NitroMed Announces Agreement to Sell BiDil® Drug Business to JHP Pharmaceuticals, LLC

Business Wire, Oct 23, 2008

Total operating expenses for the three months ended September 30, 2008, excluding cost of product sales, were $3.0 million, compared to $11.9 million for the same period in 2007, a decrease of $8.9 million, or 75%. For the nine months ended September 30, 2008, total operating expenses, excluding cost of product sales, were $13.8 million, compared to $34.5 million for the same period in 2007, a decrease of $20.7 million, or 60%. The decrease in operating expenses for both periods is primarily due to the company's January 2008 restructuring.

The company's net loss for the quarter ended September 30, 2008 was $0.4 million, or $0.01 per common share, compared to a net loss of $8.4 million, or $0.18 per common share, for the same period in 2007. For the nine months ended September 30, 2008, the company's net loss was $4.6 million, or $0.10 per common share, compared to a net loss of $24.7 million, or $0.60 per common share, for the same period in 2007.

At September 30, 2008, the company had cash, cash equivalents and short-term marketable securities totaling $17.8 million, which excludes $1.6 million of securities classified as long-term marketable securities.

"These quarterly results continue to reflect generally steady BiDil sales although active promotional efforts related to BiDil were discontinued at the beginning of the year. During the third quarter, we again carefully managed expenses following our January 2008 restructuring," Mr. Bate said. "For the year ending December 31, 2008, we expect to incur approximately $14 to $16 million in operating expenses, including share-based compensation expense related to SFAS 123R but excluding cost of product sales and charges related to our January 2008 restructuring."

Webcast and Conference Call

NitroMed will host a webcast and conference call, including an open question and answer session today, October 23, 2008, at 10:00 AM ET to discuss the planned sale of the BiDil drug business and the company's third and year to date quarter 2008 financial results, progress and strategies. Callers may access the conference call as follows:

Domestic callers: 800-260-8140.

International callers: 617-614-3672.

Participant passcode: 39918731. The call may also be accessed by webcast at www.nitromed.com.

An audio replay of the conference call will be available two hours after the call and through November 23, 2008. The replay can be accessed by dialing 888-286-8010. International callers should dial 617-801-6888. The replay passcode for all callers is 43040680. The webcast will also be archived on the company's website until November 23, 2008.

About JHP Pharmaceuticals, LLC

JHP, headquartered in New Jersey, is a specialty pharmaceutical company which manufactures and sells pharmaceutical products, primarily aseptic injectable products into the hospital segment, and provides contract manufacturing of sterile products for innovator pharmaceutical companies. JHP markets 14 branded pharmaceutical products through its national sales and marketing infrastructure and contract manufactures pharmaceutical products for large proprietary pharmaceutical companies. JHP employs more than 350 staff in the USA in its manufacturing, sales & marketing and corporate areas. In August, JHP announced the acquisition of US and Canadian rights for Dantrium[R] (dantrolene sodium) from Procter & Gamble. JHP is a private company wholly owned by JHP Holdings, LLC.