CombinatoRx says that its acquisition of Neuromed last year allowed the developer to swing to profitability in the fourth quarter. And the CEO adds that the recent approval of Exalgo, the pain medication it acquired with Neuromed, helped position the company to pursue new therapies for pain and inflammation.
"With the successful approval of Exalgo... we are uniquely positioned to become a thriving biopharmaceutical business," proclaimed CombinatoRx president and CEO Mark Corrigan. "We will leverage our expertise and pipeline to develop innovative products for the treatment of pain and inflammation and have focused our portfolio and R&D efforts in these core therapeutic areas."
CombinatoRx posted a $25.2 million profit in the fourth quarter based largely on a one-time, $21 million gain. The Cambridge, MA-based developer also revealed that R&D spending in the fourth quarter plunged 70 percent. Cash and equivalents fell to $24.1 million, down from $40.9 million at the end of 2009. The approval of Exalgo earlier this month triggered a $40 million milestone payment to CombinatoRx from Mallinckrodt.
CombinatoRx was forced to restructure in late 2008 after its lead therapy failed a mid-stage trial. That failure eventually led to its merger with Neuromed.
- here's CombinatoRx's release
- check out the story from Canadian Business
- and here's the story from the Boston Business Journal