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Alexza Pharmaceuticals Reports 2010 Third Quarter Financial Results and Provides Business Update
Date:11/9/2010

a.

GAAP operating expenses were $9.3 million and $34.0 million in the three and nine months ended September 30, 2010, respectively, compared to operating expenses of $13.0 million and $46.2 million in the same periods in 2009, respectively.  Research and development expenses were $6.7 million and $22.5 million in the three and nine months ended September 30, 2010, respectively, compared to $9.2 million and $32.2 million in the same periods in 2009, respectively.  The decrease in research and development expenses for the periods was primarily due to Alexza's restructuring announced in January 2009, at which time the Company reduced headcount by approximately 33% and focused its resources on the activities to support the AZ-004 NDA filing.  The 2010 results were also impacted by the reversal of accrued compensation and share-based compensation related to the 2010 bonus plan.  These bonus amounts were originally accrued assuming approval of the NDA for AZ-004 during 2010, and such amounts are no longer considered probable for payout in 2010.

General and administrative expenses were $2.6 million and $11.5 million in the three and nine months ended September 30, 2010, respectively, compared to $3.8 million and $11.9 million for the same periods in 2009, respectively.  The 2010 amounts were also impacted by the reversal of accrued compensation and share-based compensation related to the 2010 bonus plan.  These bonus amounts were originally accrued assuming approval of the NDA for AZ-004 during 2010, and such amounts are no longer considered probable for payout in 2010.

In connection with the acquisition of Symphony Allegro, Inc. in August 2009, Alexza is obligated to pay the former Symphony Allegro shareholders certain percentages of cash payments that may be generated from collaboration transactions for AZ-002 (Staccato alprazolam), AZ-004 or AZ-104 (Staccato loxapine, low-dose).  The Company records
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SOURCE Alexza Pharmaceuticals, Inc.
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