Stock Update (NASDAQ:BIOD): Biodel Inc Reports First Quarter Fiscal Year 2016 Financial Results

Biodel Inc (NASDAQ:BIOD) reported financial results for the first fiscal quarter ended December 31, 2015.

Corporate updates since last fiscal quarter:

  • In October 2015, the company committed to a restructuring plan designed to reduce infrastructure costs and improve efficiency of research and quality-related activities. The company estimated that it will incur one-time cash severance payments of approximately $0.3 million in connection with theOctober 2015 restructuring and reduce its cash burn by approximately $2 million annually.
  • In December 2015, the company announced a plan to explore strategic alternatives to further realize value from its pipeline assets and to preserve the company’s cash balance.
  • In January 2016, the company committed to an additional restructuring plan designed to further reduce operating costs while it evaluates its strategic alternatives. The company estimated that it will incur one-time cash severance payments of approximately $1.3 million in connection with the January 2016 restructuring and will reduce its average operating cash burn to approximately $1.1 million per quarter.
  • The company has retained Ladenburg Thalmann & Co. to assist with the review of strategic alternatives. Also, the company announced in January 2016that its board of directors appointed Gary G. Gemignani as interim chief executive officer, with primary responsibility of managing the strategic alternatives process.

“As recently announced, we have significantly reduced our operating cash burn and are focused on exploring strategic alternatives that can provide substantial value to our shareholders,” said Gary Gemignani, Biodel’s interim CEO. “While we cannot predict the timing of when the process may conclude, we plan to execute expeditiously and look forward to providing an update as we move forward.”

First Quarter Financial Results

Biodel reported a net loss of $3.2 million, or $0.05 per share for the quarter ended December 31, 2015. These results compare to a net loss of $4.7 million, or $0.20 per share, for the quarter ended December 31, 2014.

Biodel did not recognize any revenue during the quarter ended December 31, 2015 or 2014.

At December 31, 2015, Biodel had cash and cash equivalents of $37.0 million and 64.1 million shares of common stock outstanding. (Original Source)

Shares of Biodel closed last Friday at $0.26, up $0.01 or 3.13%. BIOD has a 1-year high of $1.48 and a 1-year low of $0.22. The stock’s 50-day moving average is $0.27 and its 200-day moving average is $0.45.

On the ratings front, Biodel has been the subject of a number of recent research reports. In a report issued on December 18, Ladenburg Thalmann analyst Matthew Kaplan downgraded BIOD to Hold. Separately, on the same day, William Blair’s John Sonnier downgraded the stock to Hold .

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Matthew Kaplan and John Sonnier have a total average return of -7.1% and 1.4% respectively. Kaplan has a success rate of 40.0% and is ranked #2783 out of 3579 analysts, while Sonnier has a success rate of 42.4% and is ranked #1162.

Biodel Inc is a specialty biopharmaceutical company. The Company is focused on the development and commercialization of treatments for diabetes patients.


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