Company profile

Ticker
ARPO
Exchange
CEO
Joseph H. Gardner
Employees
Incorporated in
Location
Fiscal year end
Former names
Zeta Acquisition Corp Ii
SEC CIK

ARPO stock data

(
)

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

7 Nov 19
13 Nov 19
31 Dec 19

News

Company financial data Financial data

Quarter (USD) Sep 19 Jun 19 Mar 19 Dec 18
Revenue 2.14K
Net income -4.65M -5.68M -8.49M -8.52M
Diluted EPS -0.11 -0.14 -0.21 -0.21
Net profit margin -397322%
Operating income -4.97M -5.98M -8.84M -8.87M
Net change in cash -4.77M -5.27M -9.19M -6.19M
Cash on hand 43.39M 48.16M 53.42M 62.61M
Annual (USD) Dec 18 Dec 17 Dec 16 Dec 15
Revenue 20.16M
Net income -10.4M -21.4M -39.43K -17.07M
Diluted EPS -0.31 -1.03 -24.52 -0.01
Net profit margin -51.58%
Operating income -11.18M -21.39M -29.49K -17.49M
Net change in cash 42.35M 18.65M -3.53M 5.14M
Cash on hand 62.61M 20.26M 1.61M 5.14M

Financial data from company earnings reports

Financial report summary

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Competition
GenentechRoche
Risks
  • We have incurred significant losses since inception and anticipate that we will continue to incur significant losses for the foreseeable future and may never achieve or maintain profitability.
  • We will require substantial additional financing. A failure to obtain this necessary capital when needed could force us to delay, limit, reduce or terminate our product development or commercialization efforts.
  • Our corporate restructuring and the associated headcount reduction may not result in anticipated savings, could result in total costs and expenses that are greater than expected and could disrupt our business.
  • We cannot assure you that our exploration of strategic alternatives will result in a transaction or that any such transaction would be successful, and the process of exploring strategic alternatives or its conclusion could adversely impact our business and our stock price.
  • Raising additional capital may cause dilution to our existing stockholders, restrict our operations or require us to relinquish rights to product candidates on unfavorable terms to us.
  • Our limited operating history may make it difficult for you to evaluate the success of our business to date and to assess our future viability.
  • We depend heavily on the success of our lead product candidate, AKB-9778. Even if we obtain favorable clinical results, we may not be able to obtain regulatory approval for, or successfully commercialize, AKB-9778.
  • We have not obtained agreement with the FDA, EMA or other regulatory authorities on the design of our development programs.
  • We may find it difficult to enroll patients in our clinical trials, which could delay or prevent clinical trials of our product candidates.
  • We may not be able to comply with requirements of foreign jurisdictions in conducting trials outside of the United States. In addition, we may not be able to obtain regulatory approval in foreign jurisdictions.
  • Clinical drug development is a lengthy and expensive process with an uncertain outcome, and positive results from preclinical studies or earlier stage clinical trials are not necessarily predictive of the results of our future clinical trials of AKB-9778. If we cannot replicate the positive results from preclinical studies or earlier stage clinical trials in subsequent clinical trials, we may be unable to successfully develop, obtain regulatory approval for and commercialize our product candidates.
  • We may experience delays in the planned clinical development program for AKB-9778, and we do not know whether planned clinical trials will begin on time, need to be redesigned, enroll patients on time or be completed on schedule, if at all.
  • Even if we receive regulatory approval for our product candidates, such products will be subject to ongoing regulatory review, which may result in significant additional expense. Additionally, our product candidates, if approved, could be subject to labeling and other restrictions, and we may be subject to penalties if we fail to comply with regulatory requirements or experience unanticipated problems with our products.
  • We rely on third parties to conduct preclinical studies and clinical trials for our product candidates, and if they do not properly and successfully perform their obligations to us, we may not be able to obtain regulatory approvals for our product candidates.
  • We intend to rely on third parties to conduct some or all aspects of our product manufacturing, and these third parties may not perform satisfactorily.
  • If we are unable to manufacture our product candidates in sufficient quantities, at sufficient yields, we may experience delays in product development, clinical trials, regulatory approval and commercial distribution.
  • We may not be successful in establishing and maintaining strategic collaborations, which could adversely affect our ability to develop and commercialize our product candidates, negatively impacting our operating results.
  • If our efforts to protect our proprietary technologies are not adequate, we may not be able to compete effectively in our market.
  • Our patents covering one or more of our products or product candidates could be found invalid or unenforceable if challenged.
  • Our reliance on third parties requires us to share our trade secrets, which increases the possibility that a competitor will discover them or that our trade secrets will be misappropriated or disclosed.
  • Third-party claims of intellectual property infringement may be costly and time consuming and may delay or harm our drug discovery and development efforts.
  • We may become involved in lawsuits to protect or enforce our patents or other intellectual property, which could be expensive, time consuming and unsuccessful.
  • Obtaining and maintaining our patent protection depends on compliance with various procedural, document submission, fee payment and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements.
  • We may be subject to claims that our employees, consultants or independent contractors have wrongfully used or disclosed confidential information of third parties.
