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Transition Therapeutics Announces Third Quarter Fiscal 2009 Financial Results
Date:5/13/2009

nses. The increase in net loss is also attributed to decreases in revenue, interest income and gain on note receivable. The increase in net loss was partially offset by foreign exchange gains resulting from the Company's US dollar investments.

Research and Development

Research and development expenses increased $112,370 from $3,780,429 for the three-month period ended March 31, 2008 to $3,892,799 for the three-month period ended March 31, 2009. For the nine-month period ended March 31, 2009, research and development expenses increased $3,786,306 to $12,812,657 from $9,026,351 for the same period in fiscal 2008. For the three and nine-month periods ended March 31, 2009, these increases were primarily the result of significant increases in clinical development costs due to the ongoing Phase II ELND005 (AZD-103) trial, preclinical costs associated with advancing the family of compounds acquired in the NeuroMedix transaction, and increased drug development costs.

During the three-month period ending March 31, 2009, the Company incurred decreased direct clinical program expenses relating to the TT-223 program. However, during the nine-month period ended March 31, 2009, these costs increased significantly. In light of the reimbursement of costs from Lilly, there was an overall decrease in the program costs for the three and nine-month periods ended March 31, 2009.

General and Administrative

During the three-month period ended March 31, 2009, general and administrative expenses increased $155,321 to $1,611,629 from $1,456,308 for the same period in fiscal 2008. For the nine-month period ended March 31, 2009, general and administrative expenses increased $488,763 to $4,783,451 from $4,294,688 for the same nine-month period in fiscal 2008. The increases in general and administrative expenses for the three and nine-month periods ended March 31, 2009 are due to increased stock option expenses, salaries
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