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Genaera Corporation Announces Second Quarter Financial Results
Date:8/11/2008

PLYMOUTH MEETING, Pa., Aug. 11 /PRNewswire-FirstCall/ -- Genaera Corporation (Nasdaq: GENR) today announced its financial results for the three- and six-month periods ended June 30, 2008. The net loss for the three-month period ended June 30, 2008 was $4.8 million, or $(0.27) per share basic and diluted, as compared to a net loss of $2.0 million, or $(0.11) per share basic and diluted, for the three-month period ended June 30, 2007. The net loss for the six-month period ended June 30, 2008 was $9.0 million, or $(0.52) per share basic and diluted, as compared to a net loss of $6.2 million, or $(0.35) per share basic and diluted, for the six-month period ended June 30, 2007.

Genaera's research and development expenses for the three- and six-month periods ended June 30, 2008 were $3.5 million and $7.4 million, respectively, compared to $3.1 million and $6.6 million, respectively, for the same periods in 2007. The increase was primarily due to increases in research and clinical costs related to the trodusquemine (MSI-1436) program for the treatment of obesity and type 2 diabetes and increases in stock-based compensation expense. These increases were partially offset by decreases in manufacturing and personnel costs associated with the MSI-1436 program and decreases in clinical, manufacturing, research and personnel expenses as a result of the termination of the squalamine program for the treatment of wet age-related macular degeneration and the LOMUCIN(TM) program for the treatment of cystic fibrosis in 2007.

Genaera's general and administrative expenses for the three- and six-month periods ended June 30, 2008 were $1.4 million and $3.6 million, respectively, compared to $1.6 million and $3.1 million, respectively, for the same
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