6.5%, during fiscal 2012 compared to fiscal 2011. The decrease was primarily for lower compensation-
related costs following the reduction in force during June 2011 as well as a reduction in stock
compensation expense related to the termination of our former CEO. Partially offsetting these decreases
were additional costs incurred to hire our new CEO and search fees for our new board member.
Additionally, we spent approximately $275 thousand less on business-related tax expenses.
or 5.0%, in fiscal 2011 compared to fiscal 2010 primarily as a result of a $760 thousand decrease in stock
compensation expense from fully vested options as well as a $575 thousand decrease in the estimated
liability for our fiscal 2011 performance bonus compared to the prior year. We also incurred approximately
$400 thousand additional expense during fiscal 2011 to obtain and protect our patents.
year. The fiscal 2012 loss was for a proportional write down of the debt discount and debt issuance costs
related to a $4.2 million payment to Deerfield. The fiscal 2011 loss resulted from the May 2011 Deerfield
debt modification. A summary of the loss on prepayment of long-term debt, net related to the modification
of the Deerfield credit facilities in May 2011 and Interest Expense are reported in
development spending since inception. As of June 30, 2012, we had an accumulated deficit of
$570.7 million. We had net losses of $23.6 million, $56.3 million and $77.6 million for the years ended
June 30, 2012, 2011 and 2010, respectively.
received under our collaboration and out-licensing transactions, from the issuance and sale of equity
securities and through debt provided by our credit facilities. For example, we received net proceeds of
approximately $56.1 million in February 2012 from an underwritten public offering of our common stock
including the following payments under our collaborations:
foreseeable future, we will continue to utilize existing cash, cash equivalents and marketable securities,
and will continue to depend on funds provided from the sources mentioned above, which may not be
available or forthcoming.
inception of the MEK162 program, as discussed in
Balance Sheet as co-development liability for this obligation.
enable us to continue to fund operations in the normal course of business for at least the next 12 months.
Because sufficient funds may not be available to us when needed from existing collaborations, we expect
that we will be required to continue to fund our operations in part through the sale of debt or equity
securities and through licensing select programs that include up-front and/or milestone payments.
is subject to many risks and uncertainties and, even if we are successful, future equity issuances would
result in dilution to our existing stockholders. We also may not successfully consummate new
collaborations that provide for additional up-front fees or milestone payments or we may not earn
milestone payments under such collaborations when anticipated or at all. Our ability to realize milestone
or royalty payments under existing collaboration agreements and to enter into new partnering
arrangements that generate additional revenue through up-front fees and milestone or royalty payments
is subject to a number of risks, many of which are beyond our control and include the following:
collaborators may not be successful in commercializing drug candidates we create;
milestone, royalty or other payments when anticipated or at all;