Nabi Biopharmaceuticals (Nasdaq:NABI) is recovering from its failed Phase III nicotine addiction drug trial back in July. The biotechnology company based in Rockville reported improved earnings for the third quarter ended September 26, 2011. It narrowed its net loss to $2.9 million or $-0.07 cents per share from $5.1 million or $-0.12 cents per share in third quarter of 2010 and $4.6 million in the second quarter ended June 26, 2011.
But revenues dropped 91 percent to $1.1 million compared to $12.3 million in the third quarter of 2010. The company developing the NicVAX nicotine addiction drug used net cash of $14.5 million in operating activities for the nine months ended September 24, 2011. It still had cash and cash equivalents of $92.9 million at the end of the same period.
"I am clearly disappointed with the results of the first NicVAX Phase III trial that was announced earlier in the quarter," commented Dr. Raafat Fahim, President and Chief Executive Officer of Nabi Biopharmaceuticals. "Immediately after announcing the results, we have intensified our efforts to reduce our operating costs and the financial results of the third quarter, in part, reflect that effort. In the quarter, we received a $5 million milestone related to the launch of Phoslyra from Fresenius. We expect results from the second Phase III trial around the end of the year, which may shed some additional light as to the reasons for the failed study. Finally, we continue to closely monitor the Dutch study of NicVAX in combination with varenicline to evaluate the relapse-prevention potential of NicVAX."