DURECT Corporation (NASDAQ:DRRX) Q2 2023 Earnings Conference Call August 9, 2023 4:30 PM ET
Company Participants
Timothy Papp - CFO & Secretary
James Brown - Co-Founder, CEO, President & Director
WeiQi Lin - EVP, Research & Development and Principal Scientist
Keith Lui - SVP, Business Development, Commercial & Medical Affairs
Conference Call Participants
Richard Miller - Cantor Fitzgerald
Francois Brisebois - Oppenheimer
Antonio Arce - H.C. Wainwright & Co.
Sean Kim - JonesTrading
Operator
Greetings, and welcome to the DURECT Corporation Second Quarter Earnings Call. [Operator Instructions].
It is now my pleasure to introduce your host, Tim Papp, Chief Financial Officer. Thank you, Sir. You may begin.
Timothy Papp
Good afternoon, and welcome to DURECT Corporation's Second Quarter 2023 Earnings Conference Call. This is Tim Papp, Chief Financial Officer of DURECT.
Before we begin, I would like to remind you of our Safe Harbor statement. During the course of this call, we may make forward-looking statements regarding the development of larsucosterol, expected product benefits, market potential, clinical trial results, regulatory approval and the company's financial projections. These forward-looking statements involve risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements, including the risk that larsucosterol does not meet the endpoints in the AHFIRM trial. Further information regarding these and other risks can be found in our SEC filings, including our 10-K and 10-Qs, under the heading Risk Factors.
To begin, I would like to review our second quarter 2023 financial results. Our total revenue in the second quarter were $2.1 million, similar to the prior year. R&D expenses were $7.9 million compared with $8.8 million for the prior year. The decrease was primarily due to lower employee-related costs and contract research expenses, partially offset by higher costs associated with the AHFIRM trial and higher contract manufacturing costs. SG&A expenses were $3.8 million compared with $4 million for the prior year. This decrease was primarily due to lower patent expenses and recruiting costs.
As of June 30, 2023, we had cash and investments of $34.9 million as opposed to $43.6 million at December 31, 2022. Subsequent to the end of the quarter, in July 2023, we completed a registered direct offering, raising $13.8 million in net proceeds. Our cash burn in the second quarter was approximately $10.1 million, excluding proceeds from sales under our ATM program, and we believe our cash on hand is sufficient to fund operations through mid-2024.