SNUS Sonus Pharmaceuticals (MM)

Sonus Pharmaceuticals, Inc. (NASDAQ: SNUS) today highlighted corporate progress and reported financial results for the second quarter of 2007. At 8:30 A.M. PT/11:30 A.M. ET today, Sonus will host its quarterly conference call. �As we move into the second half of 2007, we remain focused on two key strategic objectives, the most important of which is to secure independently-reviewed data from the pivotal Phase 3 trial of TOCOSOL Paclitaxel,� said Michael A. Martino, President and Chief Executive Officer of Sonus Pharmaceuticals. �The results from the Phase 3 trial are still expected to be available by the end of the third quarter. We continue to believe in the opportunity for TOCOSOL Paclitaxel, and our ultimate goal is to bring the potential benefits of this drug to patients and health care providers. We also remain focused on the implementation of the Phase 1 study for TOCOSOL Camptothecin, our second product candidate, with an objective of obtaining preliminary safety and efficacy data by year-end.� Second Quarter 2007 Financial Results For the second quarter of 2007, Sonus reported a net loss of $6.0 million, or $0.16 per share, compared with a net loss of $4.9 million, or $0.14 per share, in the second quarter of 2006. For the first six months of 2007, the Company reported a net loss of $9.2 million, or $0.25 per share, compared with a net loss of $10.2 million, or $0.31 per share, in the same period of 2006. The lower net loss for the first half of 2007 is primarily due to reduced expenses related to the Phase 3 pivotal trial for TOCOSOL Paclitaxel and reduced manufacturing costs for TOCOSOL Paclitaxel as responsibility shifted to Sonus� partner, Bayer Schering Pharma AG, Germany (�Bayer Schering�). These lower expenses also resulted in reduced reimbursement revenue from Bayer Schering. For the second quarter of 2007, the Company recognized $3.3 million in revenue under its collaboration agreement with Bayer Schering, including $1.9 million from reimbursable expenses for work related to the development of TOCOSOL Paclitaxel and $1.4 million for amortization of the upfront license fee that Sonus received under its agreement with Bayer Schering. For the first half of 2007, the Company recognized $8.3 million in revenue under its collaboration agreement with Bayer Schering, including $5.5 million from reimbursable expenses for work related to the development of TOCOSOL Paclitaxel and $2.8 million for amortization of the upfront license fee that Sonus received under its agreement with Bayer Schering. Cash and investments totaled $44.3 million at June 30, 2007. Under current forecasts, the Company has sufficient cash to fund operations through the second quarter of 2008. Conference Call Information The quarterly conference call will be web cast live on August 3 at 8:30 A.M. PT/11:30 A.M. ET and can be accessed at www.sonuspharma.com/events.html. The call will be archived at the same link. A telephone replay will be available on August 3 at 10:30 A.M. PT/1:30 P.M. ET for one week at 800-405-2236 or 303-590-3000 for international calls; Pass code: 11094009. About Sonus Pharmaceuticals Located near Seattle, Washington, Sonus Pharmaceuticals, Inc. is focused on the development of cancer drugs that are designed to provide better efficacy, safety and tolerability, and are more convenient to use. The Company�s lead product candidate, TOCOSOL Paclitaxel, is currently in a Phase 3 pivotal trial for the potential treatment of metastatic breast cancer. Independently-reviewed data from the Phase 3 trial are expected to be available by end of third quarter 2007. TOCOSOL Paclitaxel is an injectable, ready-to-use formulation of paclitaxel that may reduce treatment-limiting side effects and improve anti-tumor activity. In addition to the continuing development of TOCOSOL Paclitaxel, Sonus moved its second product candidate, TOCOSOL Camptothecin, into a Phase 1 clinical trial in September 2006. For additional information on Sonus, including past news releases, please visit www.sonuspharma.com. Safe Harbor Certain statements made in this press release are forward-looking such as those, among others, relating to the development, safety and efficacy of therapeutic drugs and potential applications for these products. As discussed in Sonus Pharmaceuticals� filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for 2006 and subsequent Quarterly Reports on Form 10-Q, actual results could differ materially from those projected in the forward-looking statements as a result of the following factors, among others:�the Company�s products will require extensive clinical testing and approval by regulatory authorities; such approvals are lengthy and expensive and may never occur; risks that the Company will not be able to complete the Phase 3 clinical trial for TOCOSOL Paclitaxel; risks that clinical studies with TOCOSOL Paclitaxel will be delayed or will not be successful; risks that the FDA may not approve the TOCOSOL Paclitaxel New Drug Application; risks that the Phase 1 clinical trial for TOCOSOL Camptothecin will not be successful; risks of successful development of therapeutic drugs; and risks that the Company may not be successful in obtaining funding from third parties or completing a financing necessary to support the costs and expenses of clinical studies as well as research and development activities. The Company undertakes no obligation to update the forward-looking statements contained herein or to reflect events or circumstances occurring after the date hereof. Condensed Statements of Operations (Unaudited) (in thousands, except per share amounts) � Three Months Ended Six Months Ended June 30, June 30, � 2007 � � 2006 � � 2007 � � 2006 � � Collaboration revenue from related party $ 3,271 $ 7,514 $ 8,322 $ 11,567 Operating expenses: Research and development 7,696 11,249 14,636 19,359 General and administrative � 2,128 � � 1,887 � � 4,104 � � 3,656 � Total operating expenses � 9,824 � � 13,136 � � 18,740 � � 23,015 � Operating loss (6,553 ) (5,622 ) (10,418 ) (11,448 ) Other income, net � 590 � � 687 � � 1,229 � � 1,202 � Net loss $ (5,963 ) $ (4,935 ) $ (9,189 ) $ (10,246 ) � Net loss per share: Basic & diluted $ (0.16 ) $ (0.14 ) $ (0.25 ) $ (0.31 ) � Shares used in calculation: Basic & diluted 36,884 34,695 36,869 32,658 Condensed Balance Sheets (in thousands) June 30, December 31, � 2007 2006 (unaudited) Assets: Cash, cash equivalents and marketable securities $ 44,251 $ 58,278 Accounts receivable from related party 5,549 8,044 Other current assets 1,073 524 Property and equipment, net 1,322 1,186 Other assets � 445 � � 461 Total assets $ 52,640 � $ 68,493 � Liabilities and stockholders' equity: Accounts payable $ 142 $ 898 Accounts payable with related party 1,770 � 1,473 Accrued expenses 7,099 � 11,928 Other current liabilities -- � 65 Deferred revenue from related party 8,314 � 11,087 Stockholders' equity � 35,315 � � 43,042 Total liabilities and stockholders' equity $ 52,640 � $ 68,493