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MiddleBrook Pharmaceuticals Reports Second Quarter 2008 Results
Date:8/14/2008

ients the convenience of once-daily dosing while utilizing approximately one-half the amount of amoxicillin currently used. According to prescription data from IMS Health, more than 30 million prescriptions were written for strep throat, pharyngitis and tonsillitis in the U.S. in 2007.

FINANCIAL DETAILS

-- Total revenue, resulting entirely from net Keflex product sales, was $2.5 million in the second quarter of 2008, compared to revenue of $2.4 million in the prior quarter, and $2.7 million for the second quarter of 2007.

-- Operating expenses. Research and development expenses, which primarily consist of salaries, stock-based compensation, and related expenses for personnel and the costs of the Company's clinical trials and research initiatives, were $3.6 million in the second quarter of 2008, compared to $3.7 million in the previous quarter and $5.4 million in the second quarter of 2007. Reduced R&D expenses in the second quarter compared to the prior year resulted mainly from lower personnel and related costs associated with reductions in research staff over the year.

Selling, general and administrative (SG&A) expenses totaled $3.9 million in the second quarter of 2008, down from $4.8 million in the first quarter of 2008, and $6.3 million in the second quarter of 2007. Second quarter SG&A costs declined from the prior periods due to lower third-party costs associated with the reduced size of Company's contract sales force.

-- Loss from operations for the second quarter of 2008 was $5.4 million, down from $6.7 million in the prior quarter and $9.5 million in the second quarter of last year. Reduced operating loss in the quarter resulted primarily from lower operating expenses in the second quarter of 2008 compared to prior periods.

-- Other income and expenses for the second quarter of 2008 included a $1.7 million noncash unrealized gain for the adjustment related to the contractual fair value of warrants issued to Deerfie
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SOURCE MiddleBrook Pharmaceuticals, Inc.
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