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Neurocrine Biosciences Reports Second Quarter 2011 Results
Date:7/28/2011

o 2011 is due to a full period of revenue recognition under the collaboration agreements with Abbott and Boehringer Ingelheim, for our GnRH and GPR119 programs, respectively. The Company entered into both of these collaboration agreements in June of 2010.

During the second quarter of 2011, the Company recognized $8.6 million of revenue from amortization of up-front licensing fees and $2.9 million in revenue from internal and external research and development expense reimbursement under its Abbott and Boehringer Ingelheim collaboration agreements. This compares to revenue of $2.6 million from amortization of up-front license fees and $1.3 million resulting from internal and external research and development expense reimbursements during the second quarter of 2010.

Revenue recognized from amortization of up-front license fees under the Abbott and Boehringer Ingelheim agreements for the first half of 2011 was $17.0 million compared to $2.6 million in 2010. Sponsored research and development revenue was $6.2 million for the first six months of 2011, compared to $1.3 million for the first half of 2010.

During each of the three and six month periods ended June 30, 2011 and 2010, the Company recognized revenue of $0.7 million and $1.5 million, respectively, from amortization of up-front licensing fees under our collaboration agreement for indiplon with Dainippon Sumitomo Pharma Co. Ltd.

Research and development expenses increased to $8.2 million during the second quarter of 2011 compared to $7.3 million for the same period in 2010. For the six months ended June 30, 2011, research and development expenses were $15.5 million, compared to $14.9 million for the same period last year. The increase in research and development expenses is primarily due to increased personnel and scientific consulting costs. These costs were offset by lower external development costs related to elagolix, as a result of the transition of development work to Abbott.


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SOURCE Neurocrine Biosciences, Inc.
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