Aeolus Pharmaceuticals, formerly known as Incara, said its losses soared to more than $17 million, or more than $2 a share, in 2004.

Aeolus (OTC BB: AOLS) said it lost $17.3 million in a statement issued Friday evening. The company lost $3.9 million in 2003.

The company said its losses included increased spending for clinical trials plus $5 million related to conversion of debt to stock and $2.4 million in accelerated vesting employee stock options.

Aeolus now has a clinical trial underway for a possible treatment of Lou Gehrig’s Disease.