ARCA biopharma Announces Second Quarter 2022 Financial Results
WESTMINSTER, Colo., Aug. 02, 2022 (GLOBE NEWSWIRE) -- ARCA biopharma, Inc. (Nasdaq: ABIO), a biopharmaceutical company applying a precision medicine approach to developing genetically targeted therapies for cardiovascular diseases, today reported second quarter 2022 financial results and provided a corporate update.
Dr. Michael Bristow, ARCA’s President and Chief Executive Officer, commented, “We are in the process of evaluating options for creating stockholder value, including potential development of our assets, partnering and other strategic options.”
In May 2022, the Company retained Ladenburg Thalmann & Co. Inc. to act as its financial advisor to explore and evaluate strategic options for maximizing stockholder value. Potential strategic alternatives that may be explored or evaluated as part of this process include the potential for an acquisition, merger, business combination or other strategic transaction involving the Company. The Board has not set a timetable for the conclusion of this review, nor has it made any decisions related to any further actions or potential strategic options at this time. There can be no assurance, however, that this process will result in any such transaction.
Second Quarter 2022 Summary Financial Results
Cash and cash equivalents were $46.4 million as of June 30, 2022, compared to $53.4 million as of December 31, 2021. ARCA believes that its current cash and cash equivalents, will be sufficient to fund its operations at the current levels through at least the end of 2023. The Company’s review of its strategic options may impact this projection.
Research and development (R&D) expenses were $1.5 million for the quarter ended June 30, 2022, compared to $3.6 million for the corresponding period in 2021. The $2.1 million decrease in R&D expenses in the second quarter was primarily related to the completion of enrollment in the rNAPc2 Phase 2b clinical trial in the fourth quarter of 2021. R&D expenses in 2022 are expected to be lower than 2021.
General and administrative (G&A) expenses were $1.7 million for the quarter ended June 30, 2022, compared to $1.3 million for the corresponding period in 2021. The $0.5 million increase in G&A expenses was primarily a result of increases in professional fees and consulting costs. G&A expenses in 2022 are expected to be consistent with those in 2021 as the Company maintains administrative activities to support its ongoing operations.
Total operating expenses for the quarter ended June 30, 2022 were $3.2 million compared to $4.8 million for the second quarter of 2021.
Net loss for the quarter ended June 30, 2022 was $3.1 million, or $0.22 per basic and diluted share, compared to $4.8 million, or $0.34 per basic and diluted share in the second quarter of 2021.
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