DOV Pharmaceutical says capital needs threaten going-concern status beyond November 2008

By Caroline Salls

Pittsburgh, March 31 - DOV Pharmaceutical, Inc.'s capital needs are still threatening its ability to continue as a going concern, according to a 10-K filed Monday with the Securities and Exchange Commission.

According to the filing, although the company has enough capital to fund its operations through November 2008, it will continue to have capital needs. As previously reported, the company said in November that its existing capital would take it through at least May 31.

Although DOV said it now expects to have enough capital to take it through November, the company said in the 10-K that it could need additional capital sooner than expected under some circumstances, including unexpected costs associated with the phase 2 clinical trial it is conducting in Eastern Europe.

The company's "future success is now almost entirely dependent upon the successful outcome of pending clinical trials" for its lead product candidates, the 10-K said.

In addition, the company said its stock price fell to near its all-time low on March 15, and the stock price remains highly volatile.

DOV said it plans to seek additional capital in 2008 through public or private financing or collaborative agreements.

DOV is a biopharmaceutical company based in Somerset, N.J.

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