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SGX Pharmaceuticals Announces Financial Results for the Three and Nine Months Ended September 30, 2007
Date:11/13/2007

ET program, with submission of the SGX523 IND now expected to take place ahead of schedule," said Mike Grey, President and Chief Executive Officer. "We are continuing to evaluate partnering opportunities for our MET program and remain committed to maximizing the value of this program for SGX and its stockholders while concurrently focusing our energies on submitting the IND in 2007 and initiating clinical studies of SGX523 in early 2008."

Financial Results for the Three and Nine Months Ended September 30, 2007

Total revenues for the three months ended September 30, 2007 were $7.6 million, compared to $6.8 million for the three months ended September 30, 2006. Total revenues for the nine months ended September 30, 2007 were $27.1 million, compared to $19.3 million in the nine months ended September 30, 2006. The increase of $0.8 million for the three month period was primarily attributable to additional revenues associated with the additional expenditures incurred in connection with our federal research grant and additional services provided under other commercial agreements. The increase of $7.8 million for the nine month period was primarily due to additional revenue earned through our collaboration with Novartis, together with the achievement of a milestone, and additional services provided, under other commercial agreements. The increase for the nine month period ended September 30, 2007 also reflects the recognition of revenue in the first quarter of 2007 related to the reimbursement of overhead costs incurred on grant research efforts since the commencement of the grant in July 2005.

Research and development expenses for the three months ended September 30, 2007 and 2006 were $10.5 million and $8.6 million, respectively. Research and development expenses for the nine months ended September 30, 2007 and 2006 were $31.0 million and $35.6 million, respectively. The increase of $1.9 million for the three month period was primarily attributable to
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