Nivalis posts $31.5M loss for 2016; staff reduction continues

 

BOULDER — Nivalis Therapeutics Inc., a biopharmaceutical company based in Boulder that is developing treatments for cystic fibrosis, on Monday reported a loss of $31.5 million for its fiscal year that ended Dec. 31, and is continuing its staff reduction as it winds down research-and-development activities.

The job cuts are affecting 25 employees, including Jon Congleton, the company’s former president and chief executive, and Dr. David Rodman, the company’s former chief medical officer, who were terminated Jan. 15. When the job cuts are completed, five employees will remain.

“Nivalis is continuing its evaluation of strategic alternatives,” Mike Carruthers, interim president and chief financial officer of Nivalis, said in a prepared statement. “We are also on track to conclude our second Phase 2 study in CF, and to complete staff reductions … in the first quarter of 2017.”

The $31.5 million loss was more than the company’s net loss of $22.8 million for the prior fiscal year.

For the fourth quarter that ended Dec. 31, Nivalis (Nasdaq: NVLS) reported a loss of $7.7 million, or 50 cents per share, compared with a loss of $6.6 million, or 42 cents per share, during the fourth quarter of 2015.

The increased loss in the quarter and the year compared with the prior year, was the result of increased clinical trial costs related to two Phase 2 studies and one Phase 1 study conducted during 2016, compared with only a single Phase 1b study and initial costs for one of the Phase 2 studies that began late in 2015.  General and administrative costs increased in 2016 and were largely related to operating as a publicly traded company for the entire year of 2016, the company said.

In early January, Nivalis’ board of directors approved a restructuring plan to reduce operational costs and preserve cash as the company explores strategic alternatives to maximizing stockholder value from its clinical assets and cash resources.

As of Dec. 31, Nivalis had $61 million in cash and marketable securities. It has no outstanding debt and there were 15.6 million shares of common stock issued and outstanding as of Dec. 31.

Nivalis’ stock closed Monday at $2.37 per share. Its 52-week price range was $2 to $9.35.

 

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