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

ected by risks related to its agreements with Novartis and LG Life Sciences, competition from other biotechnology and pharmaceutical companies, its effectiveness at managing its financial resources, its ability to successfully develop and market products, difficulties or delays in its preclinical studies or clinical trials, difficulties or delays in manufacturing its clinical trials materials, the scope and validity of patent protection for its products, regulatory developments involving future products and its ability to obtain additional funding to support its operations. Risk factors that may cause actual results to differ are more fully discussed in Anadys' SEC filings, including Anadys' Form 10-K for the year ended December 31, 2006 and Anadys' Form 10-Q for the quarter ended June 30, 2007. All forward-looking statements are qualified in their entirety by this cautionary statement. Anadys is providing this information as of this date and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.

Condensed Consolidated Statements of Operations

Anadys Pharmaceuticals, Inc.

Condensed Consolidated Statements of Operations

(In thousands except per share amounts)

(Unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

2007 2006 2007 2006

Revenues $21,489 $1,145 $23,892 $4,269

Operating expenses

Research and

development (1) 7,602 5,496 21,275 18,978

General and

administrative 2,444 3,097 6,844 7,835

Total operating

expenses (2) 10,046 8,593
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SOURCE Anadys Pharmaceuticals, Inc.
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