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Biopure Announces 2007 Fourth Quarter and Year-End Financial Results
Date:1/28/2008

hipments of product outright. Hemopure sales increased during the fourth fiscal quarter of 2007 compared to 2006 due to the Company's marketing efforts and increasing use of the product in South Africa.

For the fiscal year, total revenues were $2.6 million, including $2.1 million from sales of Oxyglobin(R), $143,000 from sales of Hemopure(R) and $281,000 from government reimbursements. Revenues in 2006 were $1.7 million, including $1.3 million from Oxyglobin sales, $37,000 from Hemopure sales and $410,000 from government reimbursements. The increase in Oxyglobin sales is due to a higher average selling price in fiscal 2007 compared to fiscal 2006 and to the change in selling arrangement with the European distributor.

Cost of product revenues was $2.6 million for the fourth quarter of fiscal 2007, compared to $2.6 million for the same period in 2006. Cost of product revenues was $11.7 million for fiscal year 2007 and $12.0 million for fiscal year 2006. Cost of product revenues includes cost of both Oxyglobin and Hemopure.

Hemopure cost of revenues, consisting primarily of the allocation of unabsorbed fixed manufacturing costs, was $1.8 million for the fourth quarter of fiscal 2007 and $2.1 million for the same period in 2006. This decrease was largely due to lower depreciation expense related to an impaired asset discussed below. For the fiscal year, Hemopure cost of revenues decreased $604,000 in fiscal 2007 compared to 2006 largely because of an $831,000 greater inventory write-down in 2006 and to lower depreciation expense in 2007.

Oxyglobin cost of revenues was $840,000 for the fourth quarter of fiscal 2007 compared to $534,000 for the same period in 2006. For the fiscal year, Oxyglobin cost of revenues increased to $2.9 million in 2007 compared to $2.7 million in 2006. The increase for the quarter and the fiscal year is largely due to a greater number of units sold in the United Kingdom than were sold in 2006.

Expenses

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SOURCE Biopure Corporation
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