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

this obligation as a contingent liability and updates the liability each quarter.  For the three and nine months ended September 30, 2010, respectively, Alexza recorded a non-cash gain of $8.5 million and $7.3 million compared to a gain of $0.7 million for the three and nine months ended September 30, 2009.  The gain in 2010 reflects the reduction in the estimated probability-weighted cash flows from AZ-004 and the estimated timing of receipt of such cash flows, as a result of the CRL received from the FDA, and the termination of the BLS agreements.  Changes in the calculated fair value of this contingent liability are recognized in earnings in the period of the change in estimates.

Alexza anticipates that with current cash, cash equivalents and marketable securities along with interest earned thereon, the proceeds from option exercises and purchases of common stock pursuant to its Employee Stock Purchase Plan, it will be able to maintain its currently planned operations into the second half of 2011; however the Company is not able to accurately predict its 2011 operating expense levels until after the anticipated meeting with the FDA to discuss the CRL.  Changing circumstances may cause Alexza to consume capital significantly faster or slower than currently anticipated.

About Alexza Pharmaceuticals, Inc.Alexza Pharmaceuticals is a pharmaceutical company focused on the research, development and commercialization of novel, proprietary products for the acute treatment of central nervous system conditions. Alexza's technology, the Staccato® system, vaporizes unformulated drug to form a condensation aerosol that, when inhaled, allows for rapid systemic drug delivery through deep lung inhalation. The drug is quickly absorbed through the lungs into the bloodstream, providing speed of therapeutic onset that is comparable to intravenous administration, but with greater ease, patient comfort and convenience. (Click

SOURCE Alexza Pharmaceuticals, Inc.
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