Boston, MA, 03/12/2014 – Oncogenex Pharmaceuticals Inc (NASDAQ:OGXI) is concerned with the development of new cancer products. Treatment for cancer has global market opportunity and the company has been hoping that its product pipeline will soon come of age to propel its revenue and earnings.
However, investors are not pretty sure whether to hit the panic button and bolt out or stay on in an environment where financial performance can be very worrying.
In the last trading, shares of Oncogenex Pharmaceuticals Inc (NASDAQ:OGXI) were last seen losing 5.27 percent to change hands at $13.12 per share. Earlier, the shares were changing hands between $13.07 and $14.25. The heavily volume trading day saw the shares touching 52-week high at $14.25.
Results that caused panic
Oncogenex Pharmaceuticals Inc (NASDAQ:OGXI) issued its fourth quarter and full-year 2013 Tuesday. Revenue in the fourth quarter was $8.6 million, which compared with $9.8 million in the corresponding quarter of 2012. The company generated revenue of $29.9 million in full-year 2013, against $20.1 million in 2012. The 2013 revenue consisted of reimbursable manufacturing and clinical trial costs incurred under the deal with Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA).
Coming to earning, Oncogenex Pharmaceuticals Inc (NASDAQ:OGXI) was at loss, registering net loss of $6.7 million or 45 cents per share diluted in the fourth quarter. That was a wider loss than the $4.1 million or 28 cents per share diluted suffered in the corresponding quarter of 2012. For the full-year 2013, the company’s net loss came in at $31.8 million or $2.17 per share of diluted. That compared with net loss of $21.1 million or $1.56 per share diluted in 2012.
As you would expect, such are not the kind of results that keep investors glued in a ticker. Therefore, investors were seen heading for exit door soon as the bad news hit home.
Reduced cash position
Oncogenex Pharmaceuticals Inc (NASDAQ:OGXI) was not just full of choking losses, but its cash position also suffered significantly compared with last year. As of December 31, 2013, Oncogenex Pharmaceuticals Inc (NASDAQ:OGXI) had cash and cash equivalents of $39.2 million, that was almost half the $75.4 million that it had as of December 31, 2012.