ESSA Pharma Inc. (EPIX) reported a narrower loss in the second quarter of 2019 helped by lower research and development expenses as well as a decline in general and administration expenditures. The company remained on track to enter clinical studies with the metastatic castration-resistant prostate cancer-treating candidate in the first quarter of 2020.
Net loss was $3.4 million or $0.54 per share, narrower than the previous year quarter’s loss of $4.4 million or $0.83 per share. The company experienced an increase in weighted average common shares outstanding.
R&D expenses plunged by 25% year-over-year, primarily related to the company’s continued focus on preclinical research related to its next-generation aniten compounds in the current period.
Costs in the comparative period included termination costs in relation to ESSA’s conclusion of its phase 1 clinical study of prostate cancer-treating nonsteroidal antiandrogen, EPI-506, in September 2017.
General and administration expenditures fell by 18.2% year-over-year, primarily reflected decreased corporate activity, resulting in decreased professional and regulatory fees.
The company said it is extremely excited about the potential of EPI-7386 after selecting it as a lead clinical candidate for the treatment of metastatic castration-resistant prostate cancer during the first quarter. The company remained on track to enter clinical studies with EPI-7386 in the first quarter of 2020.
Preclinical data showed EPI-7386 is significantly more potent, metabolically stable and more effective than the prior clinical candidate, EPI-506. Also, EPI-7386 has demonstrated a favorable tolerability profile in all animal studies of the compound conducted to date.
Shares of ESSA Pharma ended Thursday’s regular session up 2.54% at $2.63 on the Nasdaq. The stock has fallen over 32% in the past year and over 31% in the past three months.