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Unigene Reports Third Quarter 2011 Financial Results
Date:11/9/2011

ived upon the subsequent sale of the SDBG patent portfolio by Kieran Murphy, LLC.

Additional Financial Results & NotesRevenue for the three months ended September 30, 2011 was $3.4 million, compared to $2.9 million for the three months ended September 30, 2010.  Despite the continuing decline in Fortical® royalties, due to increased competition in the nasal calcitonin market, revenue for the three months ended September 30, 2011 was up by $0.5 million to $3.4 million from $2.9 million for the same period in 2010, primarily due to increases in Tarsa and GSK development fees and GSK licensing revenue.  Although Fortical sales and royalties for the nine months ended September 30, 2011 declined by $2.6 million compared with the nine months ended September 30, 2010, total Company revenue only declined by $0.4 million to $8.0 million from $8.4 million for the same period.  The offsetting $2.2 million in non-Fortical revenue originated from Tarsa and GSK development fees, and GSK licensing revenue, as well as revenue from feasibility studies and service fees generated by the newly created Biotechnologies Strategic Business Unit.

Operating loss for the three months ended September 30, 2011 increased approximately $0.5 million, or 28%, to $2.3 million from $1.8 million and, for the nine months ended September 30, 2011, increased approximately $1.4 million, or 18%, to $9.0 million from $7.6 million for the corresponding periods in 2010.

Net loss for the three months ended September 30, 2011 increased approximately $2.9 million, or 66%, to $7.3 million from $4.4 million for the corresponding period in 2010. This was primarily due to non-cash items including our loss recognized on the divestiture of SDBG in the amount of $824,000, our write-down of our investment in Tarsa in the amount of $1.3 million, as well as non-cash interest expense of $2.9 million.

Conference Call and Webcast InstructionsUnigene will host a confer
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SOURCE Unigene Laboratories, Inc.
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