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SemBioSys announces second quarter 2008 financial and operational results
Date:8/5/2008

nly to a license fee payment earned from the Company's collaboration agreement with Martek BioSciences Corporation in the first half of 2007 which is partially offset by 2008 product sales revenue from Hydresia(TM) and the option payment received from INDEAR S.A.

Total expenditures for the three and six-month periods ended June 30, 2008 were $6,542,258 and $11,799,869 respectively, compared with $4,046,723 and $7,990,131 for the corresponding periods last year.

Research and development expenses for the three and six-month periods ended June 30, 2008 were $3,357,683 and $6,151,786, compared with $1,924,745 and $3,668,717 for the corresponding periods last year. The difference is primarily related to the shift in the stage of development of the Company from research to preclinical development of two major drug candidates, which requires significant external resources to advance and prepare for the upcoming clinical trials. These include increased contract research organization (CRO) costs, independent third party animal studies, preparation of GMP and cGMP material and other outsourcing costs, as well as increased personnel and the associated support costs and laboratory supplies related to preclinical activity.

General and administrative expenses for the three and six-month periods ended June 30, 2008 were $1,666,323 and $3,061,598 respectively, compared with $1,086,766 and $2,110,477 for the corresponding periods last year. The difference is mainly due to the commercial operations of Botaneco being fully established during 2008 resulting in additional increases in general and administrative costs and legal fees incurred for the Botaneco debenture financing.

Intellectual property costs for the three and six-month periods ended June 30, 2008 were $504,690 and $847,020 respectively, compared with $307,414 and $835,663 for the corresponding periods last year. The difference in costs for the three-month periods is due mainly to an increase in
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SOURCE SemBioSys Genetics Inc.
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