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The 2007 results include certain revenues relating to the license,development and commercialization agreement (the "Agreement") closed inDecember, 2007 with King Pharmaceuticals Research and Development, Inc.("King"), a wholly-owned subsidiary of King Pharmaceuticals, Inc. We classifysuch revenues as (i) Program Fee Revenue derived from the non-refundable $30.0million upfront payment received in December, 2007 and which will berecognized ratably over our estimate of the development period for each of theproduct candidates licensed under the Agreement with King; and (ii)Collaboration Revenue from reimbursement of research and development expenses.The 2007 results include the recognition of $3.4 million and $3.0 million ofProgram Fee Revenue and Collaboration Revenue, respectively.
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As of March 1, 2008, the Company had cash and cash equivalents ofapproximately $31 million with no term indebtedness. The majority of our cashreserves will be used to develop additional Aversion(R) Technology productcandidates, prosecute our pending Aversion(R) Technology patent applicationsand for related operating and business development expenses.
The Company's condensed consolidated balance sheet and statements ofoperation appear below. All reported share and per share data have beenadjusted to reflect a one-for-ten reverse stock split effected on December 5,2007. Detailed financial statements are included in the Company's AnnualReport on Form 10-K for the year ended December 31, 2007 filed with theSecurities and Exchange Commission.
2007 Accomplishments and 2008 Expectations
Andy Reddick, President and CEO of Acura said, "In 2007 several of the keystrategic initiatives that we have been focused on for several years resultedin tangible and positive outcomes. We are pleased to report that the Companyis steadily advancing toward our goal of becoming a leading specialtypharmaceutical company focused on addressing the growing societal problem ofprescription drug abuse. 2007 achievements included:
In 2008 we will remain focused on execution of our strategy and amongother things expect to:
About Acura Pharmaceuticals, Inc.
Acura Pharmaceuticals, Inc. is a specialty pharmaceutical company engagedin research, development and manufacture of innovative Aversion(R) (abusedeterrent) Technology and related product candidates.
Forward Looking Statements
This press release contains "forward-looking statements" as defined in thePrivate Securities Litigation Reform Act of 1995. These statements are basedon current expectations of future events. If underlying assumptions proveinaccurate or unknown risks or uncertainties materialize, actual results couldvary materially from our Company's expectations and projections. The mostsignificant of such risks and uncertainties include, but are not limited to,our ability, and the ability of King Pharmaceuticals
