Prana loss rises to $10m, as R&D spend increases

Melbourne brain-disease drug-discovery company Prana Biotechnology (ASX:PBT, NASDAQ:PRAN) has reported an after-tax loss of $9.9 million in the year to June.

The loss, up 116 per cent on last year’s result, came despite a 28 per cent lift in revenue, to $2,3 million which included a $1.35 million AusIndustry Start Grant to support the development of the PBT2, Prana’s second-generation lead compound for Alzheimer’s Disease

The biggest contributors to the increased loss were a sharp rise in R&D expenditure, from $1.7 million to $5.3 million and a rise in personnel costs from $1.3 million to $2.7 million.

Prana’s total current assets are valued at $29.7 million up from $3.5 million in 2003. Total non-current assets, including intangibles, were $11.5 million down on last year’s $12.6 million.

The company raised $34.6 million from two share issues, in September 2003, and June this year, resulting in a net increase in cash holdings of $26.3 million.