DURECT Corporation (NASDAQ:DRRX) Q3 2022 Earnings Conference Call November 2, 2022 4:30 PM ET
Company Participants
Tim Papp - Chief Financial Officer
Jim Brown - Chief Executive Officer
Norman Sussman - Chief Medical Officer
Keith Louie - Business Development and Commercialization
Conference Call Participants
Kristen Kluska - Cantor Fitzgerald
Operator
Greetings. And welcome to the DURECT Corporation Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]
As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tim Papp, Chief Financial Officer. Thank you, Mr. Papp. You may begin.
Tim Papp
Good afternoon. And welcome to our third quarter 2022 earnings conference call. This is Tim Papp, Chief Financial Officer of DURECT Corporation.
Before beginning I would like to remind you of our Safe Harbor statement. During the course of this call, we may make forward looking statements regarding DURECT’s product development, expected product benefits, our development plans, future clinical trials or projected financial results.
These forward-looking statements involve risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements. 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.
I would like to review our third quarter financial results. Total revenues in the third quarter of 2022 were $12 million compared to $2.2 million in the third quarter of 2021. Revenues for the quarter include $10 million of milestone payments earned pursuant to our POSIMIR agreement with Innocoll.
R&D expense was $9.9 million as compared to $8 million for the prior year. The increase was primarily due to higher clinical trial expenses for our ongoing AHFIRM trial, contract manufacturing expenses, and employee benefit costs. SG&A expenses were $3.9 million as compared to $3.2 million for the prior year, primarily due to higher employee benefit costs, patent expenses and consulting expenses.
As of September 30, 2022, we had cash in investments of $52 million as compared to $70 million at December 31, 2021, and our cash burn during Q3 was $2.3 million.
Before I turn the call over to Jim, I would like to remind shareholders about the upcoming shareholder meeting scheduled for November 22. By now, all shareholders should have received their proxy statements and voting instructions. The purpose of this meeting is to approve a potential reverse split, which would enable DURECT to maintain our NASDAQ listing.