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Sunesis Pharmaceuticals Reports Fourth Quarter and Full-Year 2007 Financial Results
Date:3/11/2008

a milestone payment from Johnson &

Johnson Pharmaceutical Research and Development, LLC (J&JPRD) triggered

by J&JPRD's selection of a compound targeting the Cathepsin S enzyme as

a development candidate emerging from a collaboration with Sunesis.

-- Lesley A. Stolz, Ph.D., joined Sunesis in November 2007 as Vice

President, Corporate and Business Development.

Financial Highlights

-- Revenue totaled $2.0 million and $9.7 million, respectively, for the

three months and year ended December 31, 2007, compared to $2.0 million

and $13.7 million for the three months and year ended December 31,

2006. The decrease in revenue year-over-year was primarily due to

lower milestone payments from Merck & Co., Inc. in 2007 compared to

2006.

-- Research and development (R&D) expense was $8.3 million for the fourth

quarter of 2007, compared to $8.5 million for the same period in 2006.

R&D expense for the year ended December 31, 2007 totaled $36.1 million,

compared to $35.6 million in 2006. The year-over-year increase in R&D

expense was primarily due to increased clinical trial activity for SNS-

595 and preclinical program costs, partially offset by lower headcount

and lower R&D expense associated with SNS-032 and SNS-314 due to

reduced research activities in these programs.

-- General and administrative (G&A) expense for the fourth quarter of 2007

was $2.8 million, compared to $3.4 million for the fourth quarter of

2006. For the year ended December 31, 2007, G&A expense was $13.6

million, compared to $12.3 million in 2006. The quarter-over-quarter

decrease primarily resulted from lower professional services expense in

2007 compared to 2006. The year-over-year increase in G&A expense was

primarily due to increased non-cash stock-based compensation expense,
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SOURCE Sunesis Pharmaceuticals
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