Oncothyreon Inc (USA) (NASDAQ:ONTY) 4Q Losses Continue To Drive Stock Valuation Down
Oncothyreon Inc (USA) (NASDAQ:ONTY) which is a small capped bio tech firm, has been inhabiting the negative side of the graph at the markets ever since it reported its fourth quarter and full year operational results for 2013 on 13th March. Since the announcement, the stock has declined by close to 20 percent in its market valuation and partially reverses the gains it had accumulated in it past 30 days in the run up to the earnings call.
Near Doubling Of Losses Pushes Stock Into Bear Territory
The reasons for the dramatic fall in the investor confidence in this stock were the weak results for the just concluded quarter and a very watered down outlook for the current full year operations. For the full year 2013, the firm reported net loss of $41.2 million which was well above the $28.5 million losses it had registered in FY12. This translated to 62 cents per share loss in 2013, as against the 6 cents per loss share it had recorded in 2012.
Company Explains Losses As Investment For Future
Oncothyreon Inc (USA) (NASDAQ:ONTY) Chief Financial Officer, Vice President – Corporate Development and Company Secretary while addressing the conference call, post the earnings announcement went on to provide her commentary on the big jump in losses for the quarter by highlighting that, “The increase in net loss was primarily attributable to the difference in the change of the fair value of warrant liability with $2.3 million in noncash income for the year ended December 31, 2013 compared with $25.5 million in noncash income for the prior year. Research and development expenses also increased, primarily due to the $10 million up-front payment to Array”. As of end of fiscal and calendar year 2013 the firm had managed to accumulate a total of $72.6 million in cash which was slightly lower than the $83.8 million that was recorded in 2012 year end.