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Anadys Pharmaceuticals Reports Third Quarter 2007 Financial Results and Operational Highlights
Date:11/1/2007

erating expenses was non-cash share-based expense of $1.4 million and $2.0 million for the three months ended September 30, 2007 and 2006, respectively.

Net income was $12.3 million for the third quarter of 2007, compared to a net loss of $6.3 million for the third quarter of 2006. The positive nature of our operating results for the third quarter of 2007 was solely attributable to the termination of the ANA975 development program and the resulting recognition of deferred revenue from payments previously received from Novartis. Basic and diluted net income per common share was $0.43 in the third quarter of 2007, compared to net loss per common share of $0.22 for the same period in 2006. Non-cash share-based expense resulted in a $0.05 and $0.07 decrease (increase) in basic and diluted net income (loss) per share for the three months ended September 30, 2007 and 2006, respectively.

Revenues for the nine months ended September 30, 2007 were $23.9 million compared to $4.3 million for the same period in the prior year. Revenues for the nine months ended September 30, 2007 were primarily attributable to the recognition of the remainder of the $20 million up-front payment and the $10 million IND milestone payment, each of which were received from Novartis in 2005. For the nine months ended September 30, 2007, Anadys reported a net loss of $1.4 million compared to a net loss of $19.1 million for the same period last year. The reduction in Anadys' cumulative operating losses for the nine months ended September 30, 2007 compared to the same period in 2006 was almost entirely attributable to the termination of the ANA975 development program and the resulting recognition of deferred revenue from payments previously received from Novartis. Basic and diluted net loss per common share was $0.05 for the nine months ended September 30, 2007, compared to $0.67 for the same period in 2006.

As of September 30, 2007, the Company's cash, cash equivalents and securities
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SOURCE Anadys Pharmaceuticals, Inc.
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