moving on target
Pharmos Corporation Reports 2001 First Quarter Results Development Programs Gain Momentum as Revenue Grows 67%
ISELIN, N.J., May 1 /PRNewswire/ -- Pharmos Corporation (Nasdaq: PARS and Nasdaq Europe: PHRM) today reported financial results for the first quarter ended March 31, 2001. During the quarter, the Company significantly advanced key clinical and pre-clinical development programs, maintained a solid cash position, and enjoyed revenue growth of approximately 67% over the comparable period in 2000.
For the 2001 first quarter, Pharmos reported a net loss of $2,750,103, or $.05 per share, on revenues of $1,105,058, compared to a net loss of $1,895,144, or $.04 per share, on revenues of $663,580 for the comparable period in 2000. The increase in net loss is due primarily to increased research and development and selling, general and administrative expenses. Research and development expenses rose approximately 46% in connection with the commencement of the dexanabinol pivotal clinical trial for severe traumatic brain injury and continued research on other non-psychotropic cannabinoid derivatives for various central nervous system (CNS) and inflammation-based conditions. Selling, general and administrative expenses increased approximately 19%, primarily due to higher staffing levels to support increased research and development activities. The Company's revenue growth is attributable primarily to increased sales and market shares of Lotemax® and Alrex®. Cash and cash equivalents, including restricted cash, equaled $24,337,531 at the end of the 2001 first quarter.
``Our first quarter results reflect the strong commitment we have made to position the Company as a leader in the development of therapeutics for CNS and inflammation-based disorders,'' said Haim Aviv, Ph.D., Pharmos Chairman and CEO. ``We are investing resources to speed the development of earlier stage cannabinoid derivatives and at the same time are strategically managing our cash position to ensure the uninterrupted continuation of our pivotal trial of dexanabinol for traumatic brain injury.''
During the 2001 first quarter, Pharmos achieved a major milestone in its CNS program. In January the Company commenced enrollment in its pivotal Phase III trial for dexanabinol in traumatic brain injury. Patient enrollment is underway in about 25 centers; a total of approximately 40 centers within 8 European countries and Israel are anticipated to participate in the study. The trial is expected to commence in the U.S. later this year.
Dr. Aviv continued, ``We are pleased that the operating expenses necessary to continue our work in CNS disorders are increasingly offset by growing product revenues from Lotemax and Alrex.'' Lotemax and Alrex are products from the Company's more mature technology platform for ophthalmic drugs and are marketed by the Company's ophthalmic program marketing partner, Bausch & Lomb Pharmaceuticals, a division of Bausch & Lomb Incorporated. The third product from this partnership, LE-T, is advancing through its final clinical trial.
Pharmos also progressed in the pre-clinical development of cannabinoid derivatives for other CNS and anti-inflammatory indications. The Company is in advanced pre-clinical studies of several compounds for stroke and expects to make a decision later this year as to the appropriate drug candidate to take into clinical trials. In earlier stage pre-clinical testing, the Company made advances in its studies of cannabinoid derivatives as treatments for neuropathic pain and multiple sclerosis, and further expanded its considerable library of cannabinoid derivative compounds targeting other neurological and inflammation-based disorders. The Company plans to continue to move forward in these earlier stage studies and to identify a clinical candidate for a third indication sometime next year.
Pharmos Corporation discovers and develops novel therapeutics to treat a range of inflammatory and neurological disorders, such as traumatic brain injury and stroke. The Company has an extensive portfolio of drug candidates under development, as well as discovery, pre-clinical and clinical capabilities. |
