Novacea's 4th-qtr 2006 loss widens to $7.8M

US drugmaker Novacea says that its net loss for the fourth quarter of 2006 was $7.8 million, or $0.34 per common share, versus $6.9 million, or $4.95 per share, the year before, as R&D costs reached $5.0 million from $4.7 million, due to more clinical development activity on the ASCENT-2 Phase III trial of its lead investigational cancer therapy, Asentar, in androgen-independent prostate cancer.

The rise in the firm's R&D expenses was partially offset by a drop in development costs for vinorelbine oral, as Novacea returned the US and Canadian development and commercialization rights to the product to its licensor during the fourth quarter of 2006. Last year, the firm raised $45.0 million through an initial public offering. The IPO of 6,250,000 shares of common stock at a price to the public of $6.50 per share, was completed in May. In June, the underwriters of the IPO exercized their over-allotment option to purchase an additional 657,500 shares.