Pro-Pharmaceuticals third quarter net loss decreases to $1,899,000

Pro-Pharmaceuticals, Inc. (OTC: PRWP), a developer of therapeutics that target Galectin receptors to treat cancer and fibrosis, today reported its financial results for the third quarter and the nine months ended September 30, 2010. These results are included in the Company's Quarterly Report on Form 10-Q, which has been filed with the SEC.

“In addition, we were recently awarded approximately $489,000 for two federal grants: one for DAVANAT®, our anti-cancer compound and a second grant for our GR-Series of anti-fibrosis and cirrhosis compounds, which have reversed liver fibrosis/cirrhosis in pre-clinical studies”

"Our goals are to commercialize DAVANAT® as soon as possible and to accelerate development of our liver fibrosis compounds," said Theodore Zucconi, Ph.D., Chief Executive Officer, Pro-Pharmaceuticals. "We recently shipped our first commercial order of DAVANAT® to PROCAPS S.A. based in Colombia and expect to receive approval to market and sell DAVANAT® and generate revenue in that country. Pro-Pharmaceuticals has reached a major milestone on the path to approval in other South American countries with this development and is finalizing plans to initiate a Phase lll trial in the U.S. for DAVANAT® to treat colorectal cancer patients."

"In addition, we were recently awarded approximately $489,000 for two federal grants: one for DAVANAT®, our anti-cancer compound and a second grant for our GR-Series of anti-fibrosis and cirrhosis compounds, which have reversed liver fibrosis/cirrhosis in pre-clinical studies," said James Czirr, Executive Chairman and co-founder. "This grant money will be used to accelerate the commercialization of DAVANAT® and the pre-clinical trials for our liver fibrosis compounds. These grants validate our drug development programs and our proprietary technology for treating acute and chronic diseases with polysaccharides. We were awarded the grants because our compounds met the criteria of being novel, non-toxic, and deemed worthy of accelerated development because the Galectins they target are instrumental in the pathology of many diseases."

With the funds on hand at September 30, 2010, and with cash received subsequent to the quarter end of approximately $1,104,000 from warrant exercises and payment from PROCAPS S.A. for the shipment of DAVANAT®, there is sufficient cash to fund operations into the third quarter of 2011. In addition, on November 9th, the Company received approximately $255,000 from the federal government for one of the two grant awards. That money will be allocated towards the commercialization of DAVANAT®. The Company expects to receive the money from the fibrosis grant in the first quarter of 2011.

For the third quarter of 2010, ended September 30, 2010, the Company reported a net loss applicable to common stock of $1,899,000, or ($0.03) per share, basic and diluted, compared with a net loss applicable to common stock of $1,915,000 or ($0.04) per share for the same period in 2009. The third quarter 2010 results include $100,000 of non-cash gain related to the change in the fair value of warrants compared with an expense of $122,000 for the same period in 2009.

For the nine months ended September 30, 2010, the Company reported a net loss applicable to common stock of $7,191,000, or ($0.13) per share, basic and fully diluted, compared with a net loss of $8,111,000, or ($0.17) per share for the same period in 2009. The results for the nine months ended September 30, 2010 include $1,311,000 of non-cash expense related to the change in the fair value of warrants compared with a non-cash expense of $1,836,000 for the same period in 2009.

Research and development expense for the three and nine months ended September 30, 2010 was $313,000 and $676,000, respectively, compared with $289,000 and $865,000 for the three and nine months ended September 30, 2009, respectively. The increase in research and development expense for the three months ended September 30, 2010, compared with the same period in 2009 is due primarily to increased activities related to initiating a Phase III clinical trial for DAVANAT® in the U.S. The decrease in research and development expense for the nine months ended September 30, 2010, compared with the same period in 2009, is due primarily to decreased activities in the first six months of 2010 related to clinical programs.

General and administrative expenses for the three and nine months ended September 30, 2010 was $899,000 and $2,918,000, respectively, compared with $961,000 and $4,111,000 for the three and six-months ended September 30, 2009, respectively. The decrease is due primarily to lower payroll, legal, and accounting expenses and lower stock-based compensation, partially offset by increased business development activities to gain regulatory approval to commercialize DAVANAT®.

Source:

Pro-Pharmaceuticals

Comments

The opinions expressed here are the views of the writer and do not necessarily reflect the views and opinions of News Medical.
You might also like... ×
Entos Pharmaceuticals selects two lead DNA vaccine candidates for COVID-19