Welcome!

News Feed Item

Boston Therapeutics Reports Corporate Update and Financial Results for the Second Quarter Ended June 30, 2014

MANCHESTER, NH -- (Marketwired) -- 08/08/14 -- Boston Therapeutics, Inc. (OTCQB: BTHE) ("Boston Therapeutics" or "the Company"), a leading developer of compounds that address diabetes using complex carbohydrate chemistry, reports its financial results for the second quarter and six months ended June 30, 2014.

David Platt, Ph.D., Chief Executive Officer, Boston Therapeutics, said, "During the quarter, we experienced several key milestones, including the initiation of a new Phase IIb study of BTI-320 to augment our ongoing Phase IIb study in France. BTI-320 is a new generation of non-systemic Alpha Glucosidase Inhibitor, to reduce post-meal glucose elevation. We expect to report clinical trial results this year."

"Recently, we took steps to sharpen the focus on our core competency as a research and development organization by strengthening our management team with the appointment of Benjamin Rivnay, Ph.D. as Chief Scientist and Eric Hoberman as Manager Clinical Affairs; increasing our focus on R&D programs by adding clinical and regulatory consultants Elena Chekhova, Ph.D. and Tomasz Zastawny, Ph.D., and expanding our Medical Advisory Board to include several key individuals in the field of diabetes such as Larry Ellingson, B.Sc. Pharmacy, Meng Hee Tan, M.D., Philip Raskin, M.D., and Charles M. Clark, Jr., M.D. The Scientific and Medical Advisory Boards report to Rom Eliaz, Ph.D., a member of the Company's Board of Directors."

"Furthermore, we signed an agreement with Patheon to manufacture pharmaceutical-grade BTI-320 tablets as part of the CMC portion of our expected IND filing with the FDA. We anticipate further progress in the third quarter as we continue to grow the Company and work toward the filing of our IND in 2015. We look forward to keeping our investors informed of these developments as they occur."

Business and Clinical Highlights for the Second Quarter 2014 and Subsequent Developments:

  • Signed an agreement with pharmaceutical manufacturing company Patheon Inc. (along with Boston Therapeutics' Hong Kong-based strategic partner Advance Pharmaceutical Company) to manufacture pharmaceutical-grade tablets of the Company's lead product candidate BTI-320.

  • Entered into a strategic marketing agreement with Benchworks SD, LLC, a leading branding and marketing agency, with the goals of creating brand awareness of SUGARDOWN®.

  • Presented an overview of the Company's recent business developments and growth strategy at the SeeThruEquity Microcap Investor Conference and Marcum Microcap Conference.

  • Initiated an additional Phase IIb clinical study to assess the efficacy and safety of SUGARDOWN® in 24 patients with Type 2 diabetes taking metformin. Results from both clinical trials are expected this year.

  • Appointed Benjamin Rivnay, Ph.D., to serve as the Company's Chief Scientist, a newly created position in which Dr. Rivnay will be responsible for the development of the Company's science and technology.

Financial Results for the Second Quarter and Six Months Ended June 30, 2014:

  • Revenue for the second quarter ended June 30, 2014 was $21,391 compared to revenue of $2,118 for the second quarter ended June 30, 2013. The increase was primarily the result of a shipment of SUGARDOWN® to one customer. Revenue for the six months ended June 30, 2014 was $65,218 compared to revenue of $25,454 for the six months ended June 30, 2013. During the first quarter ended March 31, 2013, a $20,600 marketing incentive was granted to one customer for SUGARDOWN® product resulting in a reduction of revenue.

  • The gross margin deficit for the second quarter ended June 30, 2014 was ($595) compared to a gross margin deficit of ($5,853) for the second quarter ended June 30, 2013. For the six months ended June 30, 2014 the gross margin deficit was ($11,326) as compared to a gross margin deficit of ($30,454) in the comparable 2013 period. The gross margin deficit for the six months ended June 30, 2014 was primarily related to material and production cost charges and continued fixed fulfillment charges. The improvement in gross margin for the six months ended June 30, 2014 as compared to 2013 is primarily related to the increase in revenue.

