Cocrystal Pharma Inc (NASDAQ:COCP) Reports A Loss Of $2.7 Million In Q1 2021: Expects Future Payments Of $156 million

Cocrystal Pharma Inc (NASDAQ:COCP) widened its loss marginally to $2.7 million in Q1 2021. It holds a CE (Cash Equivalents) and a cash balance of $33.3 million.

The company did not realize revenues in Q1 2021 because Merck & Co., Inc (NYSE:MRK) took over the influenza A/B compounds development activities and assumed related expenses in mid-January 2021. 

In 2020, Cocrystal received revenues from Merck for the collaborative research and development of influenza A/B compounds. As a result, Cocrystal reported revenues of $461,000 in Q1 2020.

Expects to receive $156 million 

However, Cocrystal would receive $156 million from Merck in the future towards the sales and regulatory milestones and development expenses besides royalties on product sales as per the terms of the collaborative agreement.

Its R&D spending on influenza and COVID-19 programs in Q1 2021 increased marginally to $1.6 million. The G&A expenses are almost flat at $1.2 million.

Raises $36.4 million

Cocrystal raised $36.4 million through a UPO (underwritten public offering) of 26 million shares in May 2021. 

CEO of Cocrystal, Gary Wilcox, said the company could advance its discovery and development of innovative antiviral compounds to satisfy unmet medical needs worldwide and improve its revenues significantly. The finances raised in the previous month would suffice for its product development activities and planned strategies until the next three years.

President of Cocrystal, Sam Lee, said the company is on track to reach its milestones using its influenza A antiviral programs, norovirus, and coronavirus programs. As announced earlier this month, the company would continue to develop innovative SARS-CoV-2 oral protease inhibitors. 

Cocrystal recently showed a robust in vitro synergistic effect between its CDI-45205, a protease inhibitor, and remdesivir. The company is evaluating in vitro activity of its SARS-CoV-2 3CL protease inhibitors against new and emerging SARS-CoV-2 variants.

Lee further said the company expects to publish the results of its proof of concept mouse model using its norovirus protease inhibitors in June 2021. 

Significant market opportunities

Cocrystal could develop an effective remedy for norovirus gastroenteritis by targeting the viral protease. The company can enjoy significant market opportunities because no effective treatments exist for norovirus gastroenteritis. 

Cocrystal focuses on completing IND enabling studies for CC-42344. It is on track to commence Phase 1 clinical studies in Q3 2021.