NeurogesX Reports Second Quarter 20...(ne 30 2009 and 2008 respectively based o...)

Cash, cash equivalents and short-term investments were approximately $13.4 million at June 30, 2009, compared to $18.8 million at March 31, 2009. The Company also recorded a receivable from its collaboration partner, Astellas, in the amount of $48.8 million at June 30, 2009, payment for which was received in July 2009.

Stephen Ghiglieri, CFO, commented, "During the second quarter 2009 we strengthened our balance sheet substantially with upfront payments of approximately $48.8 million due from Astellas. Despite this significant transaction, we will continue to prioritize our cash resources towards achieving U.S. regulatory approval of Qutenza and conducting pre-commercialization activities related to pricing, reimbursement, and detailed market research. We expect that we will begin to invest more heavily, although keeping our conservative focus, in preparatory activities for a potential commercial launch of Qutenza in the United States. In addition, we will commence activities to support Astellas to ensure a successful launch of Qutenza in Europe. We also plan to resume NGX-1998 development with the potential to commence significant activities in this program late this year or early next year. While we are comfortable with our current financial situation, we will continue to evaluate means of supplementing our current resources through a number of financing vehicles to help ensure that we are appropriately capitalized in advance of the potential U.S. launch of Qutenza."

Development Update

Development activities in the quarter consisted of the initiation, full enrollment and completion of the FDA-requested Study C123. Data from Study C123 were submitted to the FDA in late July 2009.

The Company will collaborate with Astellas o
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