Losses in the third quarter skyrocketed to more than $10 million for Aeolus Pharmaceuticals as the company reorganized.
Aeolus, which was known formerly as Incara, said losses were driven up by the conversion of $5 million in debt to stock and nearly $3 million charge for accelerated employee stock options.
Aeolus raised $9.4 million in financing, completed a reverse 10-for-1 stock split, plus brought in new management and board.
The company also filed an investigational new drug application to the FDA for its proposed drug to treat Lou Gehrig’s disease.
Incara’s losses hit $10.46 million, or 81 cents a share compared to a $1.2 million loss one year ago.
Also Thursday, Aeolus reported that its compound AEOL 10150 showed “sustained benefit” in a mouse model of spinal cord compression injury. The data was reported by. Sheng Spasojevic, Warner and Batinic-Haberle at Duke University Medical Center in the journal Neuroscience Letters.
The Christopher Reeve Paralysis Foundation, The Paralyzed Veterans of America
and the National Institutes of Health support the work.