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Kosan Announces Fourth Quarter and Full Year 2007 Financial Results and 2008 Outlook
Date:2/28/2008

icted cash and marketable securities totaled $71.0 million, compared to $64.1 million at December 31, 2006. Cash used in operating activities was $34.7 million for the year ended December 31, 2007.

"Today, Kosan announced a reprioritization of its clinical development portfolio to focus resources on product candidates with the highest near-term therapeutic potential and commercial value for the company," said Helen S. Kim, Kosan's President and Chief Business Officer. "Kosan's top priorities in 2008 are the advancement of the tanespimycin TIME program in multiple myeloma and the tanespimycin metastatic breast cancer clinical program, and the development of epothilone KOS-1584, which is entering Phase 2 in non-small cell lung cancer. We believe that focusing our resources and efforts on these promising later-stage programs now will bring the most benefit to Kosan and its shareholders in the near-term and support our ability to utilize our resources most effectively and to invest in those high-value programs that will be the key value drivers of our company. We enter 2008 with renewed focus, resolve and confidence in our ability to successfully transform these product candidates into meaningful commercial opportunities for our company."

2008 Financial Outlook

Kosan's outlook for 2008 excludes any potential collaborations, strategic alliances or financings Kosan may conclude this year. The Company anticipates that cash used in operating activities will be in the range of $40 million to $50 million.

Conference Call and Webcast Today

Simultaneous with this announcement of Kosan's fourth quarter and full year 2007 financial results, Kosan also announced a reprioritization of its clinical portfolio. Kosan will hold a conference call and webcast today to discuss both of these announcements. Access information is as follows:

Kosan will hold a conference call to discuss the Company's fourth quarter and full year 2007 financial results
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SOURCE Kosan Biosciences Incorporated
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