Pharmos
Receives Grant from Israeli Government Agency
US$
2.8 Million Funding is Among Ten Highest Grants Awarded
Rehovot,
Israel and Iselin, NJ, June 6, 2002
- Pharmos Corporation (Nasdaq: PARS and Nasdaq Europe:
PHRM) today announced it has been awarded a grant of up
to approximately US$ 2.8 million by the Office of the
Chief Scientist of Israel’s Ministry of Industry
and Trade primarily to help fund the Company’s development
of dexanabinol for traumatic brain injury (TBI). The grant
is among the ten highest grants awarded and the largest
given to a biotech company this year.
“This
grant comes at an important time in the development of
dexanabinol, and will help execute our plans for the pivotal
study we are currently undertaking,” said Haim Aviv,
Ph.D., Chairman and Chief Executive Officer. “It
is a great honor for us to be the recipient of this and
previous funding from The Office of the Chief Scientist,
which we view as a good measure of confidence in our development
of dexanabinol as a treatment for TBI.”
The
current award, available through fiscal year 2002, is
the largest single grant received by Pharmos to date from
the Office of the Chief Scientist. Prior grants to help
fund various R&D projects totaled approximately US$
4.2 million at December 31, 2001. The Company is required
to pay royalties to the Office of the Chief Scientist
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.
Dexanabinol
is the first neuroprotective product under clinical development
at Pharmos. Patients are currently being enrolled in centers
in Belgium, Finland, France, Germany, Israel, Italy, the
Netherlands, Spain and the UK. Upon receipt of regulatory
approvals, enrollment of patients will commence in up
to seven additional international countries, including
the US. Enrollment of approximately 860 total patients
is anticipated by the end of 2003. If approved for marketing,
dexanabinol will be the first drug in the world for the
treatment of TBI.
The
Office of the Chief Scientist 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 R&D 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 neurological disorders such as traumatic
brain injury, stroke, pain, multiple sclerosis, and other
CNS and peripheral neuro-inflammatory indications.
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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