New River reports $29.9 million net loss for fiscal year 2005

By Lisa Kerner

Erie, Pa., March 10 - New River Pharmaceuticals Inc. said it had a net loss of $29.9 million, or $0.83 per share, for the fiscal year ended Jan. 1, 2006, compared with a net loss of $14.3 million, or $0.48 per share, for the fiscal year ended Jan. 2, 2005.

Cash and short-term investment balances were $52.8 million at Jan. 1.

On Feb. 6, New River received $50 million under the terms of its collaboration with Shire Pharmaceuticals Group plc in regards to NRP104, New River's lead drug under development.

General and administrative expenses were up at $13.2 million for the fiscal year ended Jan. 1, compared with $5.9 million for the previous year. New River attributes the increase to compensation-related costs and a general increase in administrative costs as part of operating as a public company.

Research and development expenses were also up at $18.4 million for the fiscal year ended Jan. 1, compared with $10.2 million for the year-ago period. This increase was the result of the continued expansion of New River's research and development programs, clinical trials associated with NRP104 and increases in compensation-related costs, according to the company.

"We are pleased with our performance in 2005. The year was highlighted by the filing of the New Drug Application on NRP104, our lead compound under development, for the treatment of attention deficit hyperactivity disorder in pediatric populations," chief financial officer and chief operating officer Krish Krishnan said in the release.

"We believe that this advancement together with the progress on our other pipeline products positions us well for future growth."

New River expects Food and Drug Administration approval of its NRP104 in the second half of 2006 and plans Investigational New Drug filings on NRP409 and NRP388 by the end of the second quarter of 2006.

The company said it also plans to continue the development NRP290.

Located in Radford, Va., New River is a specialty pharmaceutical company focused on developing novel pharmaceuticals that are generational improvements of widely prescribed drugs.

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