Conatus Pharmaceuticals Inc (NASDAQ:CNAT) Releases 3Q2016 Financial Results

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Conatus Pharmaceuticals Inc

Conatus Pharmaceuticals Inc (NASDAQ:CNAT) a biotechnology firm focused on the manufacturing and commercialization of unique drugs to treat liver disease, released financial results for the quarter ended September 30, 2016.

Net loss for 3Q2016 amounted to $6.9 million against net loss of $6.1 million for 3Q2015. The net loss for the initial three quarters of 2016 came at $20.6 million against net loss of $18.1 million for the same period in 2015.

The highlights

Research and development costs came at $4.8 million for 3Q2016 compared with $4.1 million for 3Q2015. These costs stood at $13.8 million for the initial three quarters of 2016 against $12.1 million for the same period of 2015. The jump in R&D costs for the third quarter and initial nine months were mainly due to the development of the firm’s ENCORE program.

G&A costs came at $2.1 million for 3Q2016 compared with $2 million for the same period in 2015. The increase in G&A costs for the third quarter was mainly due to increased personnel expenses and consulting fees. General and administrative costs were $6.9 million for the initial nine months of FY2016 compared with $6 million for the initial nine months of FY2015. The jump in general and administrative expenses during the reported period was mainly due to higher personnel expenses and higher consulting, accounting and legal fees.

Cash/cash equivalents and marketable securities came at $31.1 million at close of September 30, 2016, compared with over $36 million at the end of December 31, 2015. Conatus Pharmaceuticals believes existing financial resources are adequate to maintain businesses for at least the subsequent 12 months.

In the last trading session, the stock price of Conatus jumped over 37% to close the day at $6.11. The gains came at a share volume of 14,700 compared to average share volume of 1.96 million.

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