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Kosan Announces Third Quarter 2007 Financial Results
Date:11/8/2007

HAYWARD, Calif., Nov. 8 /PRNewswire-FirstCall/ -- Kosan Biosciences Incorporated (Nasdaq: KOSN) today reported financial results for the quarter and nine months ended September 30, 2007.

Net loss for the quarter and nine months ended September 30, 2007 were $11.1 million and $19.2 million, or $0.26 per share and $0.46 per share, compared to a net loss of $7.5 million and $24.9 million, or $0.22 and $0.76 per share, in the same periods last year.

Revenues were $1.9 million and $17.1 million for the quarter and nine months ended September 30, 2007, compared to $2.2 million and $7.8 million in the same periods in 2006. Revenues for the quarter were for development activities under the Roche-Kosan global development and commercialization agreement for epothilones.

Total operating expenses were $14.2 million and $39.4 million for the quarter and nine months ended September 30, 2007, including non-cash stock- based compensation expense of $0.7 million and $2.5 million, respectively, compared to $10.3 million and $34.1 million for the same periods last year. Research and development expenses were $12.3 million and $33.4 million for the quarter and nine months ended September 30, 2007, compared to $8.7 million and $28.4 million in the same periods in 2006. The increase for the quarter compared to the same period in the prior year was primarily due to costs associated with initiating the TIME registration program in multiple myeloma and investment in Kosan's epothilone program, including KOS-1584 process development which was funded by Roche, and development of the next generation epothilone, KOS-1803. General and administrative expenses were $1.9 million and $6.1 million for the quarter and nine months ended
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