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United Therapeutics Reports First Quarter 2008 Financial Results
Date:5/1/2008

bcutaneously."

Research and Development Expenses

Research and development expenses consist primarily of salaries and related expenses, costs to acquire pharmaceutical products and product rights for development, and amounts paid to contract research organizations, hospitals and laboratories for the provision of services and materials for drug development and clinical trials. The table below summarizes research and development expenses by major project and non-project components (dollars in thousands):

Three Months Ended

March 31,

Percentage

2008 2007 Change

Program:

Cardiovascular $14,485 $9,781 48.1%

Cancer 922 2,891 (68.1)%

Infectious disease 265 145 82.8%

Stock option 3,267 2,572 27.0%

R&D expense from issuance of common stock - 11,013 N/A

Other 2,137 1,712 24.8%

Total research and development expenses $21,076 $28,114 (25.0)%

The increase in cardiovascular expenses in the first quarter of 2008 as compared to the first quarter of 2007 was primarily due to an increase in expenses of approximately $1.2 million and $2.6 million, related to our oral and inhaled treprostinil programs, respectively.

Selling, General and Administrative Expenses

Selling, general and administrative expenses consist primarily of salaries, travel, office, insurance, professional fees, provision for doubtful accounts receivable, depreciation and amortization. The table below summarizes selling, general and administrative
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SOURCE United Therapeutics Corporation
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