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NicOx reports financial results for the nine months to September 2011

October 27, 2011 - Sophia Antipolis, France

NicOx S.A. (NYSE Euronext Paris: COX) today reported financial results forthenine month period ended September 30, 2011, and provided an overview of itsactivities.

Financial summary for the first nine months of 2011

Following the restructuring of the Group's entities and activities in late2010, research and development costs and administrative and selling costswereEUR11.8 million in the nine months to September 30, 2011, compared toEUR41.4million for the same period in 2010.

In the first nine months of 2011, NicOx recorded a total net loss for theperiodof EUR10.4 million, compared to EUR37.8 million for the first nine monthsof 2010.On September 30, 2011, the Company had cash and cash equivalents totallingEUR96.2 million, compared to EUR107.3 million on December 31, 2010.

No revenues were recorded for the nine months ended September 30, 2011,comparedto EUR7.4 million for the same period of 2010, which related to the initiallicense payment received from Bausch + Lomb as part of the worldwidelicensingagreement signed in March 2010.

Third quarter operational summary

In July 2011, NicOx formally initiated the Food and Drug Administration's(FDA)Formal Dispute Resolution process regarding the decision not to approvenaproxcinod for the relief of the signs and symptoms of osteoarthritis inJuly2010. This process enables companies to request a formal review of any FDAdecision by raising the matter to the higher supervisory level. If theissue isnot resolved at the primary supervisory level, the company may request thatthematter be reviewed at additional supervisory levels. NicOx will update themarket on the outcome of the appeal when the process is completed.

In August 2011, Jean-Luc Bélingard informed NicOx of his decision tostep downfrom the Board of Directors because of his increased responsibilities atbioMérieux. M. Bélingard joined NicOx's Board of Directors in2002 and theCompany would like to thank him for his invaluable support and adviceduringthis period.

In September 2011, new preclinical results obtained with NCX 6560 werepresentedat the European Muscle Conference in Berlin (Germany), the annual meetingof theEuropean Society for Muscle Research. NicOx also made several preclinicalpresentations at the 35(th) National Congress of the Italian Society ofPharmacology in Bologna (Italy) and at the Congress of the EuropeanFederationof IASP (International Association for the Study of Pain) Chapters inHamburg(Germany).

The Company is continuing to work on implementing the previously disclosedbusiness development strategy and to find innovative ways of securingalternative funding for early-stage projects to maximise the potential ofitsnitric oxide-donating platform.

Post-reporting period

NicOx and Ferrer Grupo have agreed to amend their collaboration for thedevelopment of NCX 1047, the lead preclinical candidate in theirdermatologyalliance, in order to enable NicOx to seek a development and marketingpartnerin the US. Ferrer will waive its option on US development and marketingrightsto any product covered by the agreement, which was signed in April2004((1)) andexpanded in September 2005((2)). Ferrer retains marketing rights for theEuropean Union (including the European Free Trade Association, EFTA), LatinAmerica, French-speaking Africa (including Morocco and Algeria) and Egypt.NicOxretains all rights for Asia and has the right to co-market productsdirectly inthe European Union and EFTA.

Review of the consolidated financial results for the nine months endedSeptember30, 2011 and 2010:


NicOx did not record any revenues for the nine months ended September 30,2011,compared to EUR7.4 million for the same period of 2010.

The revenues recognized during the first nine months of 2010 correspond totheinitial license payment received from Bausch + Lomb following the signatureof alicensing agreement in March 2010 that granted Bausch + Lomb exclusiveworldwiderights to develop and commercialize BOL-303259-X (NCX 116). This amount hasbeenimmediately recognized in revenues because the Company will not havecontinuinginvolvement in the future development of the compound which is the subjectofthis collaboration agreement.

