ZS Pharma, Inc. (NASDAQ: ZSPH)
ZSPH shares spiked today, closing up 28.42% on reports that Actelion Ltd. (ALIOF) made a preliminary $2.5 billion acquisition offer. While the reports were not directly confirmed, both companies did confirm that preliminary, strategic conversations have been initiated Market Watch.
ZSPH Corporate Statement
ZSPH commented later in the day by releasing a statement that it has participated in preliminary discussions with Actelion regarding a potential strategic transaction. According to the statement, ZS Pharma regularly and routinely explores opportunities with various strategic partners and will continue to do so. ZS Pharma does not intend to comment further on market speculation or disclose any developments unless and until it otherwise deems further disclosure is appropriate or required ZS Pharma.
Technical Analysis
ZSPH gapped up in price today to close at $74.73, a $16.54 increase from the previous day. Looking at the chart, we see that this represents a new high in the stock price. At one point the stock traded up as high as $84.85. Volume today skyrocketed over the 90 day average (431,770) to 6,772,934.
ZS Pharma Inc. Recent Financials
On 08/06/2015 ZS Pharma released 2nd quarter financial results.
Cash, cash equivalents and short-term investments totaled $232.9 million at June 30, 2015, compared to $102.3 million as of December 31, 2014.
Research and development expenses for the quarter ended June 30, 2015 were $17.3 million, compared to $11.7 million for the same period in 2014. The $5.6 million increase in research and development (R&D) expenses was primarily due to increased personnel costs, costs associated with preparing and filing the ZS-9 NDA, including our NDA filing fee, costs associated with the Company’s clinical studies ZS006, ZS005 and ZS004E, and costs attributed to the manufacturing scale-up of ZS-9.
Selling, general and administrative expenses for the quarter ended June 30, 2015, were $15.2 million compared to $2.9 million for the same period in 2014. The $12.3 million increase in selling, general and administrative (SG&A) expenses was primarily due to non-cash stock based compensation expense of $6.4 million related to the accounting for grants of certain former employees, increases in compensation, professional fees and other expenses to support the Company’s continued expansion of operations in preparation for the potential commercial launch of ZS-9, as well as increased spending associated with operating as a public company. Total SG&A non-cash stock compensation incurred in the quarter ended June 30, 2015 was $8.0 million (inclusive of the one-time stock compensation recognized related to the former employees), compared to $0.3 million for the same period in 2014 ZS Pharma.
Company Profile
ZS Pharma, Inc., a development stage biopharmaceutical company, focuses on the development and commercialization of non-absorbed drugs to treat renal, cardiovascular, liver, and metabolic diseases. The company’s proprietary zirconium silicate technology creates ion traps that could reduce toxic levels of specific electrolytes without disturbing the balance of other electrolytes. It is developing ZS-9, insoluble non-absorbed zirconium silicate that is in Phase III development for the treatment of hyperkalemia. The company was founded in 2008 and is headquartered in Coppell, Texas Bloomberg.
