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(RTTNews) - Early Tuesday, Redwood City, California-based pharmaceutical company A.P. Pharma Inc.

( | | | ) reported a wider loss in the third quarter. The company recorded no revenues in the quarter. The company posted third quarter net loss of $3.

82 million or $0.15 per share, compared to net loss of $1.74 million or $0.

07 per share in the same quarter last year. The current year quarter loss from continuing operations widened to $3.75 million or $0.

15 per share from $1.76 million or $0.07 per share in the previous year.

A.P. Pharma reported no revenues in the third quarter, which reflected the sale effective October 1, 2005, of rights to receive royalties on sales of Retin-A Micro and Carac.

In the same quarter of the prior year, the company recorded royalty revenues of $1.3 million related with sales of the above products. Total operating expenses for the quarter increased to $3.

95 million from $3.17 million in the previous year. The company's third quarter operating loss widened to $3.

95 million from $1.84 million in the previous year. For the third quarter, research and development expense totaled $3.

1 million, up 35% compared to $2.3 million in last year's third quarter. The company said the increase reflected the higher cost levels related with its Phase 3 study for APF530 compared to those incurred for its Phase 2 study last year.

For the nine-month period, the company reported a profit of $10.93 million or $0.43 per share, compared to a loss of $5.

61 million or $0.22 per share in the comparable period last year. For the period, income from continuing operations was $11.

02 million or $0.43 per share, compared to a loss of $5.58 million or $0.

22 per share in the year earlier. The company recorded no revenues for the current year six-month period, compared to revenues of $3.95 million in the previous year same period.

The company said that it is continuing to gain additional opportunities for partnering the development of APF530 prior to completion of the Phase 3 trials. APF530, which contains the 5HT3 antagonist anti-nausea drug granisetron is formulated with the company's proprietary Biochronomer bioerodible drug delivery system. This is being developed for the prevention of acute and delayed chemotherapy-induced nausea and vomiting in patients undergoing either moderately or highly emetogenic chemotherapy for cancer.

The company said that it expect to provide initial data from its Phase 3 clinical trial with APF530 in the second half of 2007. The company revised the time due to slower-than-expected start in getting IRB approvals and clinical sites prepared to begin enrolling patients, and in recruiting patients during the summer months. APPA closed Monday's regular trading session at $1.

10, up $0.04, on a volume of 221K shares.

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