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Organization and Description of Business
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9 Months Ended | |
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Sep. 30, 2014
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| Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
| Organization and Description of Business |
1. Organization and Description of Business
Coronado Biosciences, Inc. (the “Company”), incorporated in Delaware on June 28, 2006 (date of inception), is a biopharmaceutical company involved in the development of novel immunotherapy agents for the treatment of autoimmune diseases and cancer, namely CNDO-201 or Trichuris suis ova (“TSO”) and CNDO-109.
The Company is also actively identifying, evaluating and pursuing opportunities to in-license, acquire or invest in pharmaceutical and biotechnology products, technologies and/or companies. The scope of these activities is broad and may from time to time include financing existing or later-acquired products, technologies or companies through partnerships, joint ventures, direct financings, and/or public or private spin-outs. The Company has begun to diversify its product base while continuing to progress and evaluate the CNDO-201 and CNDO-109 clinical programs.
As of September 30, 2014, the Company has six wholly owned subsidiaries: Innmune Limited, Coronado SO Co., Inc., Cyprium Inc., Altamira Bio Inc. formerly TSO Development Corporation, Inc., Journey Medical Corporation and CB Pharma Acquisition Corp.
Recent 2014 Developments
On March 17, 2014, the Company made a $250,000 investment in a third party medical device company developing a laser device to treat migraine headaches. The investment represents a 35% ownership position in this company. The Company elected the fair value option and recorded this investment in long-term investment, at fair value in its Unaudited Condensed Consolidated Balance Sheets as of September 30, 2014 (See Note 8).
Also on March 17, 2014, the Company provided a $50,000 bridge loan to a third party emerging specialty pharmaceutical company developing, marketing and distributing Epilepsy drugs. The bridge loan was due on June 16, 2014, accrues interest at a rate of 8% and is secured by the third party’s assets. As of September 30, 2014, the bridge loan remained outstanding and the Company believes the loan is collectable since the assets securing the loan are believed to be worth more than the carrying amount of the loan. The Company recorded this bridge loan in short-term investment in its Unaudited Condensed Consolidated Balance Sheets as of September 30, 2014.
On April 18, 2014, the Company paid $243,000 to acquire an option to purchase (“Option”) the exclusive rights to a pharmaceutical product from a third party and on August 12, 2014, the Company paid $50,000 to extend the Option for a total purchase price of $293,000. On September 30, 2014, the Option expired and the Company chose not to exercise the Option. Therefore, in connection with the expiration of the Option, the Company realized a loss of $293,000 which is recorded in change in fair value of short-term investment in the Unaudited Condensed Consolidated Statements of Operations during the three and nine months ended September 30, 2014. (See Note 8).
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