Unassociated Document Flamel Technologies Announces Three New Partnership Agreements; Second Quarter 2010 Results

Technologies Announces Three New Partnership Agreements; Second Quarter 2010

LYON, France-July 28, 2010

--Flamel Technologies (Nasdaq:FLML) today announced three new partnership

agreements and its financial results for the second quarter of

2010. Highlights included:

continued to advance on development programs this quarter with our existing

partners, while adding new projects into our feasibility pipeline. All of our

projects involving existing molecules continue to progress through pre-clinical

and clinical development. The already-marketed molecules on which we

are working to develop improved formulations with partners, together with

competitors within their respective classes, represented over $17 billion in

revenues in 2009," commented Stephen H. Willard, Flamel's chief executive

officer. "In addition, we believe that the applicability of the

Medusa platform in creating better formulations of biologics will continue to

gain considerable traction within the industry as our data become

reported total revenues in the second quarter 2010 of $7.5 million, compared to

$9.6 million in the year-ago period. License and research revenues

were $3.3 million versus $4.3 million in the second quarter of

2009. Product sales and services in the current quarter totaled $1.9

million versus $2.5 million in the second quarter of

2009. Other revenues during the current quarter,

including royalties on the sale of Coreg CR , were $2.4 million versus $2.7

million in the year-ago period.

expenses during the second quarter of 2010 were $(12.2) million versus $(13.2)

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

the quarter totaled $(1.6) million versus $(1.9) million in the second quarter

of 2009. Research and development expenses were $(7.9) million versus

$(8.0) million in the second quarter of 2009. SG&A declined to

$(2.8) million from $(3.3) million in the year-ago period.

in the second quarter of 2010 was $(4.3) million, compared to a net loss of

$(3.6) million in the second quarter of 2009. Net loss per share

(basic) for the second quarter of 2010 was ($0.18), compared to a net loss per

share (basic) in the year-ago period of ($0.15).

marketable securities as of June 30, 2010 totaled $33.7 million versus $35.4

million as of March 31, 2010. The decline was entirely due to

currency translation effects; absent these, the Company grew cash during the

quarter by approximately $1.6 million.

first half of 2010, Flamel reported total revenues of $15.6 million versus $21.6

million in the first half of 2009. License and research revenues during the

period were $6.7 million versus $11.4 million in the year-ago

period. Product sales and services during the first six months of

2010 were $4.2 million versus $5.0 million in the first half of

2009. Other revenues during the first six months of 2010 were $4.7

million versus $5.2 million in the year-ago period.

the first half of 2010, total costs and expenses were $(24.4) million, versus

$(24.1) million in the year-ago period. Costs of goods and services

sold in the first half of 2009 totaled $(3.5) million versus $(3.9) million in

the year-ago period. Research and development expenses during the

first half of 2010 were $(15.1) million versus $(13.9) million during the

year-ago period. SG&A for the first six months of 2010 amounted

to $(5.7) million versus $(6.2) million in the year-ago period.

in the first half of 2010 was $(8.3) million, compared to a net loss of $(2.4)

million in the first half of last year. Net loss per share (basic and

diluted) for the first half of 2010 was $(0.34), compared to net loss per share

(basic and diluted) in the year-ago period of $(0.10).

conference call to discuss earnings is scheduled for 8:30 AM EDT July

29, 2010. The dial-in number (for investors in the U.S. and Canada)

is 877-719-9799; the conference ID number is 3585453. International

investors are invited to dial +1 719-325-4813.

conference call will also be webcast The webcast may be accessed at

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 proteins,

peptides, as well as other large and small molecules.

Marlio, Director of Strategic Planning and Investor Relations

document contains a number of matters, particularly as related to the status of

various research projects and technology platforms, that constitute

forward-looking statements within the meaning of the Private Securities

Litigation Reform Act of 1995. The document reflects the current view of

management with respect to future events and is subject to risks and

uncertainties 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, 2009.

Financial Statements

CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

in thousands of dollars except share data)