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

September 30, 2007, compared to $1.6 million and $5.7 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 increased personnel costs to support Kosan's increasing development activities.

In the fourth quarter of 2007, Kosan announced that Roche and Kosan are concluding their epothilone development and commercialization collaboration. The collaborative research, development and commercialization agreement entered into in September 2002 will terminate in February 2008, following which Kosan will reacquire worldwide rights to its epothilone program and have full control of clinical development of KOS-1584 and its other epothilone product candidates going forward.

At September 30, 2007, cash, restricted cash and marketable securities totaled $81.7 million, compared to $64.1 million at December 31, 2006. Cash used in operating activities was $24.3 million for the nine months ended September 30, 2007.

"Kosan delivered a strong third quarter performance, led by key achievements: the initiation of our TIME-2 clinical trial of our Hsp90 inhibitor tanespimycin in a relapsed-refractory multiple myeloma population; completion of a Special Protocol Assessment with the FDA for our TIME-1 pivotal Phase 3 clinical trial of tanespimycin; the presentation of updated positive Phase 1 data on alvespimycin in HER2-positive metastatic breast cancer; Phase 1 data on the antitumor activity of KOS-1584; our partner Pfizer's initiation of a Phase 1 trial for KOS-2187, being developed as a potential treatment for gastroesophageal reflux disease and other gastrointestinal disorders; and, after the close of the quarter, completion of preparations for initiating a Phase 2 monotherapy trial of our Hsp90 inhibitor alvespimycin in newly-diagnosed patients with HER2-positive metastatic breast cancer, which we anticipate opening for enrollment shortly," said Robert G. Johnson, Jr., M.D., Ph.D., Kosan's
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SOURCE Kosan Biosciences Incorporated
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