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Discovery Labs Reports Third Quarter Financial Results and Progress on Lead Programs
Date:11/10/2011

t in the United States in the first half of 2012 and in the European Union later in 2012.  The Company believes that AFECTAIR has the potential to become a new standard of care for the delivery of inhaled therapies to critical care patients.

"We believe we have made significant progress this past quarter.  We have filed a Complete Response and have a PDUFA date for SURFAXIN, and we have introduced a new product candidate, AFECTAIR.  We believe that both of these products could be introduced commercially in 2012," said W. Thomas Amick, Chairman of the Board and Chief Executive Officer, Discovery Labs.  "We also believe that these results have strengthened our company and potentially position us to realize our goal of improving the standard of respiratory critical care."

Summary Operating Results and Financial Position for the Quarter ended September 30, 2011

For the quarter ended September 30, 2011, the Company reported a net loss of $4.8 million ($0.20 per share) on 24.1 million weighted-average common shares outstanding, compared to a net loss of $6.6 million ($0.51 per share) on 12.9 million weighted-average common shares outstanding for the comparable period in 2010.  Included in the net loss is the change in fair value of certain common stock warrants that are classified as derivative liabilities, resulting in non-cash income of $1.4 million for the quarter ended September 30, 2011 and non-cash expense of $0.4 million for the quarter ended September 30, 2010.

The Company reported an operating loss of $6.2 million for each of the quarters ended September 30, 2011 and 2010.  Excluding non-cash items related to depreciation and stock-based compensation, the operating loss was $5.7 million for the quarter ended September 30, 2011, compared to $5.6 million for the quarter ended September 30, 2010.  The operating loss for the third quarter of 2011 includes costs related to the completion of the c
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SOURCE Discovery Laboratories, Inc.
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