  • Research and development expense for the three months and six months ended June 30, 2014 was $412,255 and $681,689, respectively, compared to $19,822 and $48,483 for the three month and six months ended June 30, 2013, respectively. The increase for the three and six months is primarily the result of expenses associated with Phase II clinical trial activities for BTI-320.

  • Sales and marketing expense for the second quarter ended June 30, 2014 was $84,821 compared to $67,170 for the second quarter ended June 30, 2013. For the six months ended June 30, 2014 sales and marketing expense was $257,556 compared to $148,396 for the six months ended June 30, 2013. The increase for the three and six months is primarily related to the hiring of employees to support the Company's sales and marketing initiatives and the engagement of a healthcare marketing company to market SUGARDOWN®. The Company ended the marketing agreement during the second quarter ended June 30, 2014.

  • General and administrative expense for the second quarter and six months ended June 30, 2014 was $708,436 and $1,813,666, respectively, compared to $421,570 and $949,740 for the second quarter and six months ended June 30, 2013, respectively. The $864,000 increase for the six months ended June 30, 2014 is due to an approximate increase of $248,000 in accounting, financial and legal professional fees related to increased legal services, the indemnification of Dr. Platt's legal costs associated with his arbitration, as well as the engagement of a finance professional to manage its accounting and financial reporting matters. In addition, $223,000 is related to non-cash, stock-based compensation primarily related to fully vested options granted during the first quarter ended March 31, 2014. Payroll and payroll related expense increased approximately $144,000 due to salary increases, the institution of an employee medical benefit program and the hiring of a new employee. Consulting and professional services increased approximately $129,000 primarily due to our business development, public relations and investor relations activities. Lastly, approximately $68,000 of the increase is related to severance costs associated with the resignation of the Company's former President, Kenneth A. Tassey, Jr., effective June 30, 2014.

  • Net loss for the second quarter ended June 30, 2014 was $1,211,095 or $0.03 per share, compared with a net loss of $519,238 or $0.03 per share in the prior year's second quarter. As of June 30, 2014, there were 38.4 million weighted average shares outstanding, compared with 19.3 million weighted average shares outstanding as of June 30, 2013. Net loss for the six months ended June 30, 2014 was $2,777,518 or $0.07 cents per share, compared with a net loss of 1,186,660 or $0.06 per share for the six months ended June 30, 2013. For the six months ended June 30, 2014 there were 37.9 million shares outstanding compared with 19.1 million for the six months ended June 30, 2013.

We have incurred recurring operating losses since inception as we have worked to bring our SUGARDOWN® product to market and develop BTI-320 and IPOXYN. IPOXYN is an injectable anti-necrosis drug specifically designed to treat lower limb ischemia associated with diabetes. We expect such operating losses will continue until such time that we receive substantial revenues from SUGARDOWN® or we complete the regulatory and clinical development of BTI-320 or IPOXYN. We anticipate that our cash resources will be sufficient to fund our planned operations into the fourth quarter of 2014. We plan to seek additional capital through private placements and public offerings of the Company's stock. There can be no assurance that the Company will be successful in accomplishing its objectives. Without such additional capital, the Company may be required to curtail or cease operations.

About BTI-320

BTI-320 is a non-systemic complex carbohydrate-based compound designed to reduce post-meal elevation of blood glucose. BTI-320 is a proprietary polysaccharide to be taken before meals and works in the gastrointestinal tract to block the action of carbohydrate-hydrolyzing enzymes that break down complex carbohydrates into simple sugars, reducing the availability of glucose for absorption into the bloodstream.

About Boston Therapeutics, Inc.

Boston Therapeutics, Inc., headquartered in Manchester, NH, (OTCQB: BTHE) is an innovator in designing compounds using complex carbohydrate chemistry. The company's product pipeline is focused on developing and commercializing therapeutic molecules that address diabetes and inflammatory diseases, including: BTI-320 (formerly PAZ320), a non-systemic 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. The company also produces and sells SUGARDOWN®, a non-systemic complex carbohydrate-based dietary food supplement designed to support healthy blood glucose. More information is available at www.bostonti.com.

