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SGX Pharmaceuticals Announces Financial Results for the Three and Six Months Ended June 30, 2008
Date:8/7/2008

since the commencement of the grant in July 2005.

Research and development expenses for the three months ended June 30, 2008 and 2007 were $9.2 million and $10.5 million, respectively. Research and development expenses for the six months ended June 30, 2008 and 2007 were $20.6 million and $20.5 million, respectively. The decrease of $1.3 million for the three month period was primarily attributable to a decrease in preclinical and clinical costs incurred in connection with the research and development activities of our oncology pipeline. Research and development expenses for the six month periods were generally consistent from period to period.

General and administrative expenses for the three months ended June 30, 2008 and 2007 were $2.3 million and $2.1 million, respectively. General and administrative expenses for the six months ended June 30, 2008 and 2007 were $4.4 million in each period. The increase of $0.2 million for the three month period was primarily attributable to an increase in legal and professional fees offset by a decrease in share-based compensation expense.

SGX reported a net loss for the three months ended June 30, 2008 of $7.2 million, or $0.35 per share. This compares with a net loss for the three months ended June 30, 2007 of $4.0 million, or $0.26 per share. For the six months ended June 30, 2008, the net loss was $3.5 million, or $0.17 per share. This compares with a net loss for the six months ended June 30, 2007 of $5.1 million, or $0.33 per share. The net loss for the six months ended June 30, 2008 is less than the net loss for the three months ended June 30, 2008 due to the Company's reporting net income in the first quarter of 2008 as a result of the $10.8 million of revenue earned in the first quarter that was attributable to the one-time recognition of the remaining portion of the upfront payment related to the Company's collaboration with Novartis.

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