Pro-Pharmaceuticals, Inc. (OTC: PRWP), a developer of therapeutics that target Galectin receptors to treat cancer and fibrosis, today reported its financial results for the second quarter and the first six months ended June 30, 2010. These results are included in the Company's Quarterly Report on Form 10-Q, which has been filed with the SEC.
"We continue to make progress toward our goal to commercialize DAVANAT®," said Theodore Zucconi, Ph.D., Chief Executive Officer, Pro-Pharmaceuticals. "In the second quarter, we received our first commercial order from PROCAPS S.A. for DAVANAT®. We intend to market DAVANAT® in Colombia as soon as possible after we get regulatory approval in that country. We engaged Dr. Peter Traber, former GlaxoSmithKline Senior Vice President for Clinical Development and Medical Affairs and former Chief Executive Office of Baylor College of Medicine, as our Chief Medical Officer to manage our clinical trials and regulatory efforts. In addition, we are finalizing our plans to initiate a Phase lll colorectal cancer trial in the U.S. with DAVANAT® and 5-FU."
For the second quarter of 2010, the Company reported a net loss applicable to common stock of $2.5 million, or ($0.05) per share, basic and diluted, compared with a net loss applicable to common stock of $3.3 million or ($0.07) per share for the same period in 2009. The second quarter 2010 results included $0.3 million of non-cash expense related to the change in the fair value of warrants compared with an expense of $0.9 million for the same period in 2009.
For the six months ended June 30, 2010, the Company reported a net loss applicable to common stock of $5.3 million, or ($0.10) per share, basic and fully diluted, compared with a net loss of $6.2 million, or ($0.13) per share for the same period in 2009. The results for the six-months ended June 30, 2010 included $1.4 million of non-cash expense related to the change in the fair value of warrants compared with an expense of $1.7 million for the same period in 2009.
Research and development expense for the three and six-months ended June 30, 2010 was $234,000 and $363,000, respectively, compared with $423,000 and $576,000 for the three and six-months ended June 30, 2009, respectively. The decrease is due primarily to cost containment measures and overall lower activity in clinical and pre-clinical programs.
General and administrative expense for the three and six-months ended June 30, 2010 was $1,116,000 and $2,019,000, respectively; compared with $1,569,000 and $3,150,000 for the three and six-months ended June 30, 2009, respectively. The decrease is due primarily to lower payroll, reduced legal and accounting expense, partially offset by increased business development expense to gain regulatory approval to commercialize DAVANAT®.
The Company believes that with the funds on hand at June 30, 2010 and with the cash received from warrant exercises subsequent to quarter end of $359,000, there is sufficient cash to fund operations into March 2011.
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