Pharmos Corporation Reports 2011 Third Quarter Results
ISELIN, N.J., Oct. 31, 2011 /PRNewswire/ -- Pharmos Corporation (OTC-PINK: PARS) today reported financial results for the third quarter and nine-month period ended September 30, 2011. These results are included in the Company's Quarterly Report on Form 10-Q which has been filed with the SEC.
Third Quarter Ended September 30, 2011
The Company recorded a net loss of $0.4 million, or $0.01 per share, for the third quarter 2011 compared to a net loss of $0.5 million, or $0.01 per share, in the third quarter 2010.
During the quarter, the Company successfully completed a non-human primate toxicology study. The Company now plans to conduct a proof-of-concept clinical trial (the Gout trial) in the US in Gout patients using Levotofisopam. This trial, expected to begin in November, follows two ex-US Phase 1 clinical studies that were completed by Vela Pharmaceuticals (merged with Pharmos in October 2006). In these studies, conducted in healthy volunteers in the United Kingdom and The Netherlands, Levotofisopam treatment was generally well tolerated and was associated with a large and rapid reduction in mean uric acid values.
Research & development expenses for the third quarter increased by $21,540, or 14%, from $153,806 in 2010 to $175,346 in 2011. The primary areas include an $81,000 increase in clinical study fees which were offset by a $28,000 reduction in consultant and professional fees and a $31,000 reduction in various other areas. Clinical study fees increased due to costs related to conducting a non-human primate toxicology study needed for the Gout trial. Consulting and professional fees have decreased as the Company conducted work in the preparation of the Investigational New Drug (IND) application for the Gout trial in 2010 while in 2011 there were lower expenses for the quarter since the trial has not started yet. There was also a reduction of various facility related expenses as the Company continued to reduce overall facility costs.
General and administrative expenses for the third quarter of 2011 decreased by $51,332, or 17%, from $295,936 in 2010 to $244,604 in 2011. The primary reductions were a $14,000 reduction in consultant and professional fees, a $20,000 reduction in salaries and benefits and a $17,000 reduction in various other areas. Professional fees have decreased as there were business development fees in 2010 related to a possible reverse merger candidate which eventually was not pursued. The decrease in payroll costs in 2011 reflects lower stock compensation costs and the elimination of an administrative position in 2010. There was also a reduction of various facility related expenses as the Company continued to reduce overall facility costs.
At September 30, 2011, the Company had approximately $1.8 million in cash and cash equivalents which is expected to be sufficient to fund current operations, including the Gout trial through at least April 30, 2012.
Nine-months Ended September 30, 2011
For the nine months ended September 30, 2011, Pharmos recorded a net loss of $1.5 million, or $0.03 per share compared to a net loss of $1.4 million, or $0.02 per share for the nine months ended September 30, 2010.
Research & development expenses for the first nine months of 2011 increased by $291,436, or 77%, from $380,164 in 2010 to $671,600 in 2011. The primary areas include a $223,000 increase in clinical study fees and a $139,000 increase in consultant and professional fees which were offset by a $71,000 reduction in various other areas. Consulting and professional fees increased substantially as the Company conducted work in preparation for initiating a proof-of-concept trial in Gout patients using Levotofisopam in the first half of the year. Clinical study fees increased due to costs related to manufacturing capsules needed for this trial and costs related to conducting a non-human primate toxicology study. These increases were offset by a reduction of various facility related expenses as the Company continued to reduce overall facility costs.
General and administrative expenses for the first nine months of 2011 decreased by $137,379, or 15%, from $935,742 in 2010 to $798,363 in 2011. The primary reductions were a $62,000 reduction in consultant and professional fees, a $50,000 reduction in salaries and benefits and a $25,000 reduction in various facility related expenses. Accounting fees have decreased as there were higher accounting fees related to the filing of a Registration statement on Form S-1 in 2010. Also professional fees have decreased as there were business development fees in 2010 related to a possible reverse merger candidate which eventually was not pursued. The decrease in payroll costs in 2011 reflects lower stock compensation costs and the elimination of an administrative position in 2010. The decrease in the facility related expenses were a reduction of various facility related expenses as the Company continued to reduce overall facility costs.
About Pharmos Corporation
Pharmos discovers and develops novel therapeutics to treat a range of indications, including specific diseases of the nervous system such as disorders of the brain-gut axis (IBS), pain/inflammation, and autoimmune disorders. The Company's lead products are the two enantiomers of tofisopam. S-tofisopam (levotofisopam) is being evaluated for the treatment of Gout and will shortly enter into a clinical trial in the US. R-tofisopam (dextofisopam) has been developed through Phase 2b for IBS in the US. There is a large unmet need for new therapeutic alternatives for the treatment of IBS, a chronic and sometimes debilitating condition that affects roughly 10-15% of U.S. adults, primarily women. Pharmos is seeking a partnership with another pharmaceutical company to further develop this promising compound for IBS. The Company also has a proprietary technology platform focusing on discovery and development of synthetic cannabinoid compounds, with a focus on CB2 receptor-selective agonists. Various CB2-selective compounds from Pharmos' pipeline have been the subject of completed preclinical studies targeting pain, multiple sclerosis, rheumatoid arthritis, inflammatory bowel disease, and other disorders. These are available for licensing/partnering.