BELLUS Health reports results for first half of f...(nd retail customers. This price adjustme...),Health

Research and development expenses, before research tax credits and grants, amounted to $2,869,000 for the current quarter ($6,479,000 for the six-month period), compared to $7,123,000 for the same period the previous year ($15,903,000 for the six-month period). The decrease is mainly attributable to a reduction in the research and development activities and associated workforce. The Company is currently developing NC-503 (eprodisate) for the treatment of Type II diabetes and certain features of metabolic syndrome. During the second quarter of 2008, a 26-week, double-blind, placebo-controlled Phase II clinical trial in diabetic patients was initiated in Canada and patient recruitment is concluded. The Company has revised the expected timing of the announcement of results for the Phase II clinical trial; rather than release interim results in the second half of 2009, the Company will provide final results upon completion of the study. The release of such final results is expected in the first quarter of 2010. Results from a validated rat model of diabetes and metabolic syndrome have demonstrated that NC-503 decreases glycemic levels in obese diabetic Zucker rats, when compared to the control group, while preserving 40% more pancreatic islet cells (insulin secreting cells) as compared to the control group, and have shown some protective effect on renal function.

Research tax credits and grants amounted to $154,000 for the current quarter ($457,000 for the six-month period), compared to $467,000 for the corresponding period the previous year ($864,000 for the six-month period). 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 attributable to lower
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