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Nastech Announces Third Quarter 2007 Financial Results
Date:10/29/2007

d to $16.2 million, or $0.77 per share, for the prior year period. The increase in the net loss from the prior year periods is due to a combination of lower revenue and higher spending due to increased clinical activities, headcount growth, and expenses related to research and development projects. The net loss for the prior year nine month period includes a cumulative benefit from the accounting change of adopting SFAS123(R) in January 2006 of approximately $0.3 million reflecting the net cumulative impact of estimating future forfeitures in the determination of period expense for restricted stock awards, rather than recording forfeitures when they occur as permitted prior to 2006.

Research and development expenses for the current quarter increased $3.3 million to approximately $13.8 million as compared to the prior year period and increased $8.4 million to $39.4 million for the nine months ended September 30, 2007 from the prior year period. This year-to-date net increase reflects an actual increase of approximately $12.5 million in R&D expenditures, primarily due to increases in clinical activities, the number of research and development employees and related infrastructure costs. The prior year nine month period included a $4.1 million charge due to in-process R&D expenses related to our acquisition of RNAi intellectual property from Galenea Corp. in the first quarter 2006.

Selling, general and administrative expenses increased $1.6 million to approximately $5.1 million for the current quarter compared to the prior year quarter and increased $4.0 million to approximately $14.5 million for the nine months ended September 30, 2007 from the prior year period, primarily due to increases in patent and legal costs necessary to support our business model as well as our growth.

We ended the third quarter of 2007 with approximately $58.1 million in cash, cash equivalents and investments compared to $51.0 million at December 31, 2006, including $2.2 mill
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SOURCE Nastech Pharmaceutical Company Inc.
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