NMS Pharmaceuticals Lists $1.9-Million Loss

NMS Pharmaceuticals Inc. said it lost $1.9 million for its fiscal 1986, ended May 31. The fiscal 1986 loss compares to a net loss of $1.4 million for the prior year. The Newport Beach maker of medical test kits said revenues fell 8% to $2.3 million from $2.5 million.

Company officials said they do not report fourth-quarter results, but controller Janet Moore agreed that, based on a previously reported nine-month net loss of $714,510, NMS lost $1.2 million during its fiscal fourth quarter. That loss would compare to a fiscal 1985 fourth-quarter loss of about $997,000.

Revenues during the fiscal 1986 fourth quarter were about $371,000, up 10% from $336,000 a year earlier.

According to the annual report NMS filed with the Securities and Exchange Commission last month, the fourth-quarter loss included $474,000 set aside as a provision against damages in a 18-month-old lawsuit. The suit was filed in U.S. District Court in Los Angeles by Helena Laboratories, a Texas-based competitor alleging that NMS unfairly obtained and used Helena’s trade secrets in the development of the NMS EZ Detect test for detecting blood in the stool.

Additionally, NMS incurred $236,100 in write-downs during the final quarter. The annual report said the write-downs were related to product lines NMS may discontinue, including the EZ Detect test kit--which would be dropped if Helena wins a court order to prohibit NMS from marketing the kits.