Marinus Pharmaceuticals Inc. (NASDAQ:MRNS) shares took a hit after it reported a full-year loss for 2017 that was larger than analysts expected.
The biotech company, which is developing therapeutics to treat epilepsy and neuropsychiatric disorders, posted a loss for 2017 of US$18.9mln, or 80 US cents a share. Though the loss was smaller than the loss of US$28.6mln, or US$1.47 a share, that Marinus reported in all of 2016, it was greater than the loss of 71 US cents a share that was the average of estimates by two analysts who follow Marinus, according to Yahoo Finance.
The company did not report revenue as it is still in the clinical trial phase.
Marinus said it had cash, cash equivalents and investments of US$58.4mln as of Dec. 31, 2017, which is nearly double the US$30.1mln it reported as of Dec. 31, 2016. The company said it believes its cash position "will enable us to fund our current scale of operating expenses and capital expenditure requirements into 2020."
In mid-morning trading, Marinus shares were down 13% to US$4.57.
Big drop in R&D spending
Marinus said its research and development expenses fell 44% to US$12.4mln in 2017 from US$22mln in 2016. The company said the decrease was primarily due to a decrease of US$11mln associated with its drug-resistant focal onset seizures programme, which it discontinued in June 2016. In addition, Marinus said it sold US$400,000 in state research and development tax credits that it used to offset research and development expenses. The decrease was partially offset by an increase of US$2.3mln associated with its IV programmes in postpartum depression (PPD), for which a Phase 2 clinical trial was initiated in June 2017.
Cash used in operating activities was US$18.8mln in 2017, down 24% compared to US$24.8mln in 2016.
Christopher M. Cashman, CEO of Marinus, said the company's work in 2017 "has positioned us for important data readouts and advancing ganaxolone into late-stage development in 2018." Ganaxolone is the company's treatment for epilepsy and neuropsychiatric disorders.
“The data obtained last September from our study in children with CDKL5 deficiency disorder were impressive and drove our decision to advance this program into a global, pivotal study which we will initiate this year," Cashman said. "We, along with the CDKL5 community of caregivers, physicians and investigators, are excited to participate in this first-ever late-stage clinical trial for these children suffering from this rare and debilitating epilepsy with no approved treatments or even any reasonable standard of care. Similarly, our two phase 2 studies in women suffering from severe and moderate PPD are expected to generate data with IV and oral regimens of ganaxolone this year to support the design and initiation of pivotal Phase 3 studies next year."
Cashman said the company remains "focused on our goal of being able to treat underserved patient populations with patient-convenient, setting appropriate, effective and safe treatment regimens."