SNUS Sonus Pharmaceuticals (MM)

Sonus Pharmaceuticals, Inc. (NASDAQ: SNUS), an oncology drug development company, today reported progress and financial results for the first quarter of 2007. At 4:30 P.M. ET today, Sonus will host its quarterly conference call. The discussion will include an overview of the progress with the Company�s first two oncology product candidates, TOCOSOL� Paclitaxel and TOCOSOL Camptothecin. �During the first quarter, we continued to focus on our primary objectives for 2007, and at this point in the year, we believe that we are on track to achieve those objectives,� said Michael A. Martino, President and Chief Executive Officer of Sonus Pharmaceuticals. �First, the Phase 3 pivotal trial for TOCOSOL Paclitaxel is proceeding as planned, and we expect adjudicated data from that trial in the third quarter of 2007. Second, in collaboration with our partner, we are making good progress to complete as many components of the New Drug Application for TOCOSOL Paclitaxel as we can prior to obtaining Phase 3 data. Finally, the Phase 1 trial for TOCOSOL Camptothecin is ongoing, and our goal is to obtain preliminary data by the end of 2007 in order to make a decision about moving this product into Phase 2.� First Quarter 2007 Financial Results For the first quarter of 2007, Sonus reported a net loss of $3.2 million, or $0.09 per share, compared with a net loss of $5.3 million, or $0.17 per share, in the first quarter of 2006. The lower net loss is primarily due to higher revenue in the current period on reimbursable activity with our corporate partner for TOCOSOL Paclitaxel and lower R&D spending related to drug supply and manufacturing costs for TOCOSOL Paclitaxel. For the first quarter of 2007, the Company recognized $5.1 million in revenue under its collaboration agreement with Bayer Schering Pharma AG, Germany (�Bayer Schering�), which includes $3.7 million from reimbursable expenses for work related to the development of TOCOSOL Paclitaxel and $1.4 million for amortization of the upfront license fee that Sonus received under its agreement with Bayer Schering. Cash and investments totaled $49.0 million at March 31, 2007. The Company expects that its 2007 net cash burn will be approximately $36 million. With its current resources, Sonus has sufficient cash to fund operations through at least the second quarter of 2008. Conference Call Information The quarterly conference call will be web cast live on May 9 at 1:30 P.M. PT/4:30 P.M. ET and can be accessed at www.sonuspharma.com/events.html. An archive of the call will be available through the same link. A telephone replay can be accessed from May 9, 4:30 P.M. PT/7:30 P.M. ET, for one week at 800-405-2236 or 303-590-3000 for international calls; Pass code: 11088543. About Sonus Pharmaceuticals Located near Seattle, Washington, Sonus Pharmaceuticals, Inc. is focused on the development of cancer drugs that are designed to provide better efficacy, safety and tolerability, and are more convenient to use. The Company�s lead product candidate, TOCOSOL Paclitaxel, is currently in a Phase 3 pivotal trial for the potential treatment of metastatic breast cancer. Sonus expects adjudicated data from the Phase 3 trial in the third quarter of 2007. Formulated with the Company�s proprietary TOCOSOL technology, TOCOSOL Paclitaxel is an injectable, ready-to-use vitamin E-based emulsion of paclitaxel that may reduce treatment-limiting side effects and improve anti-tumor activity. In addition to the continuing development of TOCOSOL Paclitaxel, Sonus initiated a Phase 1 clinical trial for its second cancer drug, TOCOSOL Camptothecin, in September 2006. For additional information on the Company, including past news releases, please visit www.sonuspharma.com. Safe Harbor Certain statements made in this press release are forward-looking such as those, among others, relating to the development, safety and efficacy of therapeutic drugs and potential applications for these products. As discussed in Sonus Pharmaceuticals' filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for 2006 and subsequent Quarterly Reports on Form 10-Q, actual results could differ materially from those projected in the forward-looking statements as a result of the following factors, among others:�the Company's products will require extensive clinical testing and approval by regulatory authorities; such approvals are lengthy and expensive and may never occur; risks that the Company will not be able to complete the Phase 3 clinical trial for TOCOSOL Paclitaxel; risks that clinical studies with TOCOSOL Paclitaxel will be delayed or will not be successful; risks that the FDA may not approve the TOCOSOL Paclitaxel New Drug Application; risks that the Phase 1 clinical trial for TOCOSOL Camptothecin will not be successful; risks of successful development of therapeutic drugs; and risks that the Company may not be successful in obtaining funding from third parties or completing a financing necessary to support the costs and expenses of clinical studies as well as research and development activities. The Company undertakes no obligation to update the forward-looking statements contained herein or to reflect events or circumstances occurring after the date hereof. Condensed Statements of Operations (Unaudited) (in thousands, except per share amounts) � Three Months Ended March 31, 2007� 2006� � Collaboration revenue from Bayer Schering $ 5,051� $ 4,054� Operating expenses: Research and development 6,939� 8,111� General and administrative 1,976� 1,768� Total operating expenses 8,915� 9,879� Operating loss (3,864) (5,825) Other income, net 639� 515� Net loss $ (3,225) $ (5,310) � Net loss per share: Basic & diluted $ (0.09) $ (0.17) � Shares used in calculation: Basic & diluted 36,854� 30,621� � � � � Condensed Balance Sheets (in thousands) � March 31, December 31, 2007� 2006� (unaudited) Assets: Cash, cash equivalents and marketable securities $ 48,988� $ 58,278� Accounts receivable from Bayer Schering 8,172� 8,044� Other current assets 1,249� 524� Property and equipment, net 1,096� 1,186� Other assets 453� 461� Total assets $ 59,958� $ 68,493� � Liabilities and stockholders' equity: Accounts payable $ 243� $ 898� Accrued expenses 8,047� 11,928� Accounts payable with Bayer Schering 1,604� 1,473� Other current liabilities 33� 65� Deferred revenue from Bayer Schering 9,700� 11,087� Stockholders' equity 40,331� 43,042� Total liabilities and stockholders' equity $ 59,958� $ 68,493