  • We may not be able to protect our intellectual property rights throughout the world.
  • Our future commercial success depends upon attaining significant market acceptance of our product candidates, if approved, among physicians, patients, third-party payors and others in the medical community.
  • If we are unable to establish sales, marketing and distribution capabilities or to enter into agreements with third parties to market and sell our product candidates, we may not be successful in commercializing our product candidates if and when they are approved.
  • Coverage and reimbursement may be limited or unavailable in certain market segments for any approved products, which could make it difficult for us to sell our products profitably.
  • Price controls may be imposed, which may adversely affect our future profitability.
  • The impact of recent healthcare reform and other changes in the healthcare industry and in healthcare spending is currently unknown and may adversely affect our business model.
  • Our product candidates may cause undesirable side effects or have other properties that delay or prevent their regulatory approval or limit their commercial potential.
  • If we fail to attract and keep senior management and key scientific personnel, we may be unable to successfully develop our product candidates, conduct our clinical trials and commercialize our products.
  • Our employees, independent contractors, principal investigators, contract research organizations, consultants and vendors may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements and insider trading.
  • We may encounter difficulties in managing our growth and expanding our operations successfully.
  • If product liability lawsuits are brought against us, we may incur substantial liabilities and may be required to limit commercialization of our product candidates.
  • If we fail to comply with environmental, health and safety laws and regulations, we could become subject to fines or penalties or incur costs that could harm our business.
  • We face risks arising from the results of the public referendum held in United Kingdom and its membership in the European Union.
  • We are eligible to be treated as an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our common stock less attractive to investors.
  • FINRA sales practice requirements may limit a stockholder’s ability to buy and sell our stock.
  • The market price of our common stock may be highly volatile, and may be influenced by numerous factors, some of which are beyond our control.
  • Our principal stockholders and management own a significant percentage of our stock and will be able to exercise significant influence over matters subject to stockholder approval.
  • Because we became a reporting company under the Exchange Act by means other than a traditional underwritten initial public offering, we may not be able to attract the attention of research analysts at major brokerage firms.
  • The resale of shares covered by a registration statement could adversely affect the market price of our common stock in the public market, should one develop, which result would in turn negatively affect our ability to raise additional equity capital.
  • Issuance of stock to fund our operations may dilute your investment and reduce your equity interest.
  • As a result of becoming a public company, we are incurring increased costs and our management devotes substantial time to public company compliance programs.
  • Provisions in our charter documents and Delaware law may have anti-takeover effects that could discourage an acquisition of us by others, even if an acquisition would be beneficial to our stockholders, and may prevent attempts by our stockholders to replace or remove our current management.
  • Our ability to use net operating losses to offset future taxable income may be subject to certain limitations.
  • Because we do not anticipate paying any cash dividends on our capital stock in the foreseeable future, capital appreciation, if any, will be your sole source of gain.
  • On December 22, 2017, The Tax Cuts and Jobs Act (the “2017 Tax Act”) was enacted and could have a material impact on our current and future income tax provision and disclosures.
  • An active trading market for our common stock may not develop or be sustainable. If an active trading market does not develop, investors may not be able to resell their shares at or above the purchase price and our ability to raise capital in the future may be impaired.
Management Discussion
  • License revenue for the three months ended September 30, 2018 reflects $18.7 million of the $20.0 million upfront June 2018 license agreement payment from Gossamer along with revenue for certain transition services provided to Gossamer as part of the license agreement. No such license agreement was executed in 2019, nor were any milestones of the Gossamer license agreement achieved in 2019.
  • Research and development expenses for the three months ended September 30, 2019 decreased approximately $1.5 million or 34.6%, compared to the three months ended September 30, 2018. This was the result of decreased spending on AKB-9778, offset by spending related to the Glaucoma clinical trial, which commenced during the second quarter of 2019.
  • General and administrative expenses for the three months ended September 30, 2019, decreased approximately $1.1 million, or 34.1%, compared to the three months ended September 30, 2018. This decrease was primarily attributable to a decrease in employee related expenses of $0.5 million, legal expenses of $0.3 million, stock-based compensation of $0.2 million and general office expenses of $0.1 million.
Content analysis ?
Positive
Negative
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Legalese
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Readability
H.S. sophomore Avg
New words: cohort, conjunctival, Duane, Evercore, exploration, explore, exploring, highest, hyperemia, Ladenburg, Marek, maximizing, mild, Nash, OAG, peaked, pilot, QD, Regina, resigned, running, Thalmann, transient, unmasked, Vice
Removed: amortization, core, Hoffman, improved, principle, Stephen, understand