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Pharmacopeia Announces Third Quarter 2007 Financial Results
Date:11/1/2007

eriod was largely due to research revenue recorded from Pharmacopeia's alliances with Cephalon, GSK and Wyeth.

Collaborative research and development expense increased 67% to $5.8 million in the three months ended September 30, 2007, compared to $3.4 million in the three months ended September 30, 2006. This increase was due to increased resources allocated to Pharmacopeia's alliance with GSK, coupled with resources expended on the company's JAK3 program. The expense for the JAK3 program has been primarily classified as collaborative research and development expense since the company partnered the program with Wyeth in December 2006. Prior to 2007, resources expended on the company's JAK3 program were classified as proprietary research and development expense. For the nine months ended September 30, 2007, collaborative research and development expense increased 71% to $16.7 million, compared to $9.8 million for the same period in 2006. This increase was due to increased resources allocated to Pharmacopeia's alliances with Cepahlon, GSK and Wyeth.

The company incurred proprietary research and development expense of $9.5 million in the quarter ended September 30, 2007, compared to $5.8 million in the same period in 2006, an increase of 64%. For the nine months ended September 30, 2007, proprietary research and development expense increased to $22.0 million, compared to $17.6 million for the same period in 2006, an increase of 25%. These increases related primarily to costs for clinical trials for PS433540, including milestone payments to BMS of $2.0 million and $3.0 million, in the three- and nine-month periods ended September 30, 2007, respectively. These increases were offset by the reclassification of costs incurred on the company's JAK3 program since partnering the program with Wyeth.

General and administrative expense was $2.6 million for the quarter ended September 30, 2007, compared to $2.1 million for the same period in 2006, an increase of 2
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SOURCE Pharmacopeia
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