The Ann Arbor pharma startup Adeona Pharmaceuticals Inc. (Amex: AEN) this week reported a larger loss but also larger sales and more positive developments for the first quarter ended March 31.
The company said its subsidiary Adeona Clinical Laboratory had achieved profitability, a clinical trial of its Trimesta multiple sclerosis drug for women received $2 million in new grant funding, and a study of its reaZin supplement showed promise in managing zinc deficiency associated with Alzheimer’s disease.
The company said it completed two financing transactions — the sale of 2.85 million shares of common stock at $1.40 a share in February and the sale of 1.69 million shares at $2.0725 a share in April — should meet the company’s operating needs for the next 12 months.
Revenue for the quarter was $323,138, up from $60,039 in the same quarter a year earlier. Total costs and expenses for the quarter were $1.7 million, up from $1.2 million a year earlier.
The net loss for the quarter was $2.2 million or 9 cents a share, vs. $1.1 million or 5 cents a share a year earlier. The company said the increase was caused almost entirely by a charge for the liability of future stock warrants and a one-time charge relating to the modification of some stock options.
As of March 31, Adeona had $6.1 million in cash, up from $2.6 million on Dec. 31.
“I believe the operational and clinical milestones we achieved during the first quarter of 2011 should position us for future growth and increased shareholder value,” said James S. Kuo, M.D., CEO. “We are encouraged that Adeona Clinical Laboratory has expanded its operations into a profitable business subsidiary. With the top-line results from our Alzheimer’s clinical study reported and a commercial-scale manufacturer of reaZin in place, we continue to advance our prescription medical food towards commercialization. We are anticipating the review of the reaZin clinical results with our scientific advisors and intend to identify a pathway that could provide for additional labeling claims. At the same time, we look forward to reporting the completion of patient enrollment in the Trimesta MS trial and to exploring new opportunities that could expand our MS clinical program.”
To listen in on a replay of a conference call discussing the results, visit www.videonewswire.com/event.asp?id=79592.