Incara Pharmaceuticals Corp., which only recently closed a company-saving $3 million in financing, also narrowed its third quarter net loss by $2.2 million.

For the quarter, Incara had a net loss of $1.2 million, or 9 cents per share, compared to a net loss of $3.4 million, or 26 cents per share, in the same period a year ago.

Incara reported a net loss attributable to common stockholders of $2.6 million, or 19 cents per share, for the nine months ended June 30, 2003. That compares to a net loss of $9.4 million, or 74 cents per share, in the same period a year ago.

The nine-month period ended June 30, 2003 also includes a gain on the sale of Incara’s liver cell therapy program of $1.9 million, or 14 cents per share.

Since Incara divested its programs in liver stem cell research, the company’s only remaining shot at survival is its antioxidant program.

On Aug. 8, Incara announced it had selected its catalytic antioxidant AEOL 10150 for late-stage pre-clinical development.

The company is developing AEOL 10150 to support an Investigational New Drug (IND) application for the treatment of amyotrophic lateral sclerosis (ALS), also known as Lou Gehrig’s disease.

Funding to complete one or more Phase 1 clinical trials for AEOL 10150 is expected to come from a bridge loan facility of $3 million from Xmark that Incara closed on July 30.

Incara also signed a nonbinding letter of intent for an additional $5 million in funding, subject to satisfactory completion of a toxicology study of AEOL 10150, stockholder approval and other conditions.

“During the past three months we have taken the important first steps in the restructuring of Incara that is necessary to obtain the resources needed for the clinical development of our compounds,” said Clayton Duncan, chairman and chief executive officer of Incara.