil giant Royal Dutch Shell plans to cut 2,200 more jobs, as the company continues to face lower oil prices, media reported Wednesday citing an emailed statement. The latest round of cuts would bring the total job cuts this year to at least 5,000 globally. In the U.K. and Ireland, the company plans to reduce staff working in exploration and production by 475. Tiffany & Co. (TIF) reported first-quarter net earnings of $87 million, or $0.69 per share compared to $105 million, or $0.81 per share, in the prior year. The company noted that its first-quarter results included a tax benefit of $0.05 per share related to the settlement of a tax examination. On average,... Shares of Marks & Spencer Group plc were losing around 8 percent in the early morning trading in London, after the retailer reported lower profit in its fiscal 2016, hurt mainly by weak results at clothing & Home segment and lower UK LFL sales. Looking ahead, the company warned about profit, and said it sees a similar sales trend in fiscal 2017.
comments powered by Disqus
Follow RTT