Pharmos
Receives 2003 Grant from Israel Office of Chief Scientist
US$ 4.4 Million Supports Development of Dexanabinol
and CB2-selective Compounds
Rehovot,
Israel and Iselin, NJ, May 20, 2003 - Pharmos Corporation
(Nasdaq: PARS and Nasdaq Europe: PHRM) today announced
it has been awarded a grant of up to approximately US$
4.4 million by the Office of the Chief Scientist (OCS)
of Israel's Ministry of Industry and Trade. The portion
of the grant allocated for Pharmos' traumatic brain injury
(TBI) program with dexanabinol rose 24% to approximately
US$ 3.1 million compared to 2002 OCS funding. The remaining
portion of the 2003 grant is split between development
of dexanabinol for prevention of cognitive impairment,
and development of proprietary CB2-selective compounds
to treat autoimmune and neurological diseases.
"This
is a sizable grant and the effects are far reaching,"
said Haim Aviv, Ph.D., Chairman and Chief Executive Officer.
"The tangible impact will be an important contribution
and a boost to the dexanabinol development program at
a time of peak related operations. Equally significant
to us is the validation this funding confers on the importance
of the areas of research in which we are involved, and
on the technology behind our proprietary synthetic cannabinoid
platforms."
The
2003 award is the largest single OCS grant received by
Pharmos to date. Prior grants to help fund various research
and development projects totaled approximately US$ 7.0
million at December 31, 2002. The Company is required
to pay royalties to the OCS ranging from 2% to 5% of product
sales, if any, that result from the research activities
conducted with such funds, up to the total amount of the
grants.
Approximately
600 patients have been enrolled to date in over 60 international
centers participating in the Phase III clinical trial
of dexanabinol for TBI. Enrollment of U.S. patients in
the Phase III TBI trial will commence soon upon completion
of procedural processes with the participating centers.
Enrollment of up to 200 heart surgery patients in three
Israeli centers is underway in a Phase IIa trial testing
the effectiveness of dexanabinol in reducing post-surgical
cognitive impairment. Patient enrollment in both dexanabinol
trials is expected to be completed around year-end 2003.
The CB2 selective program is a novel approach to treat
pain and is addressing a large unmet need.
The
OCS is largely focused on promoting the growth of commercial
research and development in Israel. Its implementation
of a 1984 government policy, codified in the Law for the
Encouragement of Industrial Research and Development,
includes various assistance programs that provide qualifying
companies in high-tech industries with incentives to avidly
undertake R&D activities. By sharing the risks inherent
in high-tech research and development projects, the Israeli
government hopes to facilitate expansion of its growing
technological infrastructure, a main component of the
country's economy.
Pharmos
discovers, develops, and commercializes novel therapeutics
to treat a range of indications, in particular neurological
and inflammation- based disorders. The Company's first
neuroprotective product is dexanabinol, a tricyclic dextrocannabinoid,
currently undergoing clinical testing as a treatment for
TBI and as a preventive agent against post-surgical cognitive
impairment. Other dextrocannabinoid compounds and CB2
receptor agonist compounds from Pharmos' proprietary synthetic
cannabinoid library are being studied in pre-clinical
programs targeting stroke, pain, multiple sclerosis and
other disorders.
Statements
made in this press release related to the business outlook
and future financial performance of the Company, to the
prospective market penetration of its drug products, to
the development and commercialization of the Company's
pipeline products and to the Company's expectations in
connection with any future event, condition, performance
or other matter, are forward-looking and are made pursuant
to the safe harbor provisions of the Securities Litigation
Reform Act of 1995. Such statements involve risks and
uncertainties which may cause results to differ materially
from those set forth in these statements. Additional economic,
competitive, governmental, technological, marketing and
other factors identified in Pharmos' filings with the
Securities and Exchange Commission could affect such results.
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