InVivo Therapeutics Holdings Corp. (OTC:NVIV) burned through nearly one-fourth of its cash during the first quarter as it adjusted to life as a publicly traded firm.
The Cambridge, Mass.-based startup, which is developing an implantable treatment for acute spinal cord injuries, said it had $6.84 million in cash and current assets as of March 31, down $2.1 million from $8.96 million as of Dec. 31, 2010.
Company officials said rising expenses “associated with with operating as a public company and increases in rent, salary and benefit costs,” as well as research and development efforts, were the primary drivers of the cash spend. For all of 2010, the company burned through just $2.65 million.
InVivo, founded in 2005, has never logged revenues, putting up about $15 million in total losses during its lifetime.
InVivo, which went public in a reverse merger last October, is hoping to begin a clinical study of its polymer scaffold-based spine treatment during the second half of this year.
The company recorded a net loss of $1.27 million during the three months ended March 31, compared to losses of $454,000 during the same period last year.
InVivo’s system uses a biodegradable polymer designed to act as a “synthetic extracellular matrix” to reduce scar formation called astrogliosis. The company has said it will submit its scaffold device alone for FDA clearance. Down the road, it may apply for additional clearances for using the device with anti-inflammatory drugs or stem-cell-based compounds.
