ISELIN, N.J., Nov. 14 /PRNewswire/ -- Pharmos Corporation (Nasdaq: PARS and Easdaq: PHRM) reported today revenues in the third quarter ended September 30, 2000 increased 111% to $1,761,735, compared to revenues in the prior year third quarter. As previously announced, revenue growth during the third quarter resulted primarily from increased sales of the Company's two approved ophthalmic products, Lotemax® and Alrex®. The Company's net loss in the third quarter ended September 30, 2000 increased to $1,531,159, or $0.03 per share, from $972,285, or $0.02 per share, in the prior year third quarter.
During the quarter, R&D costs increased primarily as a result of a higher level of activity in the Company's second generation cannabinoid program and increased expenses relating to its upcoming clinical study of dexanabinol for traumatic brain injury. General and administrative expenses increased due to higher staff expenses and increased investor relations activity. Included as interest expense in the quarter was a non-cash charge of $399,585, representing amortization of a beneficial conversion feature and debt discount in connection with an $8 million issuance of convertible debt in September 2000, in addition to accrued interest on the debt through September 30th. Current accounting standards require the Company to determine the value of a beneficial conversion feature in the convertible debt, and to amortize that value from the closing date until the earliest date upon which investors have the right to convert the debt into common shares. Net loss for the third quarter excluding amortization of the beneficial conversion feature and other issuance costs was $1,087,984, or $0.02 per share. The Company's cash on-hand, including $4 million in restricted cash, at September 30, 2000 was $27.7 million. In September 2000, the Company raised a total of $11 million in gross proceeds through a private transaction consisting of an $8 million convertible debt issue and $3 million in common stock.
``The third quarter was a very productive and progressive period for Pharmos,'' said Dr. Haim Aviv, Chairman and CEO. ``Our strengthened cash position enables us to continue the final development of dexanabinol for traumatic brain injury and to accelerate our second generation cannabinoid development for other indications. We are already beginning to enjoy some success in our Generation II program as witnessed by our recent announcement of positive results of studies involving dexanabinol and two new compounds in stroke models.''
Revenues for the nine months ended September 30, 2000 grew approximately 90% to $3,840,152 from $2,024,329 in the prior year period. Net loss for the nine months ended September 30, 2000 increased to $4,276,235, or $0.08 per share, compared to a net loss of $3,308,461, or $0.08 per share, in the prior year period. Net loss for the nine months ended September 30, 2000 excluding amortization of the beneficial conversion feature and other issuance costs was $3,833,060, or $0.07 per share. |
