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Biopure Announces 2008 Third Quarter Financial Results
Date:8/21/2008

also corresponded with regulatory authorities disparaging Hemopure. Notwithstanding the absence in clinical use of the adverse effects for HBOCs noted by the authors, citing the article, one South African state recommended against using Hemopure and an insurer suspended coverage of the product. The Company is in discussions with health agencies in South Africa and other countries to respond to their concerns.

Cost of revenues was $2.4 million for the third fiscal quarter of 2008, compared to $3.1 million for the same period in 2007. Cost of revenues includes costs of both Oxyglobin and Hemopure. Hemopure cost of revenues, consisting primarily of the allocation of unabsorbed fixed manufacturing costs, was $1.6 million for the third fiscal quarter of 2008 compared to $2.5 million for the same period in 2007. During the third fiscal quarter of 2008 the Company took measures to reduce its cash burn, including a 58 % workforce reduction, cutting facilities maintenance costs and curtailment of manufacturing. Oxyglobin cost of revenues was $747,000 for the third fiscal quarter of 2008 compared to $636,000 for the same period in 2007 due mostly to the increase in unit sales mentioned above, partially offset by the cost reductions.

Expenses

Research and development expenses were $914,000 for the third fiscal quarter of 2008 compared to $1.6 million for the same period in 2007. During the third fiscal quarter of 2008 spending on clinical and preclinical trials decreased by $313,000, consulting and outside services decreased by $178,000 and salaries decreased by $111,000 compared to the same period in 2007.

Sales and marketing expenses decreased to $232,000 for the third quarter of fiscal 2008, from $341,000 for the same period in 2007. During fiscal 2007 the Company spent $84,000 in market research for the U.K.

General and administrative expenses were $1.8 million for the third fiscal quarter of 2008 compared to $2.1 million for the same per
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SOURCE Biopure Corporation
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