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ISTA Pharmaceuticals Reports Second Quarter 2008 Financial Results
Date:8/7/2008

Net Revenue

(in millions, except percentage data)

Quarter-Ended Quarter-Ended

June 30, 2008 June 30, 2007 % Change

Xibrom $13.6 $9.7 40%

Istalol 2.8 2.5 12%

Vitrase 1.3 1.3 0%

Other 0.1 0.1 0%

Total Net Revenue $17.8 $13.6 31%

Second Quarter Operating Details

Gross margin for the second quarter ended June 30, 2008 was 73% (or $13.0 million), as compared to 73% (or $9.9 million) for the same period in 2007.

Research and development expenses for the second quarter ended June 30, 2008 were $7.5 million, as compared to $6.0 million during the same period of 2007. The increase in research and development expenses for 2008 was primarily the result of an increase in clinical development costs, which include clinical investigator fees, study monitoring costs, and data management costs, primarily related to the Company's key products and product candidates: Xibrom, Bepreve, and T-Pred. Stock-based compensation expenses included in research and development expenses for both the second quarter ended June 30, 2008 and the second quarter ended June 30, 2007 were $0.2 million.

Selling, general, and administrative expenses for the second quarter June 30, 2008 were $13.3 million, as compared to $12.0 million for the corresponding period in 2007. The 2008 increase primarily resulted from higher sales and marketing expenses associated with the expansion of ISTA's sales force in the first quarter of 2008 and an increase in corporate legal expense. Stock-based compensation expenses included in selling, general, and administrative expenses for the
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SOURCE ISTA Pharmaceuticals, Inc.
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