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For the year ended December 31, 2007, Amarin reported a net loss of $38.2million or $3.90 per share, compared with a net loss of $26.8 million or$3.25 per share for the year ended December 31, 2006. The increase in netloss for the year is primarily due to the previously announced write-off ofthe Miraxion intangible asset of $8.8 million in the second quarter of 2007,reorganization costs and higher share-based compensation costs, partly offsetby a reduction in research and development costs.
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The net loss per share amounts reflect the one-for-ten reverse stocksplit which took effect on January 18, 2008. Figures for the comparativeperiods have been restated to International Financial Reporting Standards("IFRS"). For further information with respect to the application of IFRS toour accounts, please refer to our 2007 IFRS Annual Report on Form 20-F filedwith the United States Securities and Exchange Commission ("SEC") on May 19,2008 and our IFRS transition document which was furnished to the SEC on Form6-K and is available on the Company's website.
Three months ended December 31, 2007
For the quarter ended December 31, 2007, Amarin's operating loss was $7.7million, compared with an operating loss of $6.7 million for the same periodin 2006. The increase for the fourth quarter compared to the correspondingperiod in 2006 is primarily due to reorganization costs of $1.9 millionassociated with the departure of our former chief executive officer and thecosts associated with the planned closing of Amarin's offices in London plushigher share-based compensation costs, partly offset by a reduction inresearch and development expenditure.
Research and development costs for the fourth quarter 2007 were $1.7million, reflecting third-party research contract costs, staff costs,preclinical study costs, clinical supplies and the costs of conductingclinical trials. The decrease of $2.2 million for the fourth quarter of 2007from the comparative period in 2006 is primarily due to the completion of thePhase III trials in Huntington's disease in early 2007. Research anddevelopment costs for the fourth quarter primarily represent expenditures onAmarin's two Parkinson's disease programs, its epilepsy and memory programsand the initiation of its new cardiovascular disease program.
Selling, general and administrative costs primarily represent Amarin'sgeneral corporate overhead, the Company's substantial investment inintellectual property and the business and corporate development costs ofpursuing its growth strategy, including the costs of evaluating potentialin-licensing and acquisition opportunities. Selling, general andadministrative costs for the fourth quarter 2007 of $3.2 million increased by$0.7 million when compared to the same period in 2006. This increase isprimarily due to increased personnel and administrative costs.
Non-cash share-based compensation expense increased $0.4 million to $0.9million when compared to the same period in 2006. This increase was due tooptions granted since the end of the comparative period.
Twelve months ended December 31, 2007
For the twelve month period ended December 31, 2007, Amarin reported anoperating loss of $40.7 million, compared with an operating loss of $28.1million for the comparative period in 2006. The 2007 increase in operatingloss compared with 2006 is mainly due to the $8.8 million impairme
