Pharmos Corporation Reports First Quarter 2011 Results
Iselin NJ, April 28, 2011 – Pharmos Corporation (OTCBB: PARS.PK) ISELIN, N.J., April 28, 2011 /PRNewswire/ — Pharmos Corporation (Pink Sheets: PARS) today reported financial results for the first quarter ended March 31, 2011. The Company recorded a net loss of $0.6 million, or $0.01 per share, for the first quarter 2011 compared to a net loss of $0.5 million, or $0.01 per share, in the first quarter 2010.
Research & development expenses for the first quarter increased by $158,788 or 129% from $122,995 in 2010 to $281,783 in 2011. The primary areas include a $70,000 increase in clinical studies and an $115,000 increase in consultant and professional fees which were offset by a $26,000 reduction in various other areas. Consulting and professional fees increased substantially as the Company conducted work in preparation for initiating a proof-of-concept trial in gout patients using S-tofisopam. Clinical fees increased due to costs related to manufacturing capsules needed for this trial. These increases were slightly offset by a reduction of various facility related expenses as the Company continued to reduce overall facility costs.
General and administrative expenses for the first quarter of 2011 decreased by $44,969, or 13%, from $339,314 in 2010 to $294,345 in 2011. The primary reductions were a $15,000 reduction in consultant and professional fees, a $19,000 reduction in salaries and benefits and an $11,000 reduction in various facility related expenses. Accounting fees have decreased as there were higher accounting fees related to the filing of a Regulation statement on Form S-1 in 2010. The decrease in payroll costs in 2011 reflects lower stock compensation costs and the elimination of an administrative position in 2010. The decrease in the facility related expenses were a result of cost savings in various expense categories.
About Pharmos Corporation
Pharmos discovers and develops novel therapeutics to treat a range of indications, including specific diseases of the nervous system such as disorders of the brain-gut axis (IBS), pain/inflammation, and autoimmune disorders. The Company’s lead products are the two enantiomers of tofisopam. S-tofisopam (levotofisopam) is being evaluated for the treatment of gout, but has not yet entered clinical trials in the US. R-tofisopam (dextofisopam) has been developed through Phase 2b for IBS in the US. There is a large unmet need for new therapeutic alternatives for the treatment of IBS, a chronic and sometimes debilitating condition that affects roughly 10-15% of U.S. adults, primarily women. Pharmos is seeking a partnership with another pharmaceutical company to further develop this promising compound for IBS. The Company also has a proprietary technology platform focusing on discovery and development of synthetic cannabinoid compounds, with a focus on CB2 receptor-selective agonists. Various CB2-selective compounds from Pharmos’s pipeline have been the subject of completed preclinical studies targeting pain, multiple sclerosis, rheumatoid arthritis, inflammatory bowel disease, and other disorders. These are available for licensing/partnering.
Safe Harbor Statement
Statements made in this press release related to the business outlook and future financial performance of Pharmos, to the prospective market penetration of its drug products, to the development and commercialization of its pipeline products and to its expectations in connection with any future event, condition, performance or other matter, are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause results to differ materially from those set forth in these statements. Additional economic, competitive, governmental, technological, marketing and other factors identified in Pharmos’ filings with the Securities and Exchange Commission could affect such results.
Contacts
Pharmos U.S.
S. Colin Neill, President & CFO
(732) 452-9556
Consolidated Statements of Operations
(Unaudited)
| Three months ended
March 31, |
||||||
| 2011 | 2010 | |||||
| Expenses | ||||||
| Research and development | $ | 281,783 | $ | 122,995 | ||
| General and administrative | 294,345 | 339,314 | ||||
| Depreciation and amortization | 626 | 465 | ||||
| Total operating expenses | 576,754 | 462,774 | ||||
| Loss from operations | (576,754) | (462,774) | ||||
| Other (expense) income | ||||||
| Interest income | 96 | 287 | ||||
| Interest expense | (26,469) | (28,374) | ||||
| Other income (expense) | – | (516) | ||||
| Other expense | (26,373) | (28,603) | ||||
| Net loss | ($603,127) | ($491,377) | ||||
| Net loss per share | ||||||
| – basic and diluted | ($0.01) | ($0.01) | ||||
| Weighted average shares outstanding | ||||||
| – basic and diluted | 58,994,984 | 58,210,866 | ||||
Select Consolidated Balance Sheet Data
| March 31, 2011 | December 31, 2010 | ||
| Cash and cash equivalents | $2,777,520 | $3,139,347 | |
| Working capital | $2,502,379 | $3,015,068 | |
| Shareholder’s equity | $1,507,366 | $2,020,681 | |