Pro-Pharmaceuticals, Inc. (OTC: PRWP), the leading developer of therapeutics that target galectin proteins to treat fibrosis and cancer, today reported its financial results for the first quarter, ended March 31, 2011. These results are included in the Company’s Quarterly Report on Form 10-Q which has been filed with the SEC.
“This is an exciting new era for our company as we advance our galectin protein science into two indications with tremendous unmet medical needs. We are collaborating with The Ludwig Institute of Cancer Research in Brussels to expand the application of our galectin targeting compounds in administration with cancer vaccines, one of the most exciting new areas of cancer therapy,” said Peter G. Traber, M.D., President and Chief Executive Officer, Pro-Pharmaceuticals. “We expect this collaboration to result in the initiation of a Phase 1/2 clinical trial later this year in patients with metastatic melanoma. In addition, Dr. Scott Friedman at the Mount Sinai School of Medicine is conducting pre-clinical trials to advance our galectin therapeutic compounds to treat liver fibrosis. Our compounds have reversed liver fibrosis and cirrhosis in pre-clinical studies. The only treatment for late stage fibrosis or cirrhosis is liver transplantation.
At March 31, 2011, the Company had $6.9 million of unrestricted cash and cash equivalents available to fund future operations. Subsequent to March 31, 2011, the Company issued approximately 1.0 million shares of common stock for the exercise of common stock warrants and options, resulting in cash proceeds of $0.6 million. The Company believes that with the funds on hand at March 31, 2011 and cash received subsequent to quarter end, there is sufficient cash to fund operations through 2012.
For the first quarter of 2011, the Company reported a net loss applicable to common stock of $2.7 million, or ($0.04) per share, basic and diluted, compared with a net loss applicable to common stock of $2.8 million or ($0.06) per share for the same period in 2010. The first quarter 2011 results included $0.4 million of non-cash expense related to the change in the fair value of warrants compared with $1.1 million in 2010.
Research and development expense for the first quarter of 2011 was $0.7 million, compared with $0.1 million for the same period in 2010. The increase was due primarily to increased stock-based compensation as well as increased activity in clinical and pre-clinical programs.
General and administrative expense for the first quarter of 2011 was $1.3 million, compared with $0.9 million for the same period in 2010. The increase was due primarily to increased payroll, legal, accounting and business development expense.