Lipocine Inc.
Mar 6, 2017

Lipocine Announces Financial and Operational Results for the Full Year of 2016

SALT LAKE CITY, March 06, 2017 (GLOBE NEWSWIRE) -- Lipocine Inc. (NASDAQ:LPCN), a specialty pharmaceutical company, today announced financial and operational results for the full year ended December 31, 2016.

"During the quarter and subsequent period, we have made significant progress on the development of both LPCN 1021 and LPCN 1107," said Dr. Mahesh Patel, Chairman, President and CEO of Lipocine. "We currently expect this progress to continue in the near term, with top line results from our on-going LPCN 1021 studies and a SPA filing for LPCN 1107, both expected before mid-2017."

Full Year 2016 Financial Results

Lipocine reported a net loss of $19.0 million, or $1.04 per diluted share, for the full year of 2016, compared with a net loss of $18.2 million, or $1.11 per diluted share, for the full year of 2015.

For the full year of 2016, research and development expenses were $8.1 million, compared with $12.6 million for the full year of 2015. The change was primarily due to decreased contract research organization and consultant costs of $3.8 million.  In addition, during the year ended December 31, 2015, we incurred a $2.3 million fee to file our NDA for LPCN 1021 with the FDA.  These decreases in 2016 were offset by an increase in validation and commercial batch manufacturing costs for LPCN 1021 in 2016 of $1.7 million

For the full year of 2016, general and administrative expenses were $10.4 million, compared with $5.8 million for the full year of 2015. The change was primarily due an increase of $2.0 million in personnel costs due primarily to increased salaries and stock-based compensation related to a higher average headcount in 2016, an increase of $1.2 million for pre-commercialization marketing and sales activities related to LPCN 1021, and an increase of $750,000 in legal costs for class action defense and patent interference.   

The full year of 2016 also included $0.7 million of restructuring costs.

As of December 31, 2016, Lipocine had cash, cash equivalents and marketable investment securities of $26.8 million, compared with cash and cash equivalents of $44.8 million as of December 31, 2015.

About Lipocine

Lipocine Inc. is a specialty pharmaceutical company developing innovative pharmaceutical products for use in men's and women's health using its proprietary drug delivery technologies. Lipocine's clinical development pipeline includes three development programs LPCN 1021, LPCN 1111 and LPCN 1107.  LPCN 1021, a novel oral prodrug of testosterone containing testosterone undecanoate, is designed to help restore normal testosterone levels in hypogonadal men. LPCN 1021 was well tolerated and met the primary efficacy end-point in Phase 3 testing, which utilized 24-hour pharmacokinetic data for dose adjustments, and is currently being studied in two additional Phase 3 clinical trials.  LPCN 1111, a novel oral prodrug of testosterone, originated with and is being developed by Lipocine as a next-generation oral testosterone product with potential for once-daily dosing and is currently in Phase 2 testing.  LPCN 1107, the potentially first oral hydroxyprogesterone caproate product candidate indicated for the prevention of recurrent preterm birth, has been granted orphan drug designation by the FDA. An End of Phase 2 meeting with the FDA has been completed. For more information, please visit www.lipocine.com.

Forward-Looking Statements

This release contains "forward looking statements" that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include statements that are not historical facts regarding Lipocine's product candidates and related clinical trials and the FDA review process relating to its product candidates, plans related to clinical trials, the possible outcome and timing of such clinical trials, the expected timing of clinical trial results or any related FDA review process, the path to approvability by the FDA of Lipocine's development programs, the potential uses and benefits of our product candidates, and our product development efforts. Investors are cautioned that all such forward-looking statements involve risks and uncertainties, including, without limitation, the risks that the FDA will not approve any of our products, risks related to our products, expected product benefits not being realized, clinical and regulatory expectations and plans not being realized, advance regulatory developments and requirements, risks related to the FDA approval process, the receipt of regulatory approvals, the results and timing of clinical trials, patient acceptance of Lipocine's products, the manufacturing and commercialization of Lipocine's products, and other risks detailed in Lipocine's filings with the SEC, including, without limitation, its Form 10-K and other reports on Forms 8-K and 10-Q, all of which can be obtained on the SEC website at www.sec.gov. Lipocine assumes no obligation to update or revise publicly any forward-looking statements contained in this release, except as required by law.

