Pharmaxis healthy, despite clinical trials spend

Pharmaxis (ASX: PXS) has released its preliminary final results, posting a loss of AUD$6 million for the 2003-2004 financial year.

The company reported this week that its net loss after tax had increased more than 300 per cent over last year's loss of $1.8 million. Revenues, primarily coming from government grants including an R&D Start grant awarded in June 2003, increased 71 per cent to $2.2 million.

But the company has a healthy cash position, thanks to the $25 million raised in its IPO in November last year, and at the end of June had $25 million remaining in the bank.

According to the preliminary final report commentary, the increased loss was primarily due to increased preclinical development and clinical trials activity, and the commencement of manufacturing of the two products in trials, Aridol and Bronchitol.

Highlights for the year include: -- listing on the ASX on November 10, 2004 after raising $25 million; -- commencing manufacturing of Aridol and Bronchitol at the company's new TGA-registered manufacturing facility; -- commencing recruitment for three clinical trials, including the Phase III trial for lung function test Aridol, and two Phase II clinical trials for Bronchitol, a treatment for bronchiectasis and cystic fibrosis -- recruitment for the Aridol trial and the bronchiectasis trial were completed in July this year; -- a successful application for research funding under AusIndustry's Pharmaceutical Partnerships Program, which will bring in $6.1 million in funding over the next four years.