Repros' Q1 Loss In Line with Expectations - Analyst Blog

Repros Therapeutics Inc.'s RPRX first quarter 2014 loss of 37 cents per share was narrower than the year-ago loss of 41 cents per share and in line with the Zacks Consensus Estimate. The narrower loss was due to higher number of shares outstanding.

The company's revenues for the first quarter of 2014 were $2,000 as compared to $1,000 in the year-ago period, reflecting higher interest income as a result of higher cash balances.

Quarter in Details

Both general and administrative (G&A) expenses and research and development (R&D) expenses were up during the reported quarter. While G&A expenses increased 14.9% to $1.2 million, R&D expenses were up 16.1% year over year to $7.3 million.

Androxal, the most advanced pipeline candidate at Repros, is being evaluated for the treatment of secondary hypogonadism. Repros is conducting two identical, 17-week, double-blind studies. These studies (ZA-305 and ZA-304) will compare the safety and efficacy of Androxal with a testosterone replacement therapy (topical gel) and placebo. Both ZA-305 and ZA-304 will enroll 120 patients.

Top-line data from these studies are expected by Oct 2014. Repros plans to submit a new drug application (NDA) to the U.S. Food and Drug Administration (FDA) in the fourth quarter of 2014. We expect investor focus to remain on Androxal updates.

Proellex is another candidate in Repros' pipeline. Proellex is being developed for uterine fibroids and severe endometriosis (a phase II study is ongoing). The company is planning to submit the protocol for a phase II study on Proellex for the treatment of symptomatic fibroids.

Repros currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks include Gilead Sciences Inc. GILD, Affymetrix Inc. AFFX and Alexion Pharmaceuticals, Inc. ALXN.  While Gilead carries a Zacks Rank #1 (Strong Buy), Alexion and Affymetrix hold a Zacks Rank #2.