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BELLUS HEALTH reports results for first quarter of fiscal 2008
Date:5/5/2008

ed to $397,000 this quarter, compared to $506,000 for the corresponding period the previous year. Research tax credits represent refundable tax credits earned under the Quebec Scientific Research and Experimental Development Program for expenditures incurred in Quebec. The decrease is mainly attributable to lower research and development expenses incurred in Quebec during the current quarter which are eligible for refundable tax credits.

General and administrative expenses totaled $3,314,000 for the current quarter, compared to $3,460,000 for the same quarter the previous year. These costs are incurred to support the overall activities of the Company.

Reimbursable costs amounted to $22,000 for the current quarter, compared to $128,000 for the same period the previous year, and consist of costs incurred on behalf of Centocor in respect of eprodisate (KIACTA(TM))-related activities and reimbursable by Centocor.

Stock-based compensation amounted to $1,035,000 for the current quarter, compared to $923,000 for the corresponding quarter the previous year. This expense relates to stock options and stock-based incentives, whereby compensation cost in relation to stock options is measured at fair value at the date of grant and is expensed over the award's vesting period. The increase is due to new stock options granted during the past year.

Interest income amounted to $498,000 for the current quarter, compared to $613,000 for the same quarter the previous year. The decrease is mainly attributable to lower interest rates prevailing in the markets during the current period, compared to the same periods the previous year. Accretion expense amounted to $1,207,000 for the current quarter, compared to $1,001,000 for the same quarter the previous year.

Accretion expense represents the imputed interest under GAAP on the $42,085,000 aggregate principal amount of 6% convertible senior notes issued in November 2006, as well as on the $4,500,000 balanc
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SOURCE BELLUS Health Inc.
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