MIGENIX Reports Second Quarter Fiscal Year 2008 Financi...(1 program costs are net of government as...)

Research and development costs not allocated to programs were $1.4 million in Q2/08 (Q2/07: $1.3 million) and were $2.7 million for YTD Fiscal 2008 (YTD Fiscal 2007: $2.2 million). The approximate $0.5 million increase in these unallocated research and development costs in YTD Fiscal 2008 is spread out across personnel costs (increased headcount initiated last year, particularly with respect to non-clinical work in the celgosivir program) and patent costs (advancement of celgosivir patent applications).

We anticipate that we will make determinations as to which programs to pursue and how much funding to direct to each program on an ongoing basis. We are currently focusing our resources on advancing the development of our non-partnered programs: celgosivir and MX-2401.

General and Corporate Expenses

General and corporate expenses in Q2/08 were $0.8 million (Q2/07: $1.0 million) and were $1.8 million for YTD Fiscal 2008 (YTD Fiscal 2007: $1.8 million). Personnel costs were $0.4 million in Q2/08 (Q2/07: $0.7 million) and were $1.0 million for YTD Fiscal 2008 (YTD Fiscal 2007: $1.2 million).

Amortization

Amortization expense for equipment was $0.1 million in YTD Fiscal 2008 (YTD Fiscal 2007: $0.1 million).

Amortization expense for intangible assets was $0.1 million in YTD Fiscal 2008 (YTD Fiscal 2007: $0.3 million).

Other Income and Expenses

Interest income was $0.3 million for YTD Fiscal 2008 (YTD Fiscal 2007: $0.3 million).

Accretion expense related to the convertible royalty participation units for Q2/08 was $0.4 million (Q2/07: $0.4 million) and is $0.8 million for YTD Fiscal 2008 (YTD Fiscal 2007: $0.7 million). This accretion expense is a non-cash expense resulting from (i) accreting the liability component of the convertible royalty participation units to the maximum royalties payable of $29.5 million (wil
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