Wednesday, Chelsea Therapeutics International Ltd. (CHTP) reported a narrower loss for the second quarter, helped mainly by a gain due to recovery of previously recorded impairments.
Second quarter net loss of Chelsea narrowed to $5.3 million or $0.18 per share from $7.3 million or $0.24 per share in the same period last year.
The second quarter results include a $4.05 million gain from recovery of previously recorded impairments against the company's holdings in auction rate securities. Excluding items, net loss was $9.3 million or $0.31 per share.
On average, five analysts polled by Thomson Reuters were expecting a loss of $0.27 per share for the quarter. Analysts' estimates typically exclude special items.
The company did not report any revenues for both periods.
Total operating expenses increased to $9.41 million from $7.77 million for the same quarter last year. Research and development expenses increased to $8.09 million from $6.37 million.
Chelsea's second quarter interest income declined to $0.11 million from $0.46 million for the same quarter last year.
For the six months ended June 30, net loss narrowed to $12.71 million or $0.42 per share from $15.99 million or $0.53 per share in the same period last year.
Chelsea also said its expects to end the year with cash and cash equivalents of $16 million to $18 million.
With the present cash and cash equivalents and $12.4 million net proceeds from registered direct offering which Chelsea completed in July, the company said it would be able to fund its ongoing development programs and Commercialization activities into third quarter of 2010.
CHTP, is currently trading at $4.98, down 0.60% on Nasdaq.
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