Tranzyme's Costs and Revenue Rise
Tranzyme's Costs and Revenue Rise [the News & Observer, Raleigh, N.C.]
From News & Observer (Raleigh, NC) (May 13, 2011)
May 13--Tranzyme Pharma, a Durham drug-development company that raised nearly $50 million through an IPO last month, saw its first quarter revenue increase 64 percent.
Revenue for the three-month period that ended March 31 was $2.3 million.
The company reported a net loss of $3.4 million for the quarter, up from a loss of $2.7 million a year ago, mainly because of increased spending on clinical trials.
Tranzyme spent $4.5 million on research and development in the quarter, compared with $2.9 million in the same period a year ago.
Tranzyme's IPO was the first for a Triangle company since SciQuest of Cary began trading in September. The company was forced to cut the size of its offering to complete the deal.
The company is expected to use the money it raised for further clinical testing of experimental drugs to treat gastrointestinal problems.
Tranzyme is testing a drug that helps restart the body's digestive functions after bowel or abdominal surgeries.
Another promising medicine treats a stomach condition that afflicts people with diabetes.
Both represent large potential markets, and Tranzyme has attracted larger pharmaceutical companies as partners, including Bristol-Myers Squibb.
Tranzyme shares closed at $4.06, down 8 cents for the day. The stock began trading April 4 at $4 per share.
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Posted: May 2011