Pars had a financing about a year ago with a convertible debenture. that is mostly converted.
Recently they came with a financing plan. that they have a line of redit of up to 10 Million $ for 18 months. to use at their timing they will give a 7% discount and 10% of shares issues will also get warrants rights at a premium to market price.
There is a good chance tha Pharmos will not need to raise any more money.
Here is why.
They expect tp sign a parnter for Phase 3 study with Dexanabinol and get payment from that.As for timing some time in the next month a short list should be form with final agreement 4-6 month from now.
( They also have a third and final cohort of phase 2 that is 2/3 finished enrolment, so expect that data to be available late Q3 early Q4)
The market for HU 211 another name for Dexanabinol is over Big as for sales it will depend on pricing. right now no treatment exist. There are 350000 to 500,000 patients that will benefif for this indication in USA alone mostly car trauma, expect about same in Europe.
so the market is from 750 million to 1.5 Billion is usa alone.
Possible double that if it get Stroke indication.And double again when marketed in Europe.
Expect them to get 10 to 15 % of sales, and that will be net net.
Since sales of Alrex and Lotemax will cover burn rate by year 2000 this will be profit.
They also are in late phase 3 for Letobra, a combination of alrex and Tobramycin an antibiotic ( eye medication) Small market not blockbuster. The Alrex Lotemax and Le Tobra are done with BOL Boaush and Lomb.
Down the pike the drug by its mechanisme of action can work for IBD(inflamatory bowl disease, in a separate animal study done In Macmaster University in Canada by investigator independent from Pharmos it worket ; a published study, another separate animal study by the USA Army it shows protective against nerve gas .
What I like about this drug, is that different labs , researcher not related to each other found out that it works under its purported mechanisme for different indication....
They are suppose to get an advance on future sales from BOL upon getting NDA application in Europe, expected this year.
If any of this will take place it shoild provide enough cash flow to cover burn rate.
Their Sales of Lotemax and Alrex are growing. Currently they are at 5-6% of new prescription written, they hope to get to 15%.of market share, the combine market for Alrex lotemax is with in range of 180 to
300 million depends on estimates .( Pharmos get 29% from BOL with a net net of 20% ) Alrex is a corticosteroid and the only one with fda approved indication for chronic eye allergy, got very broad indication. Lotemax is basically same but at highe concentration its used is after eye surgery to reduce inflamation. as well as other indications...
They burn rate is 5 million . once exceeded all cash goes into profit. |
