Triangle drug developer NephroGenex reported late Wednesday that it lost $1.7 million, nearly four times more than its quarterly loss a year earlier, as the company increases spending to try and win regulatory approval for its products.
NephroGenex said it “made significant progress in the first quarter,” including a February IPO that raised $37.2 million and netted the company $33.4 million after expenses.
This year the 9-year-old, 7-employee company plans to begin a Phase 3 human trial of Pyridorin and initiate other regulatory filings and programs for its treatments for kidney disease. Pyridorin is an experimental treatment designed to slow the progression of diabetic nephropathy, a chronic, degenerative disease of the kidneys caused by diabetes.
The $1.7 million loss compares to a loss of $473,824 a year earlier. Research and development expenses increased to $500,000 from $300,000. General and administrative costs grew to $1 million from $100,000 as a result of new hires, increased costs for director-and-officer liability insurance, and increased costs related to running a publicly traded company.
The company’s shares have slipped since they began trading at $12 in February. The stock closed Wednesday at $5.28, down 39 cents.