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Nuvo Research announces 2009 fourth quarter and year-end financial results
Date:2/19/2010

10,727 Net income (loss) $ 22,275 $ (2,413) $ 15,018 $ (10,552) -------------------------------------------------------------------------

Pennsaid FDA Approval

On November 4, 2009, the FDA approved the New Drug Application for Pennsaid permitting it to be sold and marketed in the United States. This approval significantly impacted the Company's fourth quarter results. The quarterly revenue includes $27.3 million in licensing fee revenue comprised of milestone and licensing payments received pursuant to the U.S. Licensing Agreement with Covidien. In addition, the Company incurred several costs directly related to the approval including: $0.1 million, representing a 0.5% royalty payable to Paladin under the terms of its current licensing arrangements ("Royalty Payment") and a $0.5 million milestone payment ("Milestone Payment") related to proprietary research. The net impact of these approval related items is an increase to net income of $26.7 million.

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