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SEC Filings

S-1/A
OREXIGEN THERAPEUTICS, INC. filed this Form S-1/A on 04/09/2007
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collaborative agreement with Eli Lilly. Cypress accounted for 34% and Eli Lilly accounted for 66% of our revenue for the year ended December 31, 2005.
 
Research and Development Expenses.  Research and development expenses increased to $9.7 million for the year ended December 31, 2005 from $6.1 million for the year ended December 31, 2004. This increase of $3.6 million was due primarily to increased expenses in connection with clinical trials and consulting expenses totaling approximately $2.9 million. In addition, salaries and related personnel costs increased by approximately $229,000 and stock-based compensation costs increased by approximately $214,000.
 
General and Administrative Expenses.  General and administrative expenses increased to $3.4 million for the year ended December 31, 2005 from $1.6 million for year ended December 31, 2004. This increase of $1.8 million was primarily due to an increase of approximately $900,000 related to stock-based compensation charges and $600,000 for salaries and related personnel costs as we expanded our general and administrative functions to support our operations.
 
Interest and Other Income.  Interest income increased to $744,000 for the year ended December 31, 2005 from $47,000 for the year ended December 31, 2004. This increase of $697,000 was due to the increase in average cash and investment balances as a result investing the proceeds received from the sale of Series B Preferred stock in May 2005.
 
Comparison of year ended December 31, 2004 to year ended December 31, 2003
 
Research and Development Expenses.  Research and development expenses increased to $6.1 million for the year ended December 31, 2004 from $1.2 million for year ended December 31, 2003. This increase of $4.9 million was due primarily to increased expenses in connection with clinical trials and consulting expenses totaling approximately $4.8 million.
 
General and Administrative Expenses.  General and administrative expenses increased to $1.6 million for the year ended December 31, 2004 from $700,000 for the year ended December 31, 2003. This increase of $900,000 was due primarily to an increase in salaries and related personnel costs totaling approximately $261,000 and an increase in legal expenses of approximately $518,000.
 
Interest and Other Income.  Interest income increased to $47,000 for the year ended December 31, 2004 as a result from an increase in average cash balances.
 
Interest Expense.  Interest expense decreased by $44,000 for the year ended December 31, 2004 due to the principal amount outstanding under promissory notes being converted into equity during January 2004.
 
Liquidity and Capital Resources
 
Since inception, our operations have been financed primarily through the private placement of equity securities. Through December 31, 2006, we received net proceeds of approximately $75.8 million from the sale of shares of our preferred and common stock as follows:
 
  •      from September 12, 2002 to December 31, 2006, we issued and sold a total of 1,053,572 shares of common stock for aggregate net proceeds of $14,801;
 
  •      in March 2004, we issued and sold a total of 9,322,035 shares of Series A redeemable convertible preferred stock for aggregate net proceeds of $9.2 million and the conversion of promissory notes and interest thereon totaling $1.7 million;
 
  •      from April 2005 to May 2005, we issued and sold 14,830,509 shares of Series B redeemable convertible preferred stock for aggregate net proceeds of $34.9 million; and
 
  •      in November 2006, we issued and sold a total of 8,771,930 shares of Series C convertible preferred stock for aggregate net proceeds of $29.9 million.


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