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The Quigley Corporation Reports Third Quarter Results, Increases Investment in Pharmaceutical R&D for Diabetic Neuropathy
Date:10/25/2007

ting nutrients, minerals and herbs shown to support proper immune system functioning. Both of these new products are currently being sold in many major market retailers.

Net income for the third quarter ended September 2007 was $1.3 million, or $0.10 per share compared to a net income of $1.1 million, or $0.08 per share, for the same period last year. Net loss for the nine-months ended September 30, 2007 was $4.1 million, or ($0.32) per share, compared to a net loss of $3.0 million, or ($0.25) per share, for the same period last year.

Marginal improvement in net income for the third quarter of 2007 and the increase in net loss for the nine-months ended September 30, 2007 is principally attributed to increased research and development costs for the pharmaceutical segment and a reduction in gross profits from the Health and Wellness operating segment. These increases to net loss were lessened somewhat by improvement in other operating expenses and Cold Remedy gross profits from related increases in net sales.

The increase in research and development costs were associated with Phase II(b) clinical studies for QR-333, an investigational new drug for treating conditions associated with diabetic peripheral neuropathy. Increased research costs associated with QR-333 were $1.2 million for the third quarter ended September 30, 2007 and $2.4 million for the nine months ended September 30, 2007, respectively as compared to 2006.

According to The World Health Organization estimates, more than 171 million people have diabetes worldwide. It is also estimated that 20 million people, representing approximately 7% of the United States population have diabetes of which more than 60% suffer from mild to severe nerve damage due to diabetic peripheral neuropathy. Conditions associated with diabetic peripheral neuropathy include numbness, skin ulcers, constant pain or extreme sensitivity to stimulus.

Net sales for the Health and Wellness segment declined $0.
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SOURCE The Quigley Corporation
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