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Anadys Pharmaceuticals Reports Fourth Quarter and Year-End 2008 Financial Results and Highlights
Date:2/26/2009

nd ($478) as an offset in research and development expense, which represents an estimate of the net reimbursement by Novartis of ANA975 research and development costs for the twelve months ended December 31, 2008 and 2007, respectively. (2) Includes non-cash operating expenses of $699 and $615 determined in accordance with Statement of Financial Accounts Standards No. 123(R), "Share-Based Payment" (SFAS No. 123(R)) or approximately $0.02 effect on basic and diluted net loss per common share for the three months ended December 31, 2008 and 2007, respectively. Research and development expense and general and administrative expense includes $323 and $376 of non-cash operating expenses determined in accordance with SFAS No. 123(R) for the three months ended December 31, 2008. Includes non-cash operating expenses of $2,763 and $4,113 determined in accordance with Financial Accounts Standards Board Statement 123(R), "Share-Based Payment" or approximately $0.10 and $0.14 effect on basic and diluted net loss per common share for the twelve months ended December 31, 2008 and 2007, respectively. Research and development expense and general and administrative expense includes $1,271 and $1,492 of non-cash operating expenses determined in accordance with SFAS No. 123(R) for the twelve months ended December 31, 2008.

                             Anadys Pharmaceuticals, Inc.
                        Condensed Consolidated Balance Sheets
                                   (In thousands)

                                             December 31,      December 31,
                                                 2008              2007
                                             (Unaudited)         (Audited)
                    Assets

  
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SOURCE Anadys Pharmaceuticals, Inc.
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