Gross research and development expenses amounted to $871,872 for the quarter ended April 30, 2010, compared to $2.9 million for the quarter ended April 30, 2009. Gross research and development expenses amounted to $2.2 million for the six-month period ended April 30, 2010, compared to $7.1 million for the six-month period ended April 30, 2009. The decrease is due to an important decline of development activities due to the completion of the Phase IIa clinical trials for PC-DAC(TM):Exendin-4 in November 2008 and to a reduction in research activities as explained above.

General and administrative costs amounted to $1.2 million for the quarter ended April 30, 2010, compared to $1.5 million for the quarter ended April 30, 2009. General and administrative costs amounted to $1.9 million for the six-month period ended April 30, 2010, compared to $2.5 million for the six-month period ended April 30, 2009. The decrease in general and administrative expenses is largely attributable to a decrease in headcount which reduced employee compensation and benefits expenses in the six-month period ended April 30, 2010.

As at April 30, 2010, the Company had cash and cash equivalents and investments totaling $2.6 million compared to $7.5 million as at October 31, 2009. As at April 30, 2010, working capital is negative and amounts to $16.7 million given the December 2010 maturity of the 20.3 million convertible unsecured subordinated debentures.

Source: CONJUCHEM BIOTECHNOLOGIES INC.