Friday, November 7, 2008

Pro-Pharmaceuticals pulls in a profit in Q3

Biopharmaceutical company Pro-Pharmaceuticals Inc. reported it has swung to profitability in the third quarter ended Sept. 30, 2008, from a loss in the same period last year..

According to the Newton-based company, Pro-Pharmaceuticals (AMEX: PRW) made $214,000 in Q3 2008, up from a loss of $2.58 million in Q3 2007. So far this year, Pro-Pharmaceuticals has pared down its net loss to $2.34 million compared with a net loss of $8.12 million for the first three quarters in 2007.

The company said its research and development expenses went up slightly for the third quarter of 2008, to $338,000 compared with $332,000 for the same period in 2007, due primarily to filings with the U.S. Food and Drug Administration.

In September, Pro-Pharmaceuticals announced strategic initiatives to make the struggling company financially stable.

The strategy relies mainly on an expected 505(b) New Drug Application to be approved by the FDA for the company’s colorectal cancer treatment drug Davanat, which would begin generating revenue for the company in 2009. Pro-Pharmaceuticals submitted that its New Drug Application in late September.

The company has taken steps to reduce operating expenses by reducing management compensation and non-core expenses; lowering research, development and clinical trials expenses; and reducing consulting fees and legal and accounting costs.

Pro-Pharmaceuticals reported a net loss of $2 million for the first quarter of 2008 on no revenue, following a net loss of $9.4 million of zero revenue in 2007.