Pro-Pharmaceuticals announces financial results for the third quarter and first nine months of fiscal 2009

Pro-Pharmaceuticals, Inc.Nov 13 2009

Pro-Pharmaceuticals, Inc. (OTCBB: PRWP), a developer of galectin-targeted, carbohydrate therapeutic compounds to treat cancer and fibrosis, today reported its financial results for the third quarter and first nine months of fiscal 2009. These results are included in the Company’s Quarterly Report on Form 10-Q for the three- and nine-month periods ended September 30, 2009, which has been filed with the SEC.

For the three months ended September 30, 2009, the Company reported a net loss applicable to common stock of $1,915,000, or ($0.04) per share, basic and fully diluted, compared with net income of $162,000, or $0.00 per share for the same period in 2008.

For the nine months ended September 30, 2009, the Company reported a net loss applicable to common stock of $8,111,000 or ($0.17) per share, basic and fully diluted, compared with a net loss of $2,522,000, or $(0.05) per share for the same period in 2008.

Research and development expense for the third quarter of 2009 was $289,000, compared with $338,000 for the same period in 2008. The decrease was due primarily to overall lower activity in clinical and pre-clinical programs as a result of cost containment measures. Research and development expense for the nine-month period ended September 30, 2009 was $865,000, compared with $1,504,000 in the same period in 2008. The decrease was due primarily to overall lower activity as a result of cost containment measures, decreased salaries and stock-based compensation. Also, during the three and nine-months ended September 30, 2008, the Company incurred costs related to the filing of the DAVANAT^® Drug Master File with the FDA.

General and administrative expense for the third quarter of 2009 was $961,000, compared with $601,000 for the same period in 2008. The increase was due primarily to increased stock-based compensation charges. General and administrative expense for the nine months ended September 30, 2009 was $4,111,000, as compared with $2,721,000 in the same period in 2008. The increase is due primarily to increased stock-based compensation, business development expenses and the recognition of severance obligations related to the departure of our former Chief Executive Officer.

“We are making the necessary preparations to initiate a Phase III trial to submit a new drug application (NDA) to the U.S. Food and Drug Administration (FDA) to commercialize DAVANAT^®,” said Theodore Zucconi, Ph.D., Chief Executive Officer, Pro-Pharmaceuticals. “We are designing the protocol and plan to initiate the trial for DAVANAT^® to treat late-stage colorectal cancer patients after we raise sufficient funds. In addition, we are actively engaged in discussions with potential partners to distribute DAVANAT^® internationally.”