Higher R&D expenses increase TopSpin loss

Most of the increase was related to FDA regulatory procedures for the company’s IntraVascular MRI catheter.

IntraVascular MRI (IVMRI) catheter developer Topspin Medical Inc. (TASE:TOPMD) today published its financial report for the second quarter and first half of 2007.

The company’s R&D expenditures rose to NIS 11.7 million in the first half of 2007 from NIS 7.3 million for the first half of 2006; second quarter R&D expenditures rose 45% over the corresponding quarter to NIS 4.9 million. Most of the increase was related to US Food and Drug Administration (FDA) regulatory procedures for the IVMRI and higher R&D labor costs.

Topspin posted a net loss of NIS 19.7 million in the first half, almost double its loss of NIS 10.2 million in the corresponding period; second quarter net loss rose to NIS 8.8 million from NIS 5.4 million for the corresponding quarter.

In June, Topspin completed clinical trials for the IVMRI needed to apply for FDA marketing approval for the device. The company obtained EU CE Mark certification for the device in December 2007. In July, the company signed a distribution and clinical research cooperation agreement with Johnson & Johnson (NYSE: JNJ). Under the agreement, Johnson & Johnson subsidiary Cordis Corporation will finance, through Johnson & Johnson Israel, joint clinical trials for the IVMRI in Israel. The trials will test the imaging catheter as an innovative diagnostic and treatment tool for patients at risk of cardiac arrest.

Published by Globes [online], Israel business news - www.globes.co.il - on August 14, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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