Unassociated Document Flamel Technologies Announces Expanded Partnership Relations; First Quarter Results

Technologies Announces Expanded Partnership Relations; First Quarter

LYON, France - May 5, 2010 -

Flamel Technologies (Nasdaq: FLML) today announced its financial results for the

first quarter of 2010. Highlights from the first quarter and the

period since the Company's last conference call included:

first quarter 2010, Flamel reported total revenues of $8.1 million versus $12.1

million in the year-ago period; first quarter revenues in the year-ago period

included a $4 million milestone from GlaxoSmithKline

(GSK). License and research revenues during the first quarter

of 2010 were $ 3.4 million versus $7.1 million in the first quarter

2009. Excluding milestones, license and research revenue grew by 10%

year-over-year. Product sales and services, pursuant to the Company's

supply contract with GSK, were $2.3 million versus $2.4 million in the year-ago

quarter. Other revenues in the first quarter, consisting primarily of

royalty revenues from GSK related to sales of Coreg CR, were $2.3 million as

compared to $2.5 million in the year-ago quarter.

expenses in the first quarter 2010 were $12.1 million versus $10.9 million in

the year-ago quarter. Costs of goods and services sold in the quarter

were $1.9 million, as compared to $2.1 million in the first quarter of

2009. Costs and expenses of Flamel's research and development were

$7.3 million, compared to $5.9 million in the first quarter of

2009. SG&A expenses during the quarter remained constant at a

level of $2.9 million.

for the first quarter 2010 was ($4.0) million as compared to a net gain of $1.2

million in the first quarter of 2009. Net loss per share

(basic) for the first quarter of 2010 was ($0.17), compared to a net gain per

share (diluted) in the year-ago period of $0.05. Cash and marketable

securities at the end of the first quarter totaled $35.3 million versus $39.1

million at the end of the first quarter 2009.

H. Willard, Flamel's Chief Executive Officer, stated, "We are pleased to have

expanded the list of partners with whom we are working during the first

quarter. We continue to focus on these relationships to ensure the

best possible level of diversification and potential catalysts as between our

various partners and platforms. The existing programs that we are

working on are progressing well and should provide possible milestones during

the rest of the year. Our financial results are proceeding according

to budget. Many programs are in the clinic or are moving into the

clinic. Coupled with the continued royalty stream from sales of Coreg

CR, we believe these programs offer a strong foundation for the Company's

Technologies, S.A. is a biopharmaceutical company principally engaged in the

development of two unique polymer-based delivery technologies for medical

applications. Micropump is a

controlled release and taste-masking technology for the oral administration of

small molecule drugs. Flamel's Medusa

technology is designed to deliver controlled-release formulations of therapeutic

conference call to discuss earnings is scheduled for 8:30 AM EDT May 6, 2010.

The dial-in number (for investors in the U.S. and Canada) is 1-888-516-2435. The

conference ID number is 4602187. International investors are invited

to dial (1) 719-325-2133. The webcast of the conference call will be

available on the Company's website: www.flamel.com.

Marlio, Director of Strategic Planning and Investor Relations

+ 33 (0) 4 7278-3434

document contains "forward-looking statements" within the meaning of the Private

Securities Litigation Reform Act of 1995, including certain plans, expectations,

goals and projections regarding financial results, product developments and

technology platforms. All statements that are not clearly historical

in nature are forward-looking, and the words "anticipate," "assume," "believe,"

"expect," "estimate," "plan," will," and similar expressions are generally

intended to identify forward-looking statements. All forward-looking

statements involve risks, uncertainties and contingencies, many of which are

beyond our control, that could cause actual results to differ materially from

those contemplated in such forward-looking statements. These risks include risks

that products in the development stage may not achieve scientific objectives or

milestones or meet stringent regulatory requirements, uncertainties regarding

market acceptance of products in development, the impact of competitive products

and pricing, and the risks associated with Flamel's reliance on outside parties

and key strategic alliances. These and other risks are described more

fully in Flamel's Annual Report on the Securities and Exchange Commission Form

20-F for the year ended December 31, 2008. All forward-looking

statements included in this release are based on information available at the

time of the release. We undertake no obligation to update or alter

our forward-looking statements as a result of new information, future events or

CONSOLIDATED STATEMENTS OF OPERATIONS

in thousands of dollars except share data)