Eloxx Pharmaceuticals, Inc. (NASDAQ: ELOX) stock gained by 2.92% at last close while the ELOX stock price rises by 2.84% in the pre-market trading. Eloxx Pharmaceuticals is working on developing novel Ribosome Modulating Agents (RMAs) using its groundbreaking TURBO-ZMTM chemistry technology platform and its library of Eukaryotic Ribsome Selective Glycosides (ERSGs).
What is happening?
ELOX on May 18, 2021, announced the successful completion of an underwritten public offering of 38,333,334 shares of common stock at a price of $1.35 per share. The underwriters’ option to buy an additional 5,000,000 shares of common stock at the public offering price, less underwriting discounts and commissions, was fully exercised at the closing. After subtracting underwriting discounts and fees, as well as sale costs, the total proceeds from the offering is roughly $51.75 million.
The offering is being managed by B. Riley Securities, Inc. as the sole bookrunner.
On May 7, 2021, Eloxx Pharmaceuticals announced its first-quarter 2021 financial results. Given below is the summary.
- ELOX had a net loss of $8.7 million, or $0.22 per share, for the three months ending March 31, 2021, which included $1.3 million in stock-based compensation. ELOX had a net loss of $13.9 million, or $0.35 per share, in the same timeframe last year
- For the three months ending March 31, 2021, ELOX research and development costs totaled $4.1 million, including $0.2 million in stock-based compensation. R&D costs were $4.8 million in the same timeframe the previous year. Reduced expenditures relating to the creation of ELX-02 as a result of the COVID-19 and realignment measures taken in February 2020, which included increases in R&D headcount and external investment, drove the decline in R&D expenses.
- For the three months ending March 31, 2021, ELOX’s general and administrative costs were $4.3 million, including $1.1 million in stock-based compensation. G&A costs were $5.0 million in the same timeframe last year. Realignment measures initiated in February 2020, which included changes in general and executive headcount as well as external expenditures, were largely responsible for the decline.
- ELOX had $18.2 million in cash and cash equivalents as of March 31, 2021, which they believe to be enough to finance the activities into the third quarter of 2021.