Arca narrows loss, continues to evaluate merger

WESTMINSTER — Third-quarter financial conditions at Westminster-based Arca Biopharma Inc. (Nasdaq: ABIO) looked slightly better than the second quarter.

The pre-revenue company, which is developing genetically targeted therapies for cardiovascular disease, reported a net loss of $1.4 million, or 10 cents per share, down slightly from a $1.5 million loss the previous quarter. Arca reported a net loss of $2.3 million in the third quarter of 2022, or 16 cents per share.

Arca in May 2022 retained Ladenburg Thalmann & Co. Inc. to “evaluate strategic options, including transactions involving a merger, sale of all or part of the Company’s assets, or other alternatives with the goal of maximizing stockholder value,” the company stated in a press release. “The Company and Ladenburg have reviewed several potential strategic transactions and continue to evaluate further potential development of the Company’s existing assets, in order to maximize stockholder value.”

Arca said it does not have a timeline for the strategic-review process, but noted that it has cash and cash equivalents of $38.5 million, enough to fund operations through the end of 2024.

The company has implemented cost-cutting measures. Research and development expenses during the third quarter totaled $300,000, down from $1 million for the same period the prior year. That savings was derived from staff reductions, with the company cutting its workforce by 67%, or 12 employees.

“Personnel reductions were primarily focused in research and development and general and administrative functions,” the company said. “The restructuring was a result of our decision to manage our operating costs and expenses.”

Total operating expenses for the third quarter ended Sept. 30 totaled $2 million, compared with $2.6 million for the third quarter 2022.

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