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First Quarter 2008 Results
For the quarter ended March 31, 2008, the Company reported a net loss of$1,584,047 or $0.13 per basic and diluted share, compared to a net loss of$1,252,078, or $0.10 per basic and diluted share for the same period in 2007.First quarter 2008 results included non-cash charges relating to stock-basedcompensation in the amount of $263,404, compared to $200,368 in the sameperiod in 2007.
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Research and development expenses for the first quarter of 2008 were$1,084,359, an increase of 33.5% compared to $812,520 in the first quarter of2007. These expenses include non-cash stock-based compensation of $174,556 and$78,393, respectively.
General and administrative expenses for the first quarter of 2008 totaled$639,673, a decrease of 6.6% compared to $684,626 in the first quarter of2007. These expenses include non-cash stock-based compensation of $88,848 and$121,975, respectively.
As a development stage pharmaceutical company, Catalyst has no revenuesto-date.
At March 31, 2008, the Company had cash and cash equivalents totaling$14.7 million and no long-term debt. The Company believes that its existingcash and cash equivalents will be sufficient to meet the Company's projectedoperating requirements through the middle of 2009.
Operational Update
In May 2008, Catalyst appointed Frank Greenway, M.D., Professor-Chief ofOutpatient Clinic of the prestigious Pennington Biomedical Research Center inBaton Rouge, LA, to the Company's Scientific Advisory Board. Dr. Greenway isone of the world's foremost experts in the areas of obesity treatment,including diets, herbal supplements, obesity surgery and obesity drugdevelopment.
The Company also recently retained Andrew Forman as a Business Developmentand Investor Relations Consultant. Andrew has 11 years of Wall Streetexperience, having served as a specialty pharmaceutical analyst with W.R.Hambrecht, Advest, Friedman Billings Ramsey, and UBS Warburg/Dillon Read. Healso spent nine years as a business development executive in thepharmaceutical industry with Cygnus & Dupont.
Commenting on today's news, Patrick J. McEnany, Catalyst's Chief ExecutiveOfficer, noted, "We continue to progress with our clinical development programfor CPP-109. In particular, we are actively enrolling and dosing subjects inour first, U.S. Phase II clinical trial which will evaluate CPP-109 as atreatment for cocaine addiction. During this quarter, we also expect toinitiate our U.S. Phase II clinical trial evaluating CPP-109 as a treatmentfor methamphetamine addiction."
Mr. McEnany continued, "We are extremely pleased that Dr. Greenway and Mr.Forman have become part of the Catalyst team. We anticipate that Dr. Greenwaywill be a key advisor to Catalyst as we plan for the initiation this summer ofa Phase II clinical trial to study CPP-109 as a potential treatment for BingeEating Disorder (BED). BED, which affects a subset of the obese population,is a newly recognized condition that affects approximately 4 million people inthe U.S. People with BED frequently eat large amounts of food while feeling aloss of control over their eating."
"Additionally, we intend to launch other Phase II trials this year inindications which could include alcohol and nicotine dependence. It is likelythat Catalyst will seek partners for some of these indications and, in thatregard, we are delighted be able to call on the expertise of Andrew Forman.We believe that Andrew's extensive contacts in the pharmaceutical industry as
