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Therapeutic DNA Vaccine Company Inovio Biomedical Reports Second Quarter 2008 Financial Results
Date:8/7/2008

d June 30, 2008 was $459,000 and $919,000, respectively, as compared to $286,000 and $534,000, respectively, for the same periods in 2007. The increase in revenue under collaborative research and development arrangements during the three and six months ended June 30, 2008, compared with the same periods in 2007, was primarily due to an increase in Wyeth billings based on our collaborative agreement, offset by slightly lower Merck collaborative research billings. Billings from research and development work performed pursuant to the Wyeth and Merck agreements are recorded as revenue when the related research expenditures are incurred.

There was no grant and miscellaneous revenue for the three and six months ended June 30, 2008, compared with $0 and $21,000, respectively, for the three and six months ended June 30, 2007. The decrease in grant and miscellaneous revenue was due to no revenue being recognized from the U.S. Army grant due to completion of the defined project.

Operating Expenses

Research and development expenses for the three and six months ended June 30, 2008 were $1.7 million and $3.3 million, respectively, as compared to $2.9 million and $5.4 million for the three and six months ended June 30, 2007, respectively. The decrease in research and development expenses for the three and six months ended June 30, 2008, compared with the same periods in 2007, was primarily due to a decrease in SECTA clinical trial expenses associated with patient enrollment, clinical site costs, data collection and monitoring costs, and costs related to the use of outside Clinical Research Organizations ("CROs") and Clinical Research Associates ("CRAs"). Some of this decrease was offset by higher costs associated with the expansion of our in-house engineering and research resources relating to DNA vaccine research activities.

General and administrative expenses, which include business development expenses and amortiz
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