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ISTA Pharmaceuticals Reports Third Quarter 2008 Financial Results
Date:10/30/2008

l validation we need before making the decision to initiate Phase III trials with ecabet sodium.

"Finally, we are noticing that the FDA is taking longer to review new study protocols and the number of cataract surgeries this fall is lower than anticipated, which may be linked to the economic slow down. We believe that both of these dynamics are lengthening the enrollment times in our studies. As such, we now expect results from our T-Pred studies in early 2009. With three late-stage products, we believe the upcoming months will be an exciting time for us."

Net Revenue

(in millions, except percentage data)

Quarter Ended Quarter Ended

September 30, 2008 September 30, 2007 % Change

Xibrom $16.2 $11.3 43%

Istalol 3.9 3.0 30%

Vitrase 1.5 1.5 0%

Other 0.1 0.1 0%

Total $21.7 $15.9 36%

Third Quarter Operating Details

Gross margin for the third quarter ended September 30, 2008 was 73%, or $15.9 million, as compared to 74%, or $11.7 million, for the same period in 2007. The change in gross margin as a percentage of revenue is due primarily to an increase in the royalty rate for Xibrom and other costs such as wholesaler distribution agreements. Inventories held by wholesale customers at September 30, 2008 remained relatively unchanged from June 30, 2008.

Research and development expenses were $7.8 million and $8.4 million in the third quarters of 2008 and 2007, respectively. The research and development expenses for the third quarter ended September 30, 2007 included $3.0 million in milestone expenses, of which $2.0 million was associated with an upfront payment paid to Mitsubishi Tanabe f
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SOURCE ISTA Pharmaceuticals, Inc.
Copyright©2008 PR Newswire.
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