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Arena Pharmaceuticals Announces Second Quarter 2008 Financial Results and Recent and Second Quarter Highlights
Date:8/5/2008

licensing opportunities for our programs."

Research and development expenses totaled $56.4 million in the second quarter of 2008, compared to $40.9 million in the second quarter of 2007. Research and development expenses in the first half of 2008 totaled $104.0 million, compared to $76.6 million in the first half of 2007. This increase in research and development expenses is primarily attributable to increased clinical trial costs related to the Phase 3 clinical program for lorcaserin hydrochloride, Arena's drug candidate for the treatment of obesity, and the APD125 Phase 2b trial for the treatment of insomnia. Research and development expenses in the first half of 2008 included $2.2 million in non-cash, share-based compensation expense, compared to $2.1 million in the first half of 2007. General and administrative expenses totaled $7.2 million in the second quarter of 2008, compared to $6.8 million in the second quarter of 2007. General and administrative expenses in the first half of 2008 totaled $16.0 million, compared to $11.8 million in the first half of 2007. This increase in general and administrative expenses is primarily attributable to increases in personnel-related expenses and patent costs. Total patent costs, including patent costs related to partnered programs, increased by $1.1 million in the first half of 2008 compared to the first half of 2007, while total personnel-related expenses increased by $1.4 million between these same periods. General and administrative expenses in the first half of 2008 included $2.1 million in non-cash, share-based compensation expense, compared to $2.0 million in the first half of 2007.

Interest and other income and expenses, net, in the second quarter and first half of 2008 included a $2.0 million non-cash charge as a reserve for a contingent liability for the possible settlement of a disagreement with one of Arena's two warrant holders from its series B redeemable convertible preferred stock financing. A
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SOURCE Arena Pharmaceuticals, Inc.
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