Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Pharmos (PARS) -- Ignore unavailable to you. Want to Upgrade?

To: Tony van Werkhooven who wrote (31)	11/3/1998 9:31:00 AM
From: ADEL 7	Read Replies (2) \| Respond to of 1386

Pharmos Corporation Reports Third Quarter 1998 Results ISELIN, N.J., Nov. 3 /PRNewswire/ -- Pharmos Corporation (Nasdaq: PARS) today reported a net loss of $1,202,144, or $0.03 per share for the third quarter ended September 30, 1998, compared to a net loss of $1,802,497 before an extraordinary gain, or $0.06 per share, in the third quarter of 1997. For the nine month period ended September 30, 1998, Pharmos reported a net loss of $3,535,804, or $.12 per share, compared to a net loss of $6,376,168 before the extraordinary gain, or $.25 per share, for the first nine months of 1997. The Company's improved results in 1998 are the result of the receipt of revenues from product sales following FDA approval of Lotemax(R) and Alrex(R), a reduction in the Company's expense base, and a lower level of clinical activity. Revenue from product sales totaled $90,743 for the third quarter and $983,899 for the nine months of 1998. Third quarter product shipments reflected reorders from wholesalers and distributors subsequent to the June 1998 launch of Lotemax(R) and Alrex(R) and did not reflect actual retail sales of the products. Inventory draw down at wholesalers and distributors is expected to continue during the fourth quarter 1998 until inventory levels reach an equilibrium, after which sales revenue is expected to more closely track the level of retail product sales. Feedback from physicians prescribing Lotemax(R) and Alrex(R) has been excellent. Since the products were launched in June, over 4,400 ophthalmologists have prescribed Alrex(R) and about the same have prescribed Lotemax(R), an increase of over 2,000 ophthalmologists in September alone. Market penetration of Lotemax(R), in terms of new prescriptions written by ophthalmologists, has grown steadily to 3.7% of ophthalmic anti-inflammatory prescriptions at the end of September, while Alrex(R) has attained a 4.6% share of the eye allergy market. In addition, Lotemax(R) has gained a 5% share of the market for prescriptions written by optometrists. "Prescription growth trends are positive and we are optimistic that this trend will continue," commented Robert W. Cook, Pharmos' Vice President -- Finance and Chief Financial Officer. "Nevertheless, we are expecting modest revenues in the fourth quarter, until inventories at wholesalers and distributors reach the point where reorders are needed." Total operating expenses continued to run almost 30% below the levels of 1997, primarily as a result of reduced R&D expenses. In 1998, net R&D expenses have remained significantly below 1997 due to the closure of the Company's R&D facilities in Alachua, Florida at the end of 1997 and a lower level of clinical trial activity. Although R&D expenses are expected to accelerate during the fourth quarter for ongoing dexanabinol and LE-T trials, total R&D expenses for 1998 are expected to finish the year significantly below that of 1997.