CombinatoRx 2Q loss grows on higher research costs

For the quarter, CombinatoRx lost $17.6 million, or 51 cents per share, compared with a loss of $10.5 million, or 36 cents per share a year earlier. The company's revenue fell to $3.4 million from $5.3 million, and research and development costs rose to $17.5 million from $12.7 million.

On average, analysts were expecting a loss of 44 cents per share and $4 million in revenue, according to Thomson Financial.

CombinatoRx is a development-stage company and does not have any products on the market. Its revenue comes from payments by development partners, and CombinatoRx said several one-time payments increased its revenue in last year's second quarter.

Those included the extension of its development partnership with medical device maker Angiotech Pharmaceuticals Inc. and a payment from Fovea Pharmaceuticals SA.

For the full year, CombinatoRx maintained a forecast of $15 million to $20 million in revenue. Analysts expect $16.4 million.

The company's most advanced drug candidate is Synavive, which is being tested as a treatment for osteoarthritis of the knee. CombinatoRx said it has completed enrollment in a midstage clinical trial, and plans to release data in October.

CombinatoRx is also conducting clinical tests of CRx-401, a treatment for type 2 diabetes, and two drug candidates designed to treat skin conditions.

In morning trading, its shares rose 3 cents to $4.33.