News

Losses threaten Napo's future

17 April 2008 16:22:00

California-based Napo Pharmaceuticals is running out of cash after reporting increased losses for 2007.

The company had cash and cash equivalents of $7.2m at the end of 2007, after racking up a net loss attributable to shareholders of $26.2m compared with a loss of $14m in 2006.

The company's auditors said the company has a net capital deficiency and a history of losses that raise substantial doubts about the company's ability to continue as a going concern.

Napo's management have plans to raise fresh funding which include the possibility of licensing the rights to crofelemer, its gastro-intestinal compound, but said any licensing fees may have to be supplemented by debt or share issues if the company is to have any chance of financing the completion of the crofelemer-HIV (CRO-HIV) phase 3 clinical trial.

The CRO-HIV phase 3 clinical trial was described as "pivotal" by the company and is scheduled to complete in the first half of 2009. CRO-HIV is a treatment for chronic diarrhoea suffered by HIV/AIDS patients.

Meanwhile, the company added that the positive results of the Phase 2a trial for CRO-ID, its treatment for acute infectious diarrhoea (including cholera), "coupled with the regulatory pathway for CRO-ID/CRO-HIV will be attractive to a partner."

All data suppied by Digital Look (15 minute delay)




Risk Warning

There is an extra risk of losing money when shares are bought in some smaller companies including 'Penny Shares'. There is a big difference between the buying price and the selling price of these shares. If they have to be sold immediately, you may get back much less than you paid for them or you may have difficulty in selling them. Past performance is not a reliable indicator of future results. The price may change quickly and it may go down as well as up. You could lose every penny put into a particular share.

The information contained above has been compiled from documented sources which are believed to be reliable but, due to their very nature, are subject to a degree of historical inaccuracy and have not been independently verified and cannot be guaranteed. The pages on this website are provided for information only. City Equities Limited will not accept responsibility for loss incurred by any person or body acting, or refraining from acting, as a result of information and/or opinions given anywhere on this website. Issued by City Equities Limited, Aldermary House, 10-15 Queen Street, London, EC4N 1TY. Registered in England. Registered No. 2742847. Registered Address: Amwell House, 19 Amwell Street, Hoddeson, Herts. EN11 8TS. City Equities Limited is Authorised and regulated by the Financial Services Authority. Registration No. 155051.