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.
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