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Pharmos Corporation Reports 2007 Third Quarter Results
Date:10/30/2007

ISELIN, N.J., Oct. 30 /PRNewswire-FirstCall/ -- Pharmos Corporation (Nasdaq: PARS) today reported results for the third quarter ended September 30, 2007. Net loss decreased 17% to $3.5 million, or $0.14 per share, for the third quarter 2007, from a net loss of $4.2 million, or $0.22 per share, in the third quarter 2006. Cash and short-term investments totaled $13.9 million at September 30, 2007.

The decrease in net loss for the third quarter 2007 is due to a 21% decrease in operating expenses to $3.7 million from $4.7 million in the third quarter 2006. Gross research and development expenses increased 16% to $2.7 million compared to $2.3 million in the third quarter 2006. A decrease in research and development grant receivables to $0.2 million in the third quarter 2007 from $0.4 million in the third quarter 2006 impacted net research and development expenses, which totaled $2.5 million compared to $1.9 million in the third quarter 2007 and 2006, respectively. The increase in net research and development expenses was more than offset by lower general and administrative expenses, which decreased 56% to $1.2 million from $2.7 million in the third quarter 2006. The decrease in operating expenses was partially offset by a decrease in net other income to $0.2 million in the third quarter 2007 from $0.5 million in the third quarter 2006, due primarily to a decrease in interest income.

Gross research and development expenses in connection with Pharmos' leading clinical program, dextofisopam for irritable bowel syndrome (IBS), were $1.1 million for the quarter, during which the Company advanced its ongoing Phase 2b study of dextofisopam. The Phase 2b study, which commenced in June 2007, is expected to enroll approx
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