Cocrystal Pharma Inc (OTCBB:COCP) a biotech firm working to formulate innovative treatments for cure of human viral diseases issued quarterly results on Form 10-Q with the SEC. In the quarter, the prime focus remained on Research & Development activities as the company worked to acquire regulatory approve to commence future clinical trials. It worked on a preclinical drug known as “Nuc” which had inhibitors of ‘influenza polymerase’ deemed important for viral genome reproduction.
Due to increased focus on R&D initiatives in the quarter that ended March 31, 2015, the company required additional funds to support the studies in the absence of which the R&D work would have halted. For the purpose, it received grant amounting to $27,000 for its alliance with the University of Mississippi in recent quarter whereas no grant was approved in the same period a year earlier.
The increased research and development costs can be attributed to compensation related expenses which surged due to higher number of employees working on key projects. It also included compensation costs incurred on Scientific Advisory Board. The increased focus on R&D demanded additional lab supplies, facilities and equipments adding to total R&D costs.
The company announced R&D expenses of $1.56 million in the three months ended March 31, 2015, higher than $967,000 recorded in the same period in 2014. The jump of 61% in R&D expenses can be attributed to increased personnel associated with the merger process of Cocrystal with RFS Pharma closed in November 2014. The company also engaged ten scientific employees in the quarter that resulted in additional costs.
In last trading session, the share price of COCP declined more than 2% to close the trading session at $1.19. The decline came at a share volume of 289,343 compared to average share volume of 546,561.