San Fernando Valley Business Journal

Kythera Beats Estimates on Widening Losses

By Kelly Goff Tuesday, May 14, 2013

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.