Drug development company Pharmos Corp. (Nasdaq: PARS) announced on Friday that it will cease operations in Rehovot at the end of October and manage these activities from the company's US headquarters in Iselin, New Jersey. The announcement officially puts and end to what has been effectively true for a long time -Pharmos's dream of becoming the first Israeli patent pharmaceutical company.
In October 2007, Pharmos fired most of the staff at its Rehovot facility, keeping only 11 employees. The company currently has one drug undergoing clinical trials -dextofisopam, for the treatment of irritatable bowel syndrome in women. Pharmos obtained the drug, now undergoing Phase IIb clinical trials, through the acquisition of Vela Pharmaceuticals Inc. in 2006 for $39 million.
Success for dextofisopam could change Pharmos's future, but could equally turn the company into a takeover target. Meanwhile, the company's latest financial report states that it is struggling to find patients the clinical trial.
Pharmos has other drugs in clinical trials. Management of the research programs for these drugs will now be transferred to the US. They include a Phase IIa trial for proprietary 3% diclofenac NanoEmulsion cream for the treatment for osteoarthritis pain, and a CB2 receptor selective library of compounds, including preclinical development of PRS-639,058 for neuropathic pain. The company is also struggling to find patients these clinical trials.
Pharmos said that it is seeking partners to take the lead in both operating and funding the research programs in Israel, and that it has been working with a boutique life science investment bank for this purpose.
Published by Globes [online], Israel business news - www.globes-online.com - on August 31, 2008
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