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Financial Results for Full Year 2008: NicOx in a Unique Position to Deliver Significant Shareholder Value
Date:2/26/2009

ganizations and suppliers involved in naproxcinod's clinical development and manufacturing activities. At this time, the cost of sales corresponds to the expenses incurred by NicOx in performing research activities under the contracts signed with Pfizer and Merck. On December 31, 2008, the Company employed 97 people in research and development, compared to 84 people at the same date in 2007.

In 2008, administrative and selling expenses totaled EUR11.4 million compared to EUR11.3 million in 2007. General and administrative expenses were EUR6.6 million in 2008 compared to EUR6.8 million in 2007 and include personnel expenses in administrative and financial functions, as well as the remuneration of corporate officers, including stock option, bonus share and warrant attributions. In 2008, selling expenses totaled EUR4.8 million, compared to EUR4.5 million in 2007, and correspond to the market analysis activities for naproxcinod, as well as the business development and communication activities of the Company. The Company anticipates a significant increase in its selling expenses in the future, due to activities linked to the commercial launch preparation for naproxcinod. On December 31, 2008, the Company employed 36 people in its selling, general, and administrative departments, compared to 33 people on December 31, 2007.

Other income

Other income totaled EUR3.8 million in 2008, compared to EUR3.9 million in 2007. Other income corresponds mainly to the operational subsidies from the research tax credits which were previously deducted from research and development expenses until December 31, 2007.

Operating result

In 2008, the operating loss totaled EUR79.2 million, compared to EUR37.2 million in 2007. This situation is explained by the considerable increase in operating expenses during 2008 and by the significant decrease in revenues recognized in 2008 as indicated above.


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