Sonnet BioTherapeutics Holdings, Inc. (NASDAQ:SONN) looked for big things in Monday’s market. This, after the U.S. Food and Drug Administration issued an emergency use authorization for investigational convalescent plasma for the treatment of COVID-19 in hospitalized patients.
The biopharmaceutical company out of Princeton, New Jersey told investors Friday of its Research and development expenses, which proved to be $2.5 million for the three months ended June 30, 2020, compared to $0.4 million for the three months ended June 30, 2019.
The increase of $2.1 million was primarily due to the development of the cell line for IL12-FHAB and IL12- FHAB-IL15 manufacturing and increased costs for research and development activities due to the acquisition of Relief.
General and administrative expenses were $2.5 million for the quarter. The increase of $1.5 million was primarily due to a $1.0 million increase in professional fees and transaction related fees associated with the closing of the Merger, $0.3 million increase in insurance expenses related to directors and officer's insurance.
The remainder of the increase is due to scaling up of operations including those related to Relief.
Net loss was $11.7 million during the quarter, towering over a loss of $1.4 million in the prior-year quarter.
Said CEO Pankaj Mohan, "During the quarter, we made exceptional progress advancing our pipeline of oncology candidates, as well as announced an exciting new program to explore opportunities in the antiviral arena.
"These accomplishments were complemented by our strategic licensing activities, that included a potential partnership for the development of our low-dose IL-6 asset (SON-081) in diabetic peripheral neuropathy, an indication with significant commercial potential."
Shares leaped $1.12, or 42.4%, to $3.75.
