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MIGENIX Reports First Quarter Fiscal Year 2008 Financial Results

rea. The Company is evaluating its facility options and should it not locate suitable replacement premises or make alternative arrangements on a timely basis, portions of the Company's operations may be interrupted.


For the three months ended July 31, 2007 ("Q1/08"), MIGENIX incurred a loss of $3.1 million or $0.03 per common share, compared to a loss of $2.5 million or $0.03 for the three months ended July 31, 2006 ("Q1/07"). The increase in the Q1/08 loss compared to the Q1/07 loss is principally attributable to: (i) a $0.4 million increase in research and development expenses (see "Research and Development" below); (ii) a $0.2 million increase in general and corporate expenses (see "General and Corporate" below; (iii) a $0.1 million increase in the accretion of the convertible royalty participation units (see "Other Income and Expenses" below); less: (iv) a $0.1 million decrease in amortization expense (see "Amortization" below).


During Q1/08 the Company had nominal (< $0.1 million) research and development collaboration revenue (Q1/07: $nil). This research and development collaboration revenue is pursuant to the sale of omiganan drug substance to Cutanea Life Sciences.

Research and Development Expenses

The following table summarizes our research and development expenses for the periods indicated:

Three months Financial years

ended July 31 ended April 30

2007 2006 2007 2006

Program Expenses Canadian dollars, millions

Omiganan 1% gel (partnered) 0.0 0.0 0.0 0.0

Omiganan for dermatological

diseases (partnered) 0.0 0.0 0.0 0.0

Celgosivir 0.4 0.4 1.5 2.1


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