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Pharmion Corporation Announces 2007 Operating Results
Date:2/19/2008

announced in August, the increasing uptake of Vidaza for European named patient and compassionate use that fueled Vidaza sales growth during the year, as well as significant progress in clinical research across our product portfolio, including the initiation of clinical studies for Amrubicin, MGCD0103 and oral Azacitidine."

2007 Financial Highlights

Pharmion reported a net loss of $(63.9) million, or $(1.81) per share for the year ended December 31, 2007, and a net loss of $(27.5) million, or $(0.74) for the fourth quarter of 2007. These losses include $8.6 million of expenses incurred in connection with the Company's pending acquisition by Celgene Corporation announced in November 2007 as well as charges for stock compensation expense of $5.7 million for 2007 and $1.5 million for the fourth quarter of 2007. In addition, the losses for year ended December 31, 2007 include a charge of $8 million for a milestone payment triggered by the acceptance of Pharmion's marketing authorization application (MAA) for Satraplatin for the treatment of second-line hormone-refractory prostate cancer by the European Medicines Agency (EMEA).

Research and development expenses totaled $102.4 million and $30.4 million for the full year and fourth quarter of 2007, respectively. These amounts compare to research and development expenses for the full year and fourth quarter of 2006 of $70.1 million and $20.0 million, respectively. The increase in R&D spending for 2007 was expected and was due primarily to development expenses incurred for the initiation of Phase 2 and 3 studies in small cell lung cancer (SCLC) for Amrubicin, the initiation of Phase 1 and 2 studies in solid tumors and chronic lymphocytic leukemia (CLL) for MGCD0103, the opening of centers and enrolling of patients in the dose escalation study for oral Azacitidine and the initiation of our research collaboration program with MethylGene Inc. targeting sirtuin inhibitors.

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