Vasogen reports R&D expenses down 57% in Q3, expects burn rate to drop significantly

By Jennifer Lanning Drey

Portland, Ore., Oct. 12 - Vasogen Inc. reported that its research and development expenses during the third quarter decreased to C$7.4 million, a 57% drop from C$17.2 million during the comparable period of 2005.

The key driver behind the decrease was a significant reduction in expenses associated with phase 3 clinical trials, said Paul J. Van Damme, Vasogen's chief financial officer, Thursday during the company's third-quarter earnings conference call.

"Looking out into the last quarter of 2006, clinical expenses will continue to decline significantly," Van Damme said.

Vasogen also expects its cash burn rate to drop to about C$2 million per month after the company pays off remaining costs related to completed studies, which is expected to occur in the fourth quarter, he said.

Vasogen reported cash, cash equivalents, restricted cash and marketable securities of C$25.6 million at Aug. 31. Of that amount, C$11 million is restricted under the terms of the company's convertible notes, which have an outstanding balance of $10 million.

However, Vasogen plans to use equity payments to pay the balance of the notes and therefore will not use much, if any, of its cash to settle the remaining $10 million, Van Damme said.

"We will continue to ensure that the company is well-capitalized and able to meet its plans on an ongoing basis," Van Damme said.

With the phase 3 Acclaim trial of Celacade for chronic heart failure having been completed last month, Vasogen is preparing to present the full data set from the trial to the Food and Drug Administration's medical device bureau, according to David Elsley, chief executive officer of Vasogen.

Elsley said he could not yet provide the specific timeframe for the meeting but said it will be a key priority for the company in the coming months.

Before the end of the year, Vasogen also plans to begin a phase 2 clinical trial of VP025, which is being developed to target various neurological and neurovascular disorders.

Mississauga, Ont.-based Vasogen is focused on the development of technologies targeting chronic inflammation underlying cardiovascular and neurological disease.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.