Pharmaxis [ASX: PXL] ended FY08 in a strong cash position despite large R&D-related losses for the financial year.

At the end of FY08 Pharmaxis had $112 million in the bank, significantly higher than the $76 million cash position the company reported in 2007.

But the company posted a loss of around $20 million for the financial year, largely due to research and development costs.

This R&D spend includes two projects currently progressing their way through clinical trials.