Pharmos Corporation Reports 2008 First Quart...( ISELIN N.J. May 8 /- Pharmos Corp...)

ISELIN, N.J., May 8 /PRNewswire-FirstCall/ -- Pharmos Corporation (Nasdaq: PARS) today reported results for the first quarter ended March 31, 2008. The Company recorded a net loss of $3.6 million, or $0.14 per share, for the first quarter 2008 compared to a net loss of $4.8 million, or $0.19 per share, in the first quarter 2007. Cash and short-term investments totaled $11.3 million at March 31, 2008.

The decrease in net loss for the first quarter 2008 is due primarily to a 29% decrease in operating expenses, which was driven by a 68% decrease in general and administrative expenses to $0.8 million compared to $2.5 million in the first quarter 2007.

Research & development net, increased by $208,136 or 8%, from $2,570,098 in 2007 to $2,778,234 in 2008. Increased expenditures for the dextofisopam clinical trial are offset in part by the cost savings resulting from the downsizing and curtailment of general R&D programs. CB2 research and discovery and R&D overhead at our Rehovot facility were the areas of reduced spending.

During the first quarter, the Company advanced a Phase IIb trial of its lead compound, dextofisopam, in female IBS patients, which is expected to enroll approximately 480 patients in about 70 sites over an 18 month period. Costs of $2.0 million were incurred during the quarter in connection with the trial, comprising CRO-related activities and patient recruitment costs. Dextofisopam was one of the compounds the Company obtained through the acquisition of Vela Pharmaceuticals Inc. which closed in October 2006. The continued development of this compound through late-stage clinical testing will significantly increase the research and development expenses going forward.

A Phase 2a clinical trial with t
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