Arena Pharmaceuticals Announces Second Quarter 2008 Financial Results and Recent and Second Quarter ...(change Commission. These forward-looking...)

Arena Pharmaceuticals, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

Three months ended Six months ended

June 30, June 30,

2008 2007 2008 2007

(unaudited) (unaudited)

Revenues

Contract manufacturing $2,000 $-- $4,019 $--

Collaborative agreements 645 4,811 1,235 9,722

Total revenues 2,645 4,811 5,254 9,722

Operating Expenses

Cost of contract manufacturing 2,290 -- 4,620 --

Research and development 56,410 40,860 103,975 76,615

General and administrative 7,153 6,840 16,014 11,763

Amortization of acquired

technology 384 384 768 768

Total operating expenses 66,237 48,084 125,377 89,146

Interest and other income and

expenses, net (1,677) 4,665 389 8,921

Net loss (65,269) (38,608) (119,734) (70,503)

Dividends on redeemable

convertible preferred stock (546) (524) (1,086) (1,038)

Net loss allocable to common

stockholders $(65,815) $(39,132) $(120,820) $(71,541)

Net loss per share allocable

to common stockholders,

basic and diluted $(0.89) $(0.64)
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