Infinity Posts Q4 Losses Amid Slacked Recoveries

Northern, WI 03/06/2013 (avauncer) - Infinity Pharmaceuticals Inc.(NASDAQ:INFI) announced it suffered losses in the fourth quarter as research and developmental costs hiked by 34% while recovery of trade receivables slacked. The reason for increase in the R&SD costs was that the clinical trials of two of its medicines were initiated last year; none of the company’s medicines have been approved as yet only two of its products are currently undergoing clinical trials. The company’s stock traded at $46.81 which is the highest mark it reached since 200.

One candidate drug IPI-504, is a lung cancer treatment which is going through mid stage studies. IPI-145 the other candidate drug, is an oral PI3-kinase inhibitor for blood cancer which has also shown a positive response for treating inflammation in asthma and rheumatoid arthritis afflicted patients. It is being tested for its efficacy towards asthma in phase II of clinical trials, while its efficacy for blood cancer and rheumatoid arthritis is in early stages of testing.

The company’s losses rose from $14.1 million to $47 million i.e $1.15 a share as against 53 cents a share a year earlier. Analysts’s estimate was 84 cents a share.  During the quarter and its partnership with Purdue Pharmaceutical Products reaped $22.3 million. R&D costs rose from $29.9 million to $40 million.

During the full year 2012, the company incurred losses of $54 million ($1.70 a share) compared to $40 million ($1.50 a share) in 2011. It share of revenue from Purdue partnership declined from $92.8 million to $47.1 million.

Shares of Infinity Pharmaceuticals Inc.(NASDAQ:INFI) were up by 3.08% and currently trading at $46.53