Organization and Description of Business
|9 Months Ended|
Sep. 30, 2018
|Accounting Policies [Abstract]|
|Organization and Description of Business||
1. Organization and Description of Business
Organization and Business
ContraFect Corporation (the “Company”) is a clinical-stage biotechnology company focused on protein and antibody therapeutic products for life-threatening infectious diseases, particularly those treated in hospital-based settings. The Company intends to address multi-drug resistant infections using its therapeutic product candidates from its lysin and monoclonal antibody platforms to target conserved regions of either bacteria or viruses. The Company’s most advanced product candidate is CF-301 (exebacase), a lysin which is being studied as a treatment of Staph aureus bacteremia, including endocarditis in a Phase 2 clinical trial. The Company is also focused on expanding its gram-negative lysin pipeline through the discovery and development of lysins that target antibiotic-resistant gram-negative pathogens which are considered to be urgent or serious threats to global health by the U.S. Center for Disease Control or critical priorities by the World Health Organization. Beyond the lysin programs, the Company is exploring therapies using other phage-derived lytic agents, anti-microbial peptides and monoclonal antibodies.
On August 3, 2018, the Company completed an underwritten public offering of 5,750,000 shares of its common stock, including shares sold pursuant to the fully exercised overallotment option granted to the underwriters in connection with the offering, at a public offering price of $2.00 per share, resulting in net proceeds to the Company of approximately $10.4 million after underwriting discounts and commissions and offering expenses payable by the Company.
The Company has incurred losses from operations since inception as a research and development organization and has relied on its ability to fund its operations primarily through public and private debt and equity financings. Management believes its cash, cash equivalents and marketable securities balances as of September 30, 2018 will be sufficient to fund operations into the first quarter of 2020 and expects operating losses and negative cash flows to continue at more significant levels in the future as it continues its clinical trials. Transition to profitability is dependent upon the successful development, approval, and commercialization of its product candidates and achieving a level of revenues adequate to support the Company’s cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional capital. Management intends to fund future operations through additional public or private equity financings, and may seek additional capital through arrangements with strategic partners or from other sources. There can be no assurances that such financing will be available to the Company on satisfactory terms, or at all.
The entire disclosure for the general note to the financial statements for the reporting entity which may include, descriptions of the basis of presentation, business description, significant accounting policies, consolidations, reclassifications, new pronouncements not yet adopted and changes in accounting principles.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef