Phaxiam Therapeutics SA (NASDAQ:PHXM) stock fell 0.40% (As on September 22, 11:04:20 AM UTC-4, Source: Google Finance) after the company in the first half of FY 23 has reported the net loss of €12.2 million, compared with a net loss of €1 million for the same period of 2022, which benefited from the €24.4 million net gain on the sale of the Princeton facility in April 2022. Operating expenses of €12.7 million in the first half of 2023 were 50% lower (i.e. a €12.5 million reduction) than in the previous year, the decrease being driven by the 80% reduction of R&D expenses, with the closing of Princeton operations and the termination of ex-Erytech clinical development activities. PHAXIAM’s G&A expenses in the first half of 2023 increased by €1.3 million (+17%) versus the previous year, an increase related to the merger transaction and other merger-related costs. As of June 30, 2023, PHAXIAM had cash and cash equivalents totaling €25.2 million (approximately $27.5 million), compared with €38.8 million as of December 31, 2022. The €13.6 million decrease in cash position during the first half of 2023 was the result of a €12.1 million net cash utilization in operating activities and investing activities and €1.6 million used in financing activities, mostly related with the start in 2023 of the reimbursement of the ‘PGE’, Covid-loan, while the variation of the U.S. dollar against the euro led to a €0.3 million negative currency exchange impact.

Meanwhile, on September 18, 2023, PHAXIAM announced the completion of its reverse share split on ordinary shares and ADRs. The reverse share split involved the exchange of ten (10) existing shares with a par value of ten-euro cents (€0.10) for one (1) new share with a par value of one euro (€1). With this reverse stock split now effective, the Company intends to regain compliance with The Nasdaq Global Select Market minimum $1 bid price requirement.

Additionally, the company plans to launch new and first phase 2b/3 global pivotal study in Prosthetic Joint Infections (PJI) in 2H 2024. Interactions with FDA (Pre-IND) and EMA (Scientific advice) planned in Q4 2023, to finalize the design of the Phase 2b/3 study in PJI. The company also plans to launch Phase 1 study in Endocarditis Infections in Q4 2023.

With its lead S. aureus program, PHAXIAM pursues the ambition to propose a therapeutic solution to patients who failed traditional antimicrobial treatments in complex mono-bacterial S. aureus infections in different high-value indications.