NephroGenex Inc (NRX): Drug Success And Cash Shortage Remains An Issue
Although NephroGenex Inc (NASDAQ:NRX) is not currently generating revenue, the young drug company is hard at work to develop drug products that can earn it good revenue and ignite rapid growth.
Positive safety data
The company recently issued an update on its lead drug candidate for diabetic nephropathy, which is a degenerative kidney disease that affects millions of people in America and elsewhere. NephroGenex Inc (NASDAQ:NRX) disclosed that its investigational drug known as pyridorin, was found to be safe in a study that sought to assess its cardiac safety.
Although there are already standard treatments for diabetic nephropathy, they pose cardiac risks. As such, cardiac safety approval for pyridorin is important as it offers strong commercial support for the drug.
Pyridorin is an oral drug that is designed to combat diabetic nephropathy by addressing its underlying causes, which is not the case with the existing therapies. That makes it a likely better choice in the treatment of the condition than the existing therapies. NephroGenex Inc (NASDAQ:NRX) also disclosed that it was working on an intravenous version of the drug, mainly to address some other kidney injuries.
Diabetic nephropathy can be fatal and affects about 6 million people in America. Pyridorin is expected to help with the slowdown of its progression to offer relief to the patients.
NephroGenex Inc (NASDAQ:NRX) is currently spending a lot of money on its drug development projects. The company’s cash position appears to be growing weak, which raises liquidity concern given that the company is not generating revenue currently. NephroGenex disclosed having $8.02 million, down from $11.62 million. The company may be required to improve its cash position to achieve financial flexibility.
At the end of the most recent quarter, NephroGenex Inc (NASDAQ:NRX) disclosed $27.15 million in total assets, down from $30.51 million from the previous quarter. Total liabilities at the end of the quarter were up to $2.96 million from $2.12 million in the prior one.