Friday May 5, 8:36 am Eastern Time
Company Press Release
SOURCE: Pharmos Corporation
Pharmos Reports Doubling of Revenues, Improved Balance Sheet
ISELIN, N.J., May 5 /PRNewswire/ -- Pharmos Corporation (Nasdaq: PARS; Easdaq: PHRM) reported today that its revenues in the first quarter ended March 31, 2000 increased 100% to $663,580 from $332,377 in the prior year first quarter. The increase in revenues reflects market share gains of its two ophthalmic products, Lotemax© and Alrex©, and additional purchases of Alrex by wholesalers and distributors in advance of a price increase effective April 2000. According to IMS Health statistics, Lotemax captured 10.1% of new prescriptions by ophthalmologists in its market during March 2000, while Alrex attained a 9.3% share of its market, compared to market shares for Lotemax and Alrex of 5.2% and 6.2%, respectively, at the end of March 1999.
Net loss for the 2000 first quarter was $1,895,144, or $.04 per share, compared to a net loss of $1,342,577, or $.03 per share in the prior year first quarter. The increase in net loss occurred, despite the growth in sales, due to higher sampling, royalty, and licensing costs, and additional R&D expenses relating to the Company's preparations for the commencement of its pivotal study of dexanabinol for traumatic brain injury and to an increased level of activity in the Company's discovery program and pre- clinical testing of new compounds for central nervous system and cancer indications. The increased net loss is also attributable to a higher level of G&A expenses, mainly due to higher employee costs, including additional staffing at its Iselin, NJ headquarters and in its R&D site in Rehovot, Israel.
Chairman and CEO Haim Aviv commented on the Company's R&D strategy: ``Our vastly improved financial situation has given us the strength to progress more quickly with the development of our discovery pipeline while we execute our clinical development plan for dexanabinol. We intend to modestly add to our in-house capabilities while we fully exploit opportunities to broaden and deepen our product pipeline.''
During the first quarter 2000, the Company raised $14.3 million from the sale of its common equity, in a series of transactions ranging in price from $2.375 to $12.50, including issuances under its equity line of credit. In addition, $4.0 million was received as a result of exercises of previously outstanding warrants and options. At March 31, 2000, Pharmos reported cash and cash equivalents of $19.1 million, a significant increase from the $2.9 million reported at December 31, 1999. ``Improved market conditions, and increased investor interest in our stock, provided us an excellent opportunity to add significantly to Pharmos' financial resources,'' commented Robert W. Cook, the Company's Vice President Finance and Chief Financial Officer. ``We have a much stronger balance sheet today than we had only a few months ago.'' The Company believes that existing cash and cash equivalents combined with anticipated cash inflows from the proceeds from sales of Lotemax and Alrex, along with investment income, R&D grants and the availability of the equity line of credit will be sufficient to support the Company's continuing operations for the foreseeable future.
Development Update
Pharmos is completing preparations to commence a pivotal study of dexanabinol in Europe for traumatic brain injury. The trial is expected to enroll approximately 300 patients in thirty trauma centers located in eight countries, and should begin by late summer. Pharmos is coordinating its activities with the European Brain Injury Association (EBIC) and will soon select an international contract research organization to assist in various aspects of the study. The development program for the third ophthalmic product in its partnership with Bausch & Lomb (NYSE: BOL - news), LE-T, also continues, and is expected to lead to an NDA filing this year. Preliminary work relating to the final clinical study has been completed; the study is expected to commence during the second quarter 2000. Finally, review on the submission of the Company's 0.5% ophthalmic suspension Loterox(TM) in the UK is proceeding satisfactorily, and the Company expects an approval in the UK this year and in other European countries soon thereafter. |