Research and development costs, general, administrative and selling costs

For the nine months ended September 30, 2011, research and developmentcosts andgeneral, administrative and selling costs were significantly reduced fromthesame period of 2010, amounting to EUR11.8 million compared to EUR41.4million. Thissignificant reduction results from the restructuring of the Group'sentities andactivities announced in 2010. As part of the restructuring, the US officesofNicOx were closed in August 2010, the headcount of the French and Italianentities of the Group were significantly reduced, and the activities wereredefined in order to protect the Company's cash and cash equivalents andrefocus the Group's key strategic priorities. For the first nine months of2011, 61% of these expenses were attributable to research and developmentand39% to selling and administrative expenses compared to 74% and 26%,respectively, for the same period of 2010.

Research and development expenses were EUR7.2 million in the nine monthsendedSeptember 30, 2011, compared to EUR30.8 million during the nine monthsendedSeptember 30, 2010. In the first nine months of 2011, research anddevelopmentexpenses correspond mainly to personnel expenses. The Group employed 39peoplein research and development on September 30, 2011, compared to 73 people atthesame date in 2010.

In the first nine months of 2011, general and administrative expenses wereEUR3.4million compared to EUR3.9 million on September 30, 2010, and includepersonnelexpenses in administrative and financial functions, as well as theremunerationof corporate officers. Selling expenses totaled EUR1.3 million during theninemonths ended September 30, 2011, compared to EUR6.7 million during the sameperiodin 2010, and for 2011 relate to communication and business developmentactivities (including the activities related to the evaluation of companiesandproducts to acquire or in-licence). In 2010, these expenses also includedpreparation for the potential future commercialization of naproxcinod intheUnited States. On September 30, 2011, the Group employed 18 people in itsselling, general and administrative departments, compared to 30 people atthesame date in 2010.

Other income

Other income was EUR0.8 million at September 30, 2011 compared to EUR2.0million atSeptember 30, 2010. Other income relates to operational subsidies fromresearchtax credits in France.

Other expenses

Other expenses exclusively relate to restructuring costs. These resulted inanincome of EUR0.1 million on September 30, 2011 due to the cancellation ofcontingencies related to the restructuring of NicOx S.A recognized in 2010,which are no longer applicable in 2011.

For 2010, other expenses included an accrual of EUR4.7 millioncorresponding toestimated costs for the restructuring plan for NicOx SA's headquarters andItalian subsidiary; the cancellation of expenses in an amount of EUR1.4millionfurther to the cancellation of rights on stock options and free shares as aconsequence of the restructuring plan and EUR2.5 million corresponding tothe costof the closure of the offices of NicOx Inc. in the US.

Operating result

The operating loss amounted to EUR10.9 million in the nine months endedSeptember30, 2011, compared to EUR37.7 million on September 30, 2010.

Other results

Net financial income totaled EUR0.7 million during the first nine months of2011,compared to EUR0.2 million during the same period in 2010, and mainlyrepresentsthe returns on the financial investments of the Company's cash and cashequivalents.

The income tax expense incurred by NicOx in the first nine months of 2011relates to tax from its US and Italian subsidiaries and totaled EUR0.1million,compared to EUR0.3 million during the same period in 2010.

Total net loss of the period

The total net loss was EUR10.4 million for the nine months ended September30, 2011, compared to EUR37.8 million during the same period in 2010. Thisdecrease is explained by the significant reduction of all the operatingexpensesfollowing the restructuring implemented after the decision of the FDA nottoapprove naproxcinod in July 2010.

Consolidated statement of financial position

The indebtedness incurred by NicOx is mainly short-term operating debt. OnSeptember 30, 2011, the Company's current liabilities totaled EUR4.4million,including EUR1.2 million in accrued compensation for employees, EUR1.2million intaxes payable, EUR1.0 million in accounts payable to suppliers and externalcollaborators, EUR0.8 million in other contingencies and liabilities withrespectto the restructuring cost accrued and EUR0.2 million for other liabilities.

The Company's cash and cash equivalents were EUR96.2 million on September30, 2011, compared to EUR107.3 million on December 31, 2010 and EUR115.9million onSeptember 30, 2010.

(1) See NicOx press release dated April 29, 2004.

(2) See NicOx press release dated September 15, 2005.

