Loss Reported by Newport Drug Company

Newport Pharmaceuticals International’s continuing investments aimed at establishing the efficacy of its drug Isoprinosine as a treatment for pre-AIDS conditions contributed to a loss of $707,000 for the second quarter of the firm’s 1988 fiscal year.

The deficit for the three months ended Oct. 31 compares with a net loss of $206,000 during the same period last year. Revenues totaled $7.7 million, contrasted with $2.3 million in the second quarter of fiscal 1987.

The increase in revenues was primarily attributable to Newport’s acquisition of America’s Pharmacy Inc. in April. API’s second-quarter revenues are running at an annual rate of $20 million. For the first half of the 1988 fiscal year, Newport Pharmaceuticals lost nearly $2 million, contrasted with a loss of $254,000 during the same period a year ago.

Revenues were $13.4 million, contrasted with $4.3 million for the first six months of fiscal 1987. Newport Pharmaceuticals projects that increasing revenues will make API marginally profitable later in fiscal 1988, but any earnings are not expected to offset accumulated losses resulting from research and development expenses incurred by the company to complete clinical studies on Isoprinosine.