Flamel Technologies total revenues up $9.9 million in the third quarter 2009

Flamel Technologies (Nasdaq:FLML) today announced its financial results for the third quarter of 2009. Highlights in the third quarter included:

• Significant technical and preclinical success in moving forward with our existing projects.
• the signing of two further projects, one for Medusa^® for potentially multiple molecules, and the other for a Micropump^® formulation; and
• an increase in the Company’s cash and marketable securities from $45.1 million at the end of the first quarter to $48.8 MM.

Stephen H. Willard, Flamel’s chief executive officer, commented, “In addition to our continued success in attracting new projects and new partners, we are reaching a stage where many of our existing projects are generating positive results. This is important as they will create the opportunities to move these formulations forward through the regulatory pipeline. ”

“This success is seen not only with delivery of proteins and peptides, but also with the expansion into a variety of other types of therapeutic agents. We are demonstrating the ability to show in vivo success with therapies other than subcutaneous injection, as most recently demonstrated in our recent agreement with Pfizer regarding intravenous delivery using our Medusa® technology.”

“Flamel is currently working on multiple projects, including those with GSK, Merck Serono, Pfizer, and Baxter. We are diversified across both new and existing molecules, in a variety of therapeutic areas. While we will continue to seek new partners and new applications, I expect the focus increasingly to shift to the success and ramp-up of some of our most promising existing programs.”

Flamel reported total revenues in the third quarter 2009 of $9.9 million, up from $9.1 million in the year-ago period. License and research revenues grew to $4.7 million versus $3.1 million in the third quarter of 2008. Product sales and services totaled $2.7 million during the quarter versus $3.0 million in the third quarter, 2008. Other revenues during the third quarter of 2009, including royalties on the sale of Coreg CR™, were $2.5 million versus $3.0 million in the year-ago period.

Costs and expenses during the third quarter of 2009 were $(15.0) million versus $(13.8) million in the year-ago period. Costs of goods and services sold in the quarter remained constant at $(2.6) million for the third quarter of both 2008 and 2009. Research and development expenses were $(9.3) million versus $(8.2) million in the third quarter of 2008. SG&A increased to $(3.1) million from $(2.9) million in the year-ago period.

Net loss in the third quarter of 2009 was $(3.4) million, compared to a net loss of $(2.3) million in the third quarter of 2008. Net loss per share (basic) for the third quarter of 2009 was ($0.14), compared to a net loss per share (basic) in the year-ago period of ($0.10).

Cash and marketable securities at the end of the third quarter totaled $48.8 million versus $45.1 million at the end of the second quarter, 2009. This marked the fourth consecutive quarter that the Company increased its cash and marketable securities position.

For the nine months of 2009, Flamel reported total revenues of $31.5 million versus $29.2 million in the first nine months of 2008. License and research revenues during the period were $16.2 million versus $9.8 million in the year-ago period. Product sales and services during the first nine months of 2009 were $7.6 million versus $10.9 million in the first nine months of 2008. Other revenues during the first nine months of 2009 were $7.8 million versus $8.4 million in the year-ago period.

During the first nine months of 2009, total costs and expenses declined to $(42.2) million, from $(44.4) million in the year-ago period. Costs of goods and services sold in the first nine months of 2009 totaled $(6.5) million versus $(7.3) million in the year-ago period. Research and development expenses during the first nine months of 2009 were $(26.3) million versus $(26.5) million during the year-ago period. SG&A for the first nine months of 2009 amounted to $(9.4) million versus $(10.7) million in the year-ago period.

Net loss in the first nine months of 2009 was $(5.7) million, compared to a net loss of $(9.4) million in the first nine months of last year. Net loss per share (basic) for the first nine months of 2009 was $(0.24), compared to net loss per share (basic) in the year-ago period of $(0.39).