Dipexium Pharmaceuticals Reports Third Quarter 2016 Financial Results

News provided by

Nov 10, 2016, 07:00 ET

NEW YORK, Nov. 10, 2016 /PRNewswire/ -- Dipexium Pharmaceuticals, Inc. (Nasdaq: DPRX), a late-stage pharmaceutical company focused on the development and commercialization of Locilex® (pexiganan cream 0.8%), a novel, broad-spectrum, topical antibiotic peptide, today reported financial results for the quarter ended September 30, 2016.

Financial Results for the Third Quarter of 2016

For the three months ended September 30, 2016, Dipexium reported a net loss of $4.6 million, compared to a net loss of $5.0 million for the three months ended September 30, 2015, a decrease of $0.4 million. The change was primarily due to a $0.5 million decrease in manufacturing relating expenses offset by a $0.1 million increase in Phase 3 clinical trial related expenses.

For the nine months ended September 30, 2016, Dipexium reported a net loss of $15.9 million, compared to a net loss of $13.2 million for the nine months ended September 30, 2015, an increase of $2.7 million. This change was primarily due to a $2.9 million increase in research and development expenses partially offset by a $0.2 million decrease in selling, general, and administrative expenses. The increase in research and development expenses were due to $2.9 million of increased Phase 3 trial enrollment and related clinical trial expenses. The decrease in general and administrative expenses is primarily attributable to a decrease of $0.1 million for stock-based compensation expenses and a $0.1 million decrease in marketing related costs.

Net cash used in operating activities for the nine months ended September 30, 2016 was $13.4 million versus $10.6 million for the nine months ended September 30, 2015. The increase in cash used in operating activities is primarily attributable to increased research and development expenses associated with increased Phase 3 trial enrollment and related clinical trial expenses.

At September 30, 2016, the Company had cash and short-term investments of $18.8 million, compared to $32.2 million at December 31, 2015. The Company's cash balance is currently anticipated to fund operations through 2017.

About Dipexium Pharmaceuticals

Dipexium Pharmaceuticals, Inc. (NASDAQ: DPRX) is a late-stage pharmaceutical company focused on the development and commercialization of Locilex (pexiganan cream 0.8%), a novel, broad-spectrum, topical antibiotic peptide. For more information, please visit www.dipexiumpharmaceuticals.com.

Forward-Looking Statements

This press release may contain, in addition to historical information, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements relating to our anticipated clinical and regulatory development of our product candidate, including development for the European market and development of an intravenous formulation; our cash position; cash flows; business strategies and initiatives; and other matters. We have based these forward-looking statements on the assumptions, expectations and projections about future events that we hold at the time the statements are made. We use words like "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements.

Investors should consider the information contained in our filings with the U.S. Securities and Exchange Commission (the "SEC"), including our Annual Report on Form 10-K, especially in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections, our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Other unknown or unpredictable factors also could have material adverse effects on our future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our beliefs at the time the statements are made. We do not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, nor any other information provided in a conference call, webcast, news release, SEC filing or website.

DIPEXIUM PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30,	December 31,
	2016	2015
ASSETS	(unaudited)

CURRENT ASSETS
Cash	$ 7,838,962	$ 5,234,953
Short-term Investments	10,995,395	26,977,362
Prepaid Expenses	169,685	146,145
TOTAL CURRENT ASSETS	19,004,042	32,358,460


OTHER ASSETS
Security Deposit	56,630	49,385
TOTAL OTHER ASSETS	56,630	49,385

TOTAL ASSETS	$ 19,060,672	$ 32,407,845

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts Payable and Accrued Expenses	$ 890,506	$ 1,606,307
TOTAL LIABILITIES	890,506	1,606,307

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY
Common Stock: $.001 par value, 30,000,000 shares authorized, 10,399,642 and 10,301,114
shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively	10,399	10,301
Additional paid-in capital	75,077,642	71,852,692
Accumulated deficit	(56,917,875)	(41,061,455)
TOTAL SHAREHOLDERS' EQUITY	18,170,166	30,801,538

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 19,060,672	$ 32,407,845

DIPEXIUM PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)



	Three Months Ended September 30,		Nine Months Ended September 30,
	2016	2015	2016	2015
REVENUES	$ -	$ -	$ -	$ -

EXPENSES

OPERATING EXPENSES
Research and Development Expenses	3,113,919	3,457,165	10,398,499	7,456,829
Selling, General and Administrative Expenses	1,530,340	1,571,511	5,499,778	5,794,195

TOTAL OPERATING EXPENSES	4,644,259	5,028,676	15,898,277	13,251,024

LOSS FROM OPERATIONS	(4,644,259)	(5,028,676)	(15,898,277)	(13,251,024)

Interest Income	12,829	9,359	41,857	12,567

NET LOSS	$ (4,631,430)	$ (5,019,317)	$ (15,856,420)	$ (13,238,457)

LOSS PER SHARE
Basic and diluted net loss per common share	$ (0.45)	$ (0.49)	$ (1.53)	$ (1.45)

Weighted average common shares outstanding basic and diluted	10,359,493	10,274,718	10,338,378	9,139,310