   
  LIPOCINE INC. AND SUBSIDIARIES
   Consolidated Statements of Operations and Comprehensive Loss 
  Years Ending December 31, 2016, 2015 and 2014 
             
           2016   2015   2014 
               
  Operating expenses:        
   Research and development   $  8,076,053  $  12,580,245  $  15,479,446 
   General and administrative      10,382,146     5,801,823     5,001,368 
   Restructuring costs      728,635      -     - 
    Total operating expenses      19,186,834     18,382,068     20,480,814 
               
    Operating loss      (19,186,834)    (18,382,068)    (20,480,814)
               
  Other income, net      216,078     173,890     108,338 
               
    Loss before income tax expense      (18,970,756)    (18,208,178)     (20,372,476)
               
  Income tax expense      (752)    (200)    (200)
               
    Net loss   $  (18,971,508) $  (18,208,378) $  (20,372,676)
               
  Basic loss per share attributable to common stock   $  (1.04) $  (1.11) $  (1.60)
               
  Weighted average common shares outstanding,      18,258,149     16,470,814     12,766,295 
  basic          
  Diluted loss per share attributable to common stock   $  (1.04) $  (1.11) $  (1.60)
               
  Weighted average common shares outstanding, diluted      18,258,149     16,470,814     12,766,295 
               
               
  Comprehensive loss:        
    Net loss   $  (18,971,508) $  (18,208,378) $  (20,372,676)
    Unrealized net gain (loss) on available-for-sale securities     24,407     (32,900)    - 
               
    Comprehensive loss   $  (18,947,101) $  (18,241,278) $  (20,372,676)
               


LIPOCINE INC. AND SUBSIDIARIES
Consolidated Balance Sheets
December 31, 2016 and 2015
            
         2016   2015  
Assets      
  Current assets:     
    Cash and cash equivalents $5,560,716  $20,007,659  
    Marketable investment securities  21,279,570   24,375,168  
    Accrued interest income  38,943   144,536  
    Prepaid and other current assets  329,548   350,160  
            
      Total current assets  27,208,777   44,877,523  
            
  Property and equipment, net of accumulated depreciation     
  of $1,092,710 and $1,060,750, respectively  103,440   75,750  
  Long-term marketable investment securities  -   400,252  
  Other assets  30,753   23,753  
            
      Total assets $27,342,970  $45,377,278  
            
            
Liabilities and Stockholders' Equity     
  Current liabilities:     
    Accounts payable $245,915  $507,067  
    Accrued expenses  1,080,254   2,884,794  
            
      Total current liabilities  1,326,169   3,391,861  
            
      Total liabilities  1,326,169   3,391,861  
            
  Commitments and contingencies     
            
  Stockholders' equity:     
    Preferred stock, par value $0.0001 per share, 10,000,000     
     shares authorized; zero issued and outstanding  -   -  
    Common stock, par value $0.0001 per share, 100,000,000    
     shares authorized; 18,462,325 and 18,250,456     
     issued and 18,456,615 and 18,244,746 outstanding  1,846   1,825  
    Additional paid-in capital  131,481,123   128,502,659  
    Treasury stock at cost, 5,710 shares  (40,712)  (40,712) 
    Accumulated other comprehensive loss  (8,493)  (32,900) 
    Accumulated deficit  (105,416,963)  (86,445,455) 
            
      Total stockholders' equity  26,016,801   41,985,417  
            
      Total liabilities and stockholders' equity $27,342,970  $45,377,278  
            

 

CONTACT: 
Morgan Brown
Executive Vice President & Chief Financial Officer
Phone: (801) 994-7383 
mb@lipocine.com

Investors:
John Woolford
Phone: (443) 213-0506
john.woolford@westwicke.com