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Anadys Pharmaceuticals Reports Third Quarter 2008 Financial Results and Highlights
Date:10/23/2008

ngs derived from Anadys' completed strategic restructuring.

Operating expenses were $9.7 million for the third quarter of 2008, compared to $10.0 million for the third quarter of 2007. Included as a component of Anadys' operating expenses were non-cash, share-based expenses of $0.7 million and $1.4 million for the third quarter of 2008 and 2007, respectively.

The net loss was $9.3 million for the third quarter of 2008, compared to net income of $12.3 million for the third quarter of 2007. Basic and diluted net loss per common share was $0.32 in the third quarter of 2008, compared to net income per common share of $0.43 in the third quarter of 2007. Non-cash share-based expense resulted in a $0.03 increase in basic and diluted net loss per share for the third quarter of 2008 compared to a $0.05 decrease in basic and diluted net income per share for the third quarter 2007.

During the nine months ended September 30, 2008 the Company had no revenue, compared to $23.9 million for the same period in 2007. The revenue recognized in the first nine months of 2007 was primarily derived from the amortization of an upfront payment and a milestone payment under a prior collaboration and the recognition of the previously deferred revenue upon termination of the collaboration. Operating expenses during the nine months ended September 30, 2008 were $25.2 million compared to $28.1 million for the nine months ended September 30, 2007. The decrease in operating expenses was a result of cost savings derived from Anadys' completed restructuring partially offset by increases in development costs for ANA598 and ANA773. For the nine months ended September 30, 2008, Anadys reported a net loss of $23.9 million, compared to $1.4 million for the same period last year. Basic and diluted net loss per common share was $0.83 for the nine months ended September 30, 2008, compared to $0.05 for the same period in 2007.

Recent Development Program Highlights

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SOURCE Anadys Pharmaceuticals, Inc.
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