Kythera Pharmaceuticals Inc. beat Wall Street estimates in the first quarter, even as it widened losses due to costs of late-stage clinical trials of its primary pipeline product, an injectable fat-loss drug.
The Calabasas biotech, which went public in October, reported a net loss of $14 million (-77 cents a share) in the quarter ended March 31, compared with a net loss of $6.9 million (-53 cents) in the same period a year earlier. The company has no drugs on the market and reported no revenue.
Three analysts polled by Thomson Reuters had expected a loss of 97 cents a share.
Research and development costs climbed to $10 million from $6.5 million. Losses from operations widened to $13.8 million from $6.9 million.
The company reported that it had cash and cash equivalents of $87.6 million at the end of the quarter, which it expects will be enough to fund the firm for the next 12 months.
The company raised $81 million in its initial public offering largely to fund research and development of ATX-101, a treatment to reduce double chins. Kythera expects to report initial results of its Phase 3 trials in the next few months.
“Over the coming year we will continue to advance our development program for this first-in-class injectable drug,” said Chief Executive Keith Leonard in a statement.
Kythera lost 58 cents, or 2.6 percent, to close at $22.01 on the Nasdaq.