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United Therapeutics Reports Third Quarter 2007 Financial Results
Date:11/1/2007

the one-time expense for new intellectual property taken in the first quarter of this year."

Research and Development

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 by major project and non-project components (dollars in thousands):

Three Months

Ended

September 30,

Percentage

2007 2006 Change

Project and non-project:

Cardiovascular $11,761 $6,202 89.6%

Cancer 3,408 2,715 25.5%

Infectious disease 202 181 11.6%

Stock option 3,148 2,145 46.8%

Other 1,040 676 53.8%

Total research and development expense $19,559 $11,919 64.1%

The increase in expenses for the cardiovascular program is primarily attributable to our investigational oral and inhaled development programs, each of which incurred approximately $1.7 million and $3.2 million more expenses, respectively, this quarter than during the same period in 2006. The increase in expenses for the cancer program is primarily related to the development of the manufacturing process for OvaRex MAb, our investigational ovarian cancer therapy, in our laboratory facility in Silver Spring, Maryland.

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SOURCE United Therapeutics Corporation
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