NeoPharm first-quarter net loss decreases to $1.4 million

Jun 11 2010

NeoPharm, Inc. (Other OTC: NEOL.PK), a publicly traded biopharmaceutical company dedicated to the research, development and commercialization of new and innovative therapeutic applications of drugs for cancer and other diseases, today announced its first quarter 2010 financial results.

"We are very pleased with the progress we continue to make with the development of our drug candidate portfolio. We recently announced that the FDA has granted orphan-drug designation for IL13-PE38QQR (IL13-PE) for the treatment of Idiopathic Pulmonary Fibrosis (IPF). IPF is the most deadly disease of the lungs in humans for which there is currently no proven effective treatment," commented Dr. Aquilur Rahman, President and Chief Executive Officer of NeoPharm. "We have also started enrolling patients in a Phase II trial for LE-DT as a frontline treatment of patients with locally advanced or metastatic pancreatic cancer. The expansion of the LEP Phase IIb trial for patients with recurrent breast cancer has already begun in India, where we will enroll an additional 35 patients to significantly increase the sample size to 70 patients."

"In addition to the new clinical trials mentioned above, we are anticipating that we will begin enrolling patients soon in another Phase II trial for LE-DT for advanced prostate cancer. We are also expecting the start of a Phase I clinical trial for IPF in the second half of 2010. This is a very exciting time for the Company as we continue to build the clinical expansion on all fronts for the various drugs in our pipeline," further commented Dr. Rahman.

First Quarter 2010 Financial Results

For the first quarter ended March 31, 2010, NeoPharm reported a net loss of $1.4 million, or ($0.05) per diluted share, as compared to a net loss of $2.3 million, or ($0.08) per diluted share, for the same period last year. The decrease in the Company's 2010 first quarter net loss is partially attributable to a decrease in general and administrative expenses as the Company continues its cost-savings initiatives in this area, and partially due to lower research and development expenses as the Company continues to ramp up its new clinical trials in 2010.

During the first quarter, the Company's cash consumption was consistent with the level of spending during the previous quarter, allocating $1.9 million in cash to its operations, versus $1.7 million in the fourth quarter of 2009. NeoPharm anticipates future cash consumption levels to increase consistent with the advancement and progression of its clinical trials and other preclinical development activities. The Company has $3.1 million in cash and cash equivalents as of March 31 2010, and projects that it has adequate resources to fund its operations into the third quarter of 2010. The Company is currently reviewing the terms of various alternatives to raise additional capital to fund operations for the rest of 2010 and beyond.