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

esearch and development expenses were $1.6 million for the fourth quarters of fiscal 2007 and 2006. For the fiscal year, research and development expenses were $7.0 million in fiscal 2007 compared to $6.7 million in 2006. For the fiscal year, the increase was primarily due to increases in employee-related expenses and spending on preclinical studies compared to fiscal 2006. These increases were partially offset by lower spending on outside services and on regulatory filing fees.

Sales and marketing expenses increased to $290,000 for the fourth quarter of fiscal 2007, from $147,000 for the same period in 2006, mainly due to increased spending for sales activities in South Africa. For the 2007 fiscal year, sales and marketing expense increased to $1.4 million compared to $671,000 in fiscal 2006, due to planning activities for Hemopure in the U.K. and increased spending in South Africa.

General and administrative expenses were $1.8 million for the fourth quarter of fiscal 2007 compared to $2.5 million for the corresponding period in 2006 due to lower consulting and legal expenses. For the 2007 fiscal year, general and administrative expenses were $8.2 million for fiscal 2007 compared to $9.3 in fiscal 2006 primarily due to lower consulting, legal and severance expenses and insurance premiums in 2007.

The company recorded a one-time, non-cash impairment charge of $11.3 million in the fourth quarter of fiscal 2007 for an asset consisting of engineering and design of a large-scale manufacturing facility. The adjustment was recorded during the audit of the 2007 financial statements. The company determined this asset was impaired pursuant to the applicable accounting rules, primarily due to continued delays in plans to construct the facility, significant clinical and US regulatory delays and a modification in clinical development strategy. However, if Hemopure is approved for an indication with broad application in a major market, the company believes t
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SOURCE Biopure Corporation
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