|By Marketwired .||
|August 9, 2013 10:59 AM EDT||
MANCHESTER, NH -- (Marketwired) -- 08/09/13 -- Boston Therapeutics, Inc. (OTCQB: BTHE) ("Boston Therapeutics" or "the Company"), a drug development company focused on complex carbohydrates to treat diabetes and inflammatory diseases, reports its financial results for the second quarter and six months ended June 30, 2013.
During the second quarter, the Company continued to focus on developing the pathway to commercialization of its lead compound PAZ320 to address blood sugar management. PAZ320 addresses unmet medical needs in the large and growing diabetes drug market, which analysts estimate at $35 billion globally per year. PAZ320 is a chewable tablet that, when taken before meals, works non-systemically in the gastrointestinal tract to block the action of carbohydrate-hydrolyzing enzymes that break down carbohydrates into glucose. This action reduces the amount of glucose available for absorption into the bloodstream.
"During the second quarter we requested an IND application meeting with the Food & Drug Administration (FDA), and our discussions continue regarding the trial design for our international Phase III PAZ320 trial for patients with Type 2 diabetes," said David Platt, Ph.D., Chief Executive Officer, Boston Therapeutics. "We are focused on commercializing PAZ320 as the first compound in a new class of therapies for post-meal blood sugar, called carbohydrate hydrolyzing enzyme inhibitors (CHEI)."
Dr. Platt continued, "We are exhibiting at the American Association of Diabetes Educators (AADE) meeting in Philadelphia on August 7-9. AADE, is a multidisciplinary membership organization for healthcare professionals who specialize in teaching patients about diabetes and how to self-manage the disease. Founded in 1973, AADE works to define the practice of diabetes education, increase patients' access to the services of diabetes educators, and provide members with the support and tools to become leaders in the field of diabetes care. AADE represents and supports diabetes educators by providing members with the resources to stay abreast of the current research, methods and trends in the field and by offering opportunities to network and collaborate with other healthcare professionals.
"In addition, we are pleased that data from our PAZ320 Phase II clinical trial is expected to be published in the July/August issue of Endocrine Practice, a leading peer-reviewed journal. As the Company continues to achieve its milestones, we look forward to furthering our drug development and commercialization pathway for therapies that address the growing diabetes market," Dr. Platt concluded.
Financial Results for the Second Quarter and Six Months Ended June 30, 2013:
- Revenue for the second quarter was $2,118, compared with $2,376 in the prior year's quarter. Six-month revenue was $25,454, compared with $21,230 in the prior year's six-month period. Revenue for each period was generated from the sales of SUGARDOWN®.
- Cost of goods sold for the quarter ended June 30, 2013 was $7,971, compared with $4,162 in the prior year's second quarter. Cost of goods sold for the six-month period ended June 30, 2013 was $55,908 and $31,757 for the comparable 2012 period. The increase in the cost of goods sold was the result of the shipment of the product to the customer referenced above. The Company's negative gross profit is attributable to cost of goods sold outpacing sales as a result of additional fixed costs related to the outsourced fulfillment operation, and manufacturing scale-up from small to production-grade equipment.
- Research and development expense for the quarter ended June 30, 2013 was $19,822 compared with $67,924 for the prior year's second quarter. For the six-month period, R&D expense was $48,483, compared with $119,552 in the 2012 six-month period. The 2013 decrease is the result of the completion of a clinical trial in 2012 and financial constraints in 2013.
- Sales and marketing expense for the three months ended June 30, 2013 was $67,170, compared with $66,898 in the prior year's three-month period. For the current six month period, sales and marketing was $148,396 compared with $134,078 in 2012. The increase is the result of a greater emphasis on sales and marketing.
- General and administrative expense for the second quarter ended June 30, 2013 was $421,570, compared with $139,435 in the prior year's second quarter. For the current six-month period, G&A was $949,740, compared with $263,971 in 2012. The increase was due primarily to stock-based compensation, added employees, accounting and legal fees and professional and consulting in the six-month period ended June 30, 2013.
- Net loss for the second quarter 2013 was $519,238 or $0.03 per share, compared with a net loss of $281,989, or $0.02 per share in the prior year's second quarter. For the six-month period, net loss was $1,186,660, or $0.06 per share, compared with $539,394 or $0.03 per share in 2012.
About Boston Therapeutics, Inc.
Boston Therapeutics, headquartered in Manchester, NH, (OTCQB: BTHE) is a leader in the field of complex carbohydrates. The Company's product pipeline is focused on developing and commercializing therapeutic molecules for Type 2 diabetes, including: PAZ320, a non-systemic chewable therapeutic compound designed to reduce post-meal glucose elevation, and IPOXYN, an injectable anti-necrosis drug specifically designed to treat lower limb ischemia associated with diabetes. More information is available at www.bostonti.com.
Forward Looking Statements
Any statements in this news release about future expectations, plans and prospects for the Company constitute forward-looking statements as defined in the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in such statements.
More information about those risks and uncertainties is contained and discussed in the Company's most recent quarterly or annual report and in the Company's other reports filed with the Securities and Exchange Commission. The forward-looking statements represent the Company's views as of the date of this news release and should not be relied upon to represent the Company's views as of a subsequent date. While the Company anticipates that subsequent events may cause the Company's views to change, the Company disclaims any obligation to update such forward-looking statements.