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Pharmos Corporation Reports 2007 Fourth Quarter and Year-end Results
Date:2/28/2008

ISELIN, N.J., Feb. 28 /PRNewswire-FirstCall/ -- Pharmos Corporation (Nasdaq: PARS) today reported financial results for the fourth quarter and twelve-month period and ended December 31, 2007.

Fourth Quarter Ended December 31, 2007

For the fourth quarter ended December 31, 2007, Pharmos reported a net loss of $2.7 million, or $0.11 per share compared to a net loss of $23.8 million, or $1.00 per share for the same period in 2006. The substantial decrease in net loss is primarily due to a one-time $20.6 million non-cash in- process acquired research and development expense Pharmos recorded in the 2006 fourth quarter in connection with its acquisition of Vela Pharmaceuticals. Without the in-process acquired research and development expense, the 2006 fourth quarter net loss after income tax benefit would have been $3.2 million, or $0.13 per share.

Gross research and development expenses decreased 8.3% to $2.2 million in the 2007 fourth quarter compared to $2.4 million in the same period in 2006. The decrease in gross research and development expenses was primarily due to the absence in the 2007 fourth quarter of two Phase 2a clinical trials of the CB2 compound cannabinor, which trials were ongoing in the 2006 fourth quarter but were completed in the first half of 2007. Due to lower qualifying expenditures, grants were down 88.1% in the 2007 fourth quarter, resulting in a 6.1% increase in net research and development expenses to $2.1 million in the 2007 fourth quarter compared to $2.0 million in the same period in 2006. General and administrative expenses decreased 17.9% to $1.7 million in the 2007 fourth quarter compared to $2.1 million in the same period in 2006. The decrease in general and administrative expenses was pri
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