Cautionary Note Regarding Forward Looking Statements

This press release contains, in addition to historical information, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or future financial performance, and use words such as "may," "estimate," "could," "expect" and others. They are based on our current expectations and are subject to factors and uncertainties which could cause actual results to differ materially from those described in the statements. Factors that could cause our actual performance to differ materially from those discussed in the forward-looking statements include, among others, that our plans, expectations and goals regarding the clinical trials are subject to factors beyond our control and provide no assurance of FDA approval of any of our future drug development plans. Our clinical trials may not produce positive results in a timely fashion, if at all, and any necessary changes during the course of the trial could prove time consuming and costly. We may have difficulty in enrolling candidates for testing, which would affect our estimates regarding timing, and we may not be able to achieve the desired results. Any significant delays or unanticipated costs in any subsequent drug trial could delay obtaining meaningful results from Phase II studies and/or preparing for Phase III studies with the current cash on hand.

Upon receipt of FDA approval, we may face competition with other drugs and treatments that are currently approved or those that are currently in development, which could have an adverse effect on our ability to achieve revenues from our approved products. Plans regarding development, approval and marketing of any of our compounds, including BTI-320, are subject to change at any time based on the changing needs of our company as determined by management and regulatory agencies. We have incurred operating losses since our inception, and our ability to successfully develop and market drugs may be affected by our ability to manage costs and finance our continuing operations. For a discussion of additional risk and other factors affecting our business, see our Annual Report on Form 10-K for the year ended December 31, 2013, and our subsequent filings with the SEC. You should not place undue reliance on forward-looking statements, and actual results may differ materially from the results anticipated in our forward-looking statements. Although subsequent events may cause our views to change, we disclaim any obligation to update forward-looking statements.

                         Boston Therapeutics, Inc.
               Condensed Statements of Operations (Unaudited)

                            Three Months Ended         Six Months Ended
                                 June 30,                  June 30,
                         ------------------------  ------------------------
                             2014         2013         2014         2013
                         -----------  -----------  -----------  -----------
Revenue                  $    21,391  $     2,118  $    65,218  $    25,454
Cost of goods sold            21,986        7,971       76,544       55,908
                         -----------  -----------  -----------  -----------
Gross margin (deficit)          (595)      (5,853)     (11,326)     (30,454)

Operating expenses:
  Research and
   development               412,255       19,822      681,689       48,483
  Sales and marketing         84,821       67,170      257,556      148,396
  General and
   administrative            708,436      421,570    1,813,666      949,740
                         -----------  -----------  -----------  -----------
    Total operating
     expenses              1,205,512      508,562    2,752,911    1,146,619

Operating loss            (1,206,107)    (514,415)  (2,764,237)  (1,177,073)

Interest expense              (4,940)      (4,823)      (9,668)      (9,587)
Other income (expense)            48            -       (2,892)           -
Foreign currency loss            (96)           -         (721)           -
                         -----------  -----------  -----------  -----------
    Net loss             $(1,211,095) $  (519,238) $(2,777,518) $(1,186,660)
                         ===========  ===========  ===========  ===========

Net loss per share -
 basic and diluted       $     (0.03) $     (0.03) $     (0.07) $     (0.06)

Weighted average shares
 outstanding basic and
 diluted                  38,397,142   19,328,286   37,924,149   19,104,565
                         ===========  ===========  ===========  ===========



                          Boston Therapeutics, Inc.
                             Balance Sheet Data

                                                    June 30,    December 31,
                                                      2014          2013
                                                 ------------- -------------

Cash and cash equivalents                        $   1,508,790 $   3,387,428

Working capital                                  $   1,317,107 $   2,859,578

Total assets                                     $   2,565,764 $   4,535,032

Total stockholders' equity                       $   1,773,939 $   3,345,270


Contact:

Boston Therapeutics, Inc.
Anthony Squeglia
Chief Financial Officer
Phone: 603-935-9799
Email: [email protected]
www.bostonti.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
"Storpool does only block-level storage so we do one thing extremely well. The growth in data is what drives the move to software-defined technologies in general and software-defined storage," explained Boyan Ivanov, CEO and co-founder at StorPool, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Is advanced scheduling in Kubernetes achievable?Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, answered these questions and demonstrated techniques for implementing advanced scheduling. For example, using spot instances and co...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...