Capnia, Inc. (CAPN) saw its loss narrow to $2.61 million, or $0.16 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $2.84 million, or $0.22 a share.
Revenue during the quarter grew 17.36 percent to $0.28 million from $0.24 million in the previous year period. Gross margin for the quarter period stood at positive 21.83 percent as compared to a negative 6.20 percent for the previous year period.
Operating loss for the quarter was $2.96 million, compared with an operating loss of $3.51 million in the previous year period.
"During the fourth quarter, we embarked on a bold new strategic direction for our Company by signing a definitive agreement to merge with Essentialis, creating a dynamic new organization dedicated to developing therapies for rare diseases where there is significant unmet need," said Anish Bhatnagar, M.D., chief executive officer of Capnia. "With the merger now complete, we look forward to advancing our lead asset, diazoxide choline controlled-release DCCR into Phase II/III clinical development for the treatment of Prader-Willi Syndrome PWS, a rare and often fatal metabolic condition. DCCR is a once-daily oral tablet that has shown great potential in addressing the hallmark symptoms of PWS, most notably hyperphagia. We are eager to initiate this development program as we work to become a leader in the rare disease space."
Working capital drops significantlyCapnia has witnessed a decline in the working capital over the last year. It stood at $2.09 million as at Dec. 31, 2016, down 34.80 percent or $1.12 million from $3.21 million on Dec. 31, 2015. Current ratio was at 2.23 as on Dec. 31, 2016, up from 2.01 on Dec. 31, 2015.
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