Last updated on April 16, 2014 at 1:21 EDT

Pharmos Corporation Reports First Quarter 2012 Results

April 16, 2012

ISELIN, N.J., April 16, 2012 /PRNewswire/ — Pharmos Corporation (OTC-PINK: PARS) today reported financial results for the first quarter ended March 31, 2012. The Company recorded a net loss of $0.6 million, or $(0.01) per share, for the first quarter 2012 compared to a net loss of $0.6 million, or $(0.01) per share, in the first quarter 2011.

The Company is currently conducting a clinical trial at the Duke Clinical Research Unit to evaluate levotofisopam as a treatment for gout. As of April 16, 2012, 13 patients have completed treatment. Serum urate concentration decreased in all patients, with a mean reduction of more than 45%. In addition, fractional excretion of urate increased, confirming the compound’s mechanism of action as enhancing urate excretion.

The Phase 2a trial is expected to be completed in May 2012 and the Company’s strategy is to seek a partner for the further development of levotofisopam.

Research & development expenses for the first quarter increased by $8,880, or 3%, from $281,783 in 2011 to $290,663 in 2012. The primary areas include a $149,000 increase in clinical study fees which were offset by a $138,000 reduction in consultant and professional fees and a $2,000 reduction in various other areas. Clinical study fees increased as the clinical trial using levotofisopam to treat gout commenced in January 2012 and fees were incurred on completed patients. Consulting and professional fees have decreased as the Company filed the IND for the gout trial in 2011 while in 2012 there were normal expenses in this area.

General and administrative expenses for the first quarter of 2012 decreased by $34,288, or 12%, from $294,345 in 2011 to $260,057 in 2012. The primary reductions were a $15,000 reduction in consultant and professional fees, a $6,000 reduction in salaries and benefits and a $13,000 reduction in various other areas. Professional fees have decreased as there were reduced legal fees incurred. The decrease in payroll costs in 2012 reflects lower stock based compensation. There was also a reduction of various facility related expenses as the Company continued to reduce and manage overhead.

At March 31, 2012, the Company had approximately $1.0 million in cash and cash equivalents which is expected to be sufficient to fund current operations, through at least July of 2012 including the gout trial.

About Pharmos Corporation

Pharmos discovers and develops novel therapeutics to treat a range of metabolic and nervous system disorders, including gout, disorders of the brain-gut axis (e.g., Irritable Bowel Syndrome), pain/inflammation, and autoimmune disorders. The Company’s lead products are the two enantiomers of tofisopam. S-tofisopam (levotofisopam) is being investigated for the treatment of gout. R-tofisopam (dextofisopam) has been developed through Phase 2b for the treatment of IBS. There is a large unmet need for therapeutic alternatives for the treatment of IBS, a chronic and often debilitating condition affecting roughly 10-15% of U.S. adults, primarily women. Pharmos is seeking partnerships to further develop dextofisopam for IBS and to advance the development of levotofisopam for gout. The Company also has a proprietary technology platform centering 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 successfully completed preclinical studies targeting pain, multiple sclerosis, rheumatoid arthritis, inflammatory bowel disease, and other disorders. These compounds 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.

    Consolidated Statements of Operations

                                                  Three months ended
                                                       March 31,

                                              2012                     2011
                                              ----                     ----
    Expenses                              $290,663                 $281,783
    Research and
    General and
     administrative                        260,057                          294,345
    Depreciation and
     amortization                              616                              626
                                               ---                              ---
    Total operating
     expenses                                            551,336                       576,754
                                                         -------                       -------

    Loss from
     operations                                         (551,336)                     (576,754)
                                                        --------                      --------

    Other (expense)
    Interest income                                           31                            96
    Interest expense                                     (25,000)                      (26,469)
    Other expense                                        (24,969)                      (26,373)
                                                         -------                       -------

    Net loss                                           ($576,305)                    ($603,127)
                                                       =========                     =========

    Net loss per share
    -basic and
     diluted                                              ($0.01)                       ($0.01)

    Weighted average
    -basic and
     diluted                                          59,589,756                    58,994,984
    Select Consolidated
     Balance Sheet Data

                              March 31,2012          December 31,2011
                              -------------          ----------------
    Cash and cash equivalents            $1,016,483               $1,535,137
    Working capital                       ($192,676)                $296,654
    Shareholders' equity                  ($188,799)                $301,147

SOURCE Pharmos Corporation

Source: PR Newswire