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
Bank of Nova Scotia or otherwise known as Scotiabank, Friday reported lower net profit for the third quarter, in the absence of a year-ago gain. Earnings per share, however, came in line with the Street view. Further, the company said it raised its quarterly dividend by 2 cents. Non-traditional discount and variety stores operator Big Lots Inc. (BIG) Friday reported a decline in net profit for the second quarter, while net sales grew 1.2 percent from the prior year. Comparable sales for the quarter increased 2.8 percent. Google has rejected the European Union's charges that it abused its market power and the demanded that it change the way it ranks online comparison shopping services in its search results, setting up a potentially long legal battle with the EU regulator empowered to levy billions of euros in fines
comments powered by Disqus
RELATED NEWS
Trade AVEO now with 
Follow RTT