Cocrystal(US:COCP)2024-08-14 12:00Research and Development - Total research and development expenses for the six months ended June 30, 2024, were $7,258,000, an increase of $550,000 compared to $6,708,000 for the same period in 2023, primarily due to ongoing clinical trials [82]. - Research and development expenses for the three months ended June 30, 2024, were $4,308,000, up from $2,801,000 in 2023, reflecting the advancement of the Influenza CC-42344 product candidate into a Phase 2a clinical trial [82]. - The company completed enrollment of 78 subjects in the Phase 2a human challenge study for oral CC-42344 in May 2024 [65]. - CC-42344 demonstrated excellent antiviral activity against influenza A strains, including avian pandemic strains and strains resistant to existing treatments [64]. - The company is developing inhaled CC-42344 for prophylactic treatment of influenza A infections, with preclinical data showing excellent antiviral activity [66]. - Oral CDI-988, a novel protease inhibitor for noroviruses and coronaviruses, is being evaluated in a Phase 1 study in Australia, with favorable safety results reported [67]. - The company has identified promising inhibitors targeting norovirus replication enzymes, with potential for effective treatment across all genogroups [77]. Market Opportunity - The global hepatitis C market is projected to remain significant, with an estimated 50 million people worldwide having chronic HCV infections [79]. - CC-31244, an HCV NNI, is being developed for ultra-short treatment regimens of four to six weeks, aiming for a high sustained virologic response [80]. - Influenza is responsible for approximately $10.4 billion in direct medical costs annually in the U.S., highlighting the significant market opportunity for effective antiviral treatments [68]. Financial Performance - Interest income for the six months ended June 30, 2024, was $371,000, a significant increase from $140,000 for the same period in 2023, representing a growth of 164.3% [84]. - Foreign exchange loss for the six months ended June 30, 2024, was $64,000, compared to $45,000 for the same period in 2023, indicating a 42.2% increase [85]. - Net loss for the six months ended June 30, 2024, was $9,299,000, slightly improved from a net loss of $9,355,000 for the same period in 2023 [87]. - Net cash used in operating activities decreased to $8,202,000 for the six months ended June 30, 2024, from $8,659,000 in the same period of 2023, a reduction of 5.3% [87]. - The company had $18,143,000 in unrestricted cash as of June 30, 2024, which is expected to sustain operations for more than the next 12 months [88]. - The company has not yet established a source of revenue sufficient to cover its operating costs and has incurred operating losses since inception [89]. - The company has not conducted any sales under the At-The-Market Offering Agreement during the six months ended June 30, 2024, despite having the capacity to issue up to $10,000,000 in shares [90]. - Future profitability is contingent upon the successful development and commercialization of product candidates, with no assurance that profitability will be achieved [91]. - The company has incurred operating losses and negative operating cash flows on an annual basis since inception, indicating ongoing financial challenges [89].