Ziopharm Oncology Inc. said Monday it lost $10.7 million in the second quarter compared to a profit a year earlier when the drug developer benefited from a gain in non-cash warrant income.
The New York-based cancer treatment developer lost 16 cents per share in the three months that ended June 30. That compares with net income of $9 million, or 19 cents per share, in last year's quarter.
Ziopharm recorded $200,000 in contract research revenue in the latest quarter compared to none in the second quarter of 2010.
Last year, the company recorded a $14.1 million gain in the quarter attributable to a change in liability-classified warrants arising mainly from a drop in the company's stock price.
This year, the company also saw an increase in clinical trial expenses, as a potential treatment for metastatic soft tissue sarcoma went through late-stage testing. Research and development costs, including the costs of research contracts, rose to $9.1 million from $2.2 million.
The company expects clinical trial expenses to continue increasing.
Ziopharm ended the quarter with about $130.3 million in cash and expects its existing cash resources can support operations into early 2013. But it also said that could change depending on its research progress.
Ziopharm shares fell 17 cents, or 3.1 percent, to $5.27 in afternoon trading.