CymaBay Therapeutics Inc (NASDAQ:CBAY) was a massive mover during Tuesday’s trading session. The stock surged by close to 26% on the back of high volumes, which were 4.2 times the daily average. The stock has been in a downtrend and seems to have formed a strong bottom near levels of $1.23. The stock has witnessed strong buying interest over the last few trading sessions. The index for relative strength has given a buy signal, which is a huge positive. The stock currently trades below all daily moving averages. Traders see the stock heading to levels of $1.76 in the near term.
CymaBay Therapeutics Inc (NASDAQ:CBAY) announced financial results for 3Q2015. The biggest highlight was the net loss figure that amounted to $5.9 million during the quarter.
CymaBay is known for developing different therapies that can be used to treat metabolic diseases requiring quick medical support.
Financial Highlights
CymaBay spent a lot of money during the previous quarter on research and development activities to ensure that it could live up to customers’ expectations. It resulted in a total R&D expenditure of $4.5 million during the three-month period ending September. It was 18% higher than the R&D expenses reported by the company during the same period last year. General and administrative expenses for the same period were $2.2 million, up 29% from the G&A expenses reported during 2Q2014.
CymaBay reported a total net loss of $0.27 per share or $5.9 million during the quarter compared to $0.44 or $6 million in total during the same period in 2014. The primary reason behind this reduction in net loss was due to a net cash gain of $1.1 million during 3Q2015 as compared to the net-cash loss of $0.3 million in 3Q2014. It was driven by the difference in the calculated value of mark to market value of the warrant liability of CymaBay.
Not long ago, CymaBay completed the IPO procedure and managed to generate a whopping $21 million. The procedure included the over-allotment option to all the underwriters. Soon after the public offering initiative, it also refinanced its loan facility with Silicon Valley Bank and Oxford Finance LLC for an aggregate sum of $15 million.
At the end of the third quarter, CymaBay Therapeutics Inc (NASDAQ:CBAY) had a total of $46.9 million of cash and cash equivalents as compared to $34.8 million of the cash and cash equivalents at the end of December 2014. The senior management team of the company looks forward to improving these financial figures in the coming quarters.