.In addition to the diabetes, morphine and fentanyl programs, we have four additional AERx programs in development, three of which are partner funded.
2.Contract revenues consist of revenue from collaboration agreements and feasibility studies
3Contract and License Revenues: Contract revenues for the three months ended June 30, 2003 increased to $9.4 million from $7.3 million for the same period in 2002. Revenue from Novo Nordisk was $9.3 million for the three months ended June 30, 2003 and $6.6 million for the same period in 2002. The increase in revenue is related to increased reimbursement by Novo Nordisk for clinical supply and product development activities for the ongoing phase 3 clinical program and offset by lower revenue from other funded programs.
4Our next program has been conducted to date with our partner GlaxoSmithKline pursuant to our development agreement, as amended, which covers the use of the AERx Pain Management System for the delivery of narcotic analgesics. Activity in this program has been limited since delivery to GlaxoSmithKline of data from the Phase 2b clinical trials in the second quarter of 2002. We are in a position to move forward with this program and start Phase 3 trials within a year; however, future progress for this program is contingent on either GlaxoSmithKline recommitting to this program or our entering into another development agreement with a new partner.
5.We have four additional programs, three of which are partner-funded programs, including two gene therapy programs. Future research and development efforts for these partner-funded programs are difficult to predict at this time due to their early stage of development.
6.On May 12, 2003, we completed the purchase of certain assets from Weston, a UK public company currently in bankruptcy. Weston’s business involved the design, development, manufacture and exploitation of drug delivery technologies, including a proprietary needle-free injection technology known as “Intraject.” We acquired test and production equipment, intellectual property and other assets associated with Weston’s drug delivery technologies for a cash consideration of $2.0 million. The acquisition was funded out of our working capital.
FROM 10Q |
