GTx Inc. saw net income of $44.3 million in its first quarter as it recognized collaboration funds from Merck and Co. Inc.
The Memphis-based pharmaceutical company recognized roughly $54.9 million from Merck as it wound down its collaboration with the pharmaceutical giant.
However, the bulk of the collaboration revenues were noncash payments that were to be recognized over the 10-year span of the original collaboration agreement.
Without those collaboration revenues, GTx would have shown a net loss this quarter of $9 million, according to company spokesman McDavid Stillwell.
The company also reported an $11.5 million loss on operations. GTx spent $8.3 million on research and development and $6.5 million on general and administrative costs in the quarter.
“GTx made good progress in the first quarter across all clinical programs,” said Mitchell S. Steiner, CEO of GTx.
“We secured financing for the second toremifene 80 milligram phase III clinical trial through the expansion of our partnership with Ipsen,” he said.
GTx and Paris, France-based Ipsen expanded their relationship in a $58 million deal announced in late March. That deal came after the U.S. Food and Drug Administration failed to approve GTx’s 80 milligram dose of toremifene in November. The drug is designed to reduce fractures in men with prostate cancer who are on hormone therapy.
The delay in the commercialization led the company to lay off 46 in December.
The company has submitted a new trial proposal to the FDA and will initiate it as early as late this year after it hears back from the government office.
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