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"We made significant progress in 2007 and have an ambitious agenda for2008," said Novavax Chief Executive Officer Dr. Rahul Singhvi. "By the secondhalf of 2008, we expect to have two vaccines in Phase II clinical trials withtwo additional vaccine candidates in early preclinical development, a rapidadvancement of our vaccine pipeline."
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2007 Financial Results
Revenue from continuing operations, for the fourth quarter ended December31, 2007 was $0.4 million compared to $0.5 million for the same period in2006, a net decrease of $0.1 million due to lower Gynodiol sales in 2007 dueto the discontinued sale of the product in mid 2007, partially offset byhigher contract research revenues due to achievement of certain milestones.Revenue for the full year of 2007 was $1.5 million as compared to $1.7 millionin 2006. The reduction of $0.2 million in revenue was due to lower Gynodiolsales due to discontinuing the sale of the product in mid 2007, partiallyoffset by higher contract research revenues.
There were no costs of products sold in the fourth quarter of 2007 due tothe classification of Estrasorb manufacturing into discontinued operations, aswell as no Gynodiol sales in the fourth quarter of 2007 vs. 2006 cost ofproducts of $50,000.
Research and development costs for the fourth quarter of 2007 were $4.2million compared to $3.1 million in the fourth quarter of 2006. For the fullyear, research and development costs increased 55.4 percent to $17.6 millionin 2007 from $11.3 million in 2006. The increases in both the fourth quarterand full year of 2007 as compared to 2006 were due to higher research anddevelopment spending to support the Company's advancement of its pandemicinfluenza vaccine into human trials, as well as pre-clinical studies for ourseasonal influenza program conducted in 2007. These increases were primarilyfor increased personnel, facility costs and outside expenses (includingsponsored research, clinical research organization costs and consultingagreements) associated with expanded preclinical studies, human trial studycosts, testing and process development, manufacturing and quality-assuranceand quality-control related activities.
General and administrative costs were $2.9 million in the fourth quarterof 2007 as compared to $3.3 million in the prior year. General andadministrative costs for the full year of 2007 were $14.0 million compared to$11.3 million in 2006. General and administrative costs for the 2007 fourthquarter, as compared to the same period of 2006, decreased by $0.4 million dueto lower consulting and legal expenses. Full-year 2007 general andadministrative expenses increased by $2.7 million due to increased leaseexpenses of our new corporate headquarters in Rockville, Maryland, additionalreserves for notes receivables from former board of directors, additional feesrelated to the implementation of FIN 48 and additional personnel costs.
As a result, total losses from continuing operations before interest was$6.7 million and $30.3 million for the fourth quarter and full year of 2007,respectively.
Interest income, net of interest expense was $0.3 million in the four
