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Biodel Reports First Quarter Fiscal Year 2011 Financial Results
Date:2/3/2011

DANBURY, Conn., Feb. 3, 2011 /PRNewswire/ -- Biodel Inc. (Nasdaq: BIOD) today reported financial results for the quarter ended December 31, 2010.

First Quarter Fiscal Year 2011 Financial Results

Biodel reported a net loss for the three months ended December 31, 2010 of $5.3 million, or $0.20 per share, compared to a net loss of $11.1 million, or $0.47 per share, for the same period in the prior year.

Research and development expenses were $5.5 million for the three months ended December 31, 2010, compared to $8.8 million for the same period in the prior year.  The decrease in research and development expenses was primarily due to reductions in clinical and regulatory expenses following the submission of the new drug application (NDA) for Linjeta™ in December 2009 and the awards from the Internal Revenue Service totaling $1.2 million in research grants under the Internal Revenue Service's therapeutic discovery tax credit program in October 2010.  These awards were recorded as a credit against research and development efforts.  The reductions in clinical and regulatory expenses and the research credit were partially offset by a $1.3 million charge related to severance benefit obligations incurred pursuant to the company's employment agreement with Dr. Steiner, our former chief scientific officer, following his retirement in December 2010.  General and administrative expenses totaled $2.6 million for the three months ended December 31, 2010, compared to $2.4 million for the same period in the prior year.  The increase in general and administrative expenses was attributable to personnel expenses.

The company marks-to-market each reporting period the change in fair value of 2.4 million warrants which were issued as part of an August 2010 financing.  For the three months ended December 31, 2010, Biodel reported $2.8 millio
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SOURCE Biodel Inc.
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