Pharmos Corporation Reports First Quarter 2011 Results

April 28, 2011

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.



Consolidated Statements of Operations


                                          Three months ended
                                              March 31,

                                           2011                2010
      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
      - basic and diluted            58,994,984          58,210,866

Select Consolidated Balance Sheet Data

                                               December 31,
                              March 31, 2011       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

SOURCE Pharmos Corporation

Source: newswire

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