STRONG FINANCIAL POSITION
WELL POSITIONED FOR 2018 AND BEYOND
We finished fiscal year 2017 with more cash on hand than when we started, due in large part to the $20 million in near-term payments we received in connection with our license, development and commercialization agreement with Helsinn, plus another $5 million in a related equity transaction, combined with a tightly managed spend.
“We enter the new fiscal year not only with momentum, but with a solid balance sheet. We believe our cash on hand will be sufficient to fund operations into calendar year 2019, while providing us with some financial flexibility to grow the company.”
As of June 30, 2017, we had cash, cash equivalents and short-term investments of $53.6 million. We have no outstanding debt.
In April 2017, we appointed Brian Drazba as our new Chief Financial Officer. Brian is an accomplished financial executive with more than 25 years of financial management experience in the healthcare industry, most recently as Chief Financial Officer of Heron Therapeutics, a commercial-stage biotechnology company. Brian succeeds Thomas Zech, who retired after a distinguished career spanning four decades.
Our cash expenditures decreased from $17.9 million in fiscal year 2016 to $16.5 million in 2017. Similarly, our cash expenditures decreased from $3.5 million in the fourth quarter ended June 30, 2016, to $3.1 million last quarter.
R&D expenses decreased from $13.4 million in fiscal year 2016 to $7.2 million in 2017, primarily due to a reduction in expenses related to pracinostat pursuant to our license agreement with Helsinn. We had a slight increase in G&A expenses from $7.6 million in fiscal year 2016 to $8.6 million in 2017, primarily due to professional service costs.
Fiscal year 2017 also marked a first for our company in that we reported revenues, due again to our license agreement with Helsinn, which totaled $23.2 million. Cost of research and development revenue, consisting primarily of reimbursable third-party pass-through costs, was $5.0 million.
Our net income was $2.7 million, or $0.07 per share, for the fiscal year ended June 30, 2017, compared to a net loss of $20.9 million, or $0.61 per share for 2016.