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ISTA Pharmaceuticals Reports Fourth Quarter and Full-Year 2008 Financial Results
Date:2/19/2009

0.3 0% Total Net Revenue $83.1 $58.9 41%

Fourth Quarter and Year End Operating Details

Gross margin for the fourth quarter and year ended December 31, 2008, was 74% (or $20.9 million) and 74% (or $61.1 million), respectively, as compared to 72% (or $13.7 million) and 73% (or $43.0 million), respectively, for the same periods in 2007. The change in gross margin for the 2008 periods was due primarily to shifts in revenue mix and price increases.

Research and development expenses for the fourth quarter and year ended December 31, 2008, were $7.3 million and $32.4 million, respectively, as compared to $11.6 million and $32.5 million during the same periods of 2007. Research and development expenses for 2008 of $32.4 million were slightly below management's guidance of $34 to $38 million primarily due to timing of certain clinical trials and milestone payments to partners. Stock-based compensation expenses included in research and development expenses for the fourth quarter and year ended December 31, 2008, were $0.5 million and $1.0 million, respectively.

Selling, general, and administrative expenses for the fourth quarter and year ended December 31, 2008, were $13.4 million and $53.5 million, respectively, as compared to $11.5 million and $46.6 million for the corresponding periods in 2007. The increase in selling, general, and administrative expenses in 2008 as compared to 2007 primarily results from higher sales and marketing expenses, an overall increase in administrative costs primarily legal expenses, and an increase in stock-based compensation expense. Stock-based compensation expenses included in selling, general, and administrative expenses for the fourth quarter and for the year ended December 31, 2008, were $0.7 million and $3.0 million, respectively.

The net loss for the fourth quarter and year ended Decemb
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SOURCE ISTA Pharmaceuticals, Inc.
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