Pro-Pharmaceuticals, Inc. (OTCBB: PRWP), a developer of therapeutics that target Galectin receptors to treat cancer and fibrosis, today reported its financial results for the first quarter, ended March 31, 2010. These results are included in the Company's Quarterly Report on Form 10-Q which has been filed with the SEC.
“In the first quarter, we entered into an exclusive agreement with PROCAPS S.A. to market DAVANAT® in Colombia as soon as we get regulatory approval in that country. We also plan to initiate a Phase lll colorectal cancer trial in the U.S. with DAVANAT® and 5-FU this year.”
"Pro-Pharmaceuticals continues to make progress toward its goal to commercialize DAVANAT®," said Theodore Zucconi, Ph.D., Chief Executive Officer, Pro-Pharmaceuticals. "In the first quarter, we entered into an exclusive agreement with PROCAPS S.A. to market DAVANAT® in Colombia as soon as we get regulatory approval in that country. We also plan to initiate a Phase lll colorectal cancer trial in the U.S. with DAVANAT® and 5-FU this year."
Subsequent to March 31, 2010, the Company completed two closings of Series B-2 redeemable convertible preferred stock for total net proceeds of approximately $833,000, and received approximately $689,000 from existing warrant holders who exercised their warrants. The Company believes that with the funds from the subsequent B-2 closings, cash received from the exercise of warrants and the cash on hand at March 31, there is sufficient cash to fund operations into October 2010.
For the first quarter of 2010, the Company reported a net loss applicable to common stock of $2.8 million, or ($0.06) per share, basic and diluted, compared with a net loss applicable to common stock of $2.9 million or ($0.06) per share for the same period in 2009. The first quarter 2010 results included $1.1 million of non-cash expense related to the change in the fair value of warrants compared with $0.9 million in 2009.
Research and development expense for the first quarter of 2010 was $129,000, compared with $153,000 for the same period in 2009. The decrease was due primarily to overall lower activity in clinical and pre-clinical programs as a result of cost containment measures.
General and administrative expense for the first quarter of 2010 was $903,000, compared with $1,581,000 for the same period in 2009. The decrease is due primarily to lower payroll, legal and accounting expense, offset by increased business development expense.
Annual Shareholders Meeting
The Company's Annual Meeting of Shareholders is scheduled to be held on May 25th at the Company's office in Newton, Massachusetts.
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