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Gen-Probe Reports Strong Financial Results for Fourth Quarter and Full Year 2008
Date:2/17/2009

product sales by $0.9 million and reduced gross margin on product sales by approximately 0.9%. For the full year 2008, gross margin on product sales was 70.2%, compared to 67.7% in the prior year. This increase resulted primarily from the factors discussed above.

Research and development (R&D) expenses in the fourth quarter of 2008 were $24.2 million, essentially unchanged from $24.3 million in the prior year period. For the full year 2008, R&D expenses were $101.1 million, compared to $97.1 million in the prior year, an increase of 4% that resulted primarily from costs associated with key development programs such as the post-marketing studies of the PROCLEIX ULTRIO assay in the United States, the investigational APTIMA human papillomavirus (HPV) assay, and Gen-Probe's fully automated instrument system for low- and mid-volume labs, known as PANTHER.

Marketing and sales expenses in the fourth quarter of 2008 were $11.8 million, compared to $11.3 million in the prior year period, an increase of 4% that resulted primarily from European market development efforts related to the Company's APTIMA Combo 2, APTIMA HPV and PROGENSA(TM) PCA3 assays. For the full year 2008, marketing and sales expenses were $45.9 million, compared to $39.9 million in the prior year, an increase of 15% that also resulted from European market development efforts.

General and administrative (G&A) expenses in the fourth quarter of 2008 were $13.8 million, compared to $12.3 million in the prior year period, an increase of 12% that resulted primarily from increased business development, legal and compensation costs. For the full year 2008, G&A expenses were $52.3 million, compared to $47.0 million in the prior year, an increase of 11% that resulted primarily from the factors described above.

Total other income in the fourth quarter of 2008 was $3.8 million, compared to $3.7 million in the prior year period
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SOURCE Gen-Probe Incorporated
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