About NicOx

NicOx (Bloomberg: COX:FP, Reuters: NCOX.PA) is a pharmaceutical companyfocusedon the research, development and future commercialization of drugcandidates.NicOx is applying its proprietary nitric oxide-donating R&D platform todevelopan internal portfolio of New Molecular Entities (NMEs) for the potentialtreatment of inflammatory, cardio-metabolic and ophthalmological diseases.

The Company's pipeline includes several nitric oxide-donating NMEs, whichare indevelopment internally and with partners, who include Merck (known as MSDoutside the United States and Canada), Bausch + Lomb, and Ferrer.

NicOx S.A. is headquartered in France and is listed on Euronext Paris(Compartment B: Mid Caps).

This press release contains certain forward-looking statements. AlthoughtheCompany believes its expectations are based on reasonable assumptions,theseforward-looking statements are subject to numerous risks and uncertainties,which could cause actual results to differ materially from thoseanticipated inthe forward-looking statements.

Risks factors which are likely to have a material effect on NicOx'sbusiness arepresented in the 4(th) chapter of the « Document deréférence, rapport financierannuel et rapport de gestion 2010 » filed with the FrenchAutorité des MarchésFinanciers (AMF) on February 25, 2011 and available on NicOx's website( and on the AMF's website (

NicOx S.A.

Les Taissounières - Bât HB4 - 1681 route des Dolines - BP313 -06906 Sophia

Antipolis Cedex - France

Tel: +33 (0)4 97 24 53 00 · Fax: +33 (0)4 97 24 53 99

Interim Consolidated statement of Comprehensive Income - September 30, 2011

For the period of
nine months
September 30,

2011 2010

(in thousands of EUR except
for per share data)

Revenues ...................... - 7,423

Research and development (7,160) (30,754)

Administrative expenses.................. (3,395) (3,940)

Selling expenses..................... (1,279) (6,665)

Other income......................... 764 2,020

Other expense...................... 141 (5,824)

Operating loss ...................... (10,929) (37,740)

Finance income ...................... 675 313

Finance expense...................... (12) (86)

Loss before income tax (10,266) 37,513

Income tax expense....................... (94) (327)

Net loss of the period................. (10,360) (37,840)

Exchange differences on translation of - 15
foreign operations...

Other comprehensive income (loss) for the - -
period, net of tax

Total comprehensive income (loss) for the (10,360) (37,825)
period, net of tax

Attributable to:

- Equity holders of the parent (10,360) (37,825)

- Non-controlling interests - -

Basic and diluted loss per share attributable (0.14) (0.51)
to equity holders of the

Interim consolidated Statement of Financial Position - September 30, 2011

 As of As of September December 30, 31, 2011 2010 (in thousands of EUR) ASSETS Non-current assets Property, plant & equipment 1,682 2,130 Intangible assets 258 386 Other financial assets 254 247 Deferred income tax assets 6 39 Total non-current assets 2,200 2,802 Current assets Government subsidies receivable 764 1,509 Other current assets 636 909 Prepaid expenses 334 377 Cash and cash equivalents 96,156 107,335 Total current assets 97,890 110,130 TOTAL ASSETS 100,090 112,932 EQUITY AND LIABILITIES Common shares 14,563 14,509 Other reserves 76,127 85,979 Non-controlling interests . - - Total Equity 90,690 100,488 Non-current liabilities Other contingencies and liabilities 4,871 4,548 Deferred income tax liabilities 105 96 Finance lease 65 83 Total non-current liabilities 5,041 4,727 Current liabilities Other contingencies and liabilities 761 2,800 Finance lease 30 30 Trade payables 1,005 2,045 Social security and other taxes 2,391 2,627 Other liabilities 172 215 Total current liabilities 4,359 7,717 TOTAL EQUITY AND LIABILITIES 100,090 112,932

NicOx S.A.

Les Taissounières - Bât HB4 - 1681 route des Dolines - BP313 -06906 Sophia

Antipolis Cedex - France

Tel: +33 (0)4 97 24 53 00 · Fax: +33 (0)4 97 24 53 99

NicOx reports financial results for the nine months to September 2011:

This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: NICOX via Thomson Reuters ONE


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