Nuvo Announces 2009 second quarter financi...(agreement Covidien assumed responsibilit...),Health

Date:8/7/2009

agreement, Covidien assumed responsibility for all Pennsaid and Pennsaid Plus development activities and costs subsequent to June 15, 2009. The Company also incurred expenditures for preclinical development of the Company's early stage pipeline candidates and costs relating to the expanded research and formulation development activities in San Diego.

SG A expenses increased to $1.8 million and $3.2 million for the three and six months ended June 30, 2009, compared to $1.2 million and $2.3 million for the three and six months ended June 30, 2008. The increase in both periods is primarily attributable to costs relating to US partnering activities that culminated in the signing of the licensing agreement with Covidien and the issuance and revaluation of units in the Company's Deferred Share Unit Plan ("DSU Plan") to their market value.

For the three months ended June 30, 2009, the Company's net loss declined significantly to $1.7 million compared to $2.9 million for the three months ended June 30, 2008. The Company was able to reduce its net loss as lower research and development costs, an increase in licensing fee revenue and a foreign exchange gain more than exceeded increases in SG A costs, higher net interest expense and the lower gross margin on product sales. For the six months ended June 30, 2009, net loss declined by 12% to $4.5 million from $5.1 million.

Cash and cash equivalents increased substantially to $26.3 million as at June 30, 2009 compared to $15.2 million as at December 31, 2008 and $14.2 million at March 31, 2009 primarily as a result of the $US10 million Upfront Payment received from Covidien and proceeds from the exercise of warrants.

Cash used in operations improved to $1.9 million for the quarter ended June 30, 2009 compared to $2.6 million for the quarter ended June 30, 2008. This was primarily attributable to the significantly lower net loss in the quarter. For the six-month period cash used in operations impro
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SOURCE Nuvo Research Inc. Copyright©2009 PR Newswire. All rights reserved

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