EARNINGS
Defense Department grants trim losses at Cleveland BioLabs
Cleveland BioLabs cut its third-quarter losses by more than half because of Defense Department grants that the Buffalo-based life sciences company won earlier this year.
The federal grants, which fund the development of Cleveland BioLab’s anti-radiation sickness drug, helped the company more than triple its revenues at a time when all of its drugs are not yet ready to be sold.
Cleveland BioLabs loss fell to $3.1 million, or 23 cents per share, compared with a loss of $6.6 million, or 54 cents per share, a year earlier.
The company’s revenues jumped to $1.85 million from $541,000, mainly because of $1.6 million Cleveland BioLabs received from the Defense Department, part of $8.9 million in total funding, to develop its Protectan drug as a way of treating the effects of radiation exposure.
Cleveland BioLabs in September also won a three-year, $13.3 million grant from the Department of Health and Human Services, which could be a major customer for its Protectan drug because of its potential uses in Homeland Security situations.
Protectan also fared well in a new study disclosed last month on laboratory mice, indicating that it could help counteract some of the harmful side effects resulting from chemotherapy treatments.
Company officials said that study showed that Protectan, after several years of additional research and testing, has the potential to be a useful drug in the treatment of the side effects from chemotherapy — a potentially huge market.
At the same time, Cleveland BioLabs stock is in danger of being kicked off the Nasdaq Stock Market because the Buffalo- based biotechnology company doesn’t meet the exchange’s listing standards. The company has until late November either to bring its shares into compliance with the Nasdaq’s listing standards or apply to have its shares traded on the smaller Nasdaq Capital Market.
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