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IDM Pharma Reports Third Quarter 2007 Financial Results
Date:11/8/2007

sed by sanofi-aventis.

Research and development expenses were $6.4 million and $5.3 million for the three months ended September 30, 2007 and September 30, 2006, respectively. The increase during the 2007 period was primarily due to an increase in spending of $2.1 million related to clinical development, regulatory filings and manufacturing of L-MTP-PE, and clinical development of UVIDEM. The increase was partially offset by a $0.4 million reduction in spending associated with development activities related to products currently on hold, as well as a $0.8 million reduction associated with lower headcount and termination of a lease agreement for certain of the Company's Paris facilities.

Selling, general and administrative expenses were $2.7 million and $1.8 million for the three months ended September 30, 2007 and 2006, respectively. The increase of $0.9 million in 2007 included $0.3 million of bonus accruals, $0.2 million of stock compensation expense and $0.2 million of consulting and salary expense.

Net interest income was $3.1 million for the three months ended September 30, 2007, as compared to net interest income of $0.1 million for the three months ended September 30, 2006. During the quarter ended September 30, 2007, the Company recognized $0.4 million of interest income associated with its investments and a $2.7 million reduction in non-cash interest expense for the net decrease in the fair value of warrants issued in connection with the February and June 2007 financings.

The foreign exchange loss was $0.8 million in the third quarter of 2007, compared to a foreign exchange gain of $0.2 million in the third quarter of 2006. The increase in 2007 was due to higher spreads between the value of the U.S. dollar and the Euro compared to the prior year as the dollar denominated inter-company loan between the Company's subsidiaries is revalued each quarter based on changes in the value of the dollar versus the Euro, with all related changes
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SOURCE IDM Pharma, Inc.
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