Financial Results

Total revenues for the second quarter ended June 30, 2009 increased to $4.2 million from $3.8 million for the comparable quarter in 2008. Total revenues for the six months ended June 30, 2009 increased to $10.2 million from $6.5 million for the comparable period in 2008. For the six month 2009 period, the increase in revenues was primarily due to additional revenue recognized under the Company's Licensing and Funded Research Program (LFRP), as well as $1.3 million of revenue recognized under a collaboration agreement entered into during the second quarter of 2008. Quarterly revenues are expected to fluctuate due to the timing and amount of future milestone payments, the clinical activities of collaborators and licensees, and the timing and completion of contractual commitments.

Research and development expenses for the second quarter of 2009 decreased to $11.2 million, as compared to $18.0 million for the comparable quarter in 2008. For the six months ended June 30, 2009, research and development expenses decreased by $4.6 million to $30.5 million, as compared to $35.1 million for the comparable period in 2008. For the six month 2009 period, the decrease in expenses was primarily due to cost savings resulting from the restructuring in March 2009, the closure of the Company's Liege, Belgium research facility in mid-2008, and lower clinical trials costs. These decreases were offset by an increase of approximately $8.0 million in 2009 costs associated with the manufacture of DX-88. Excluding these DX-88 manufacturing costs, research and development expenses for the six month period of 2009 decreased by $12.6 million versus the comparable period in 2008.

General and administrative expenses were unchanged at $5.2 million for both the second quarter of 2009 and 2008. For the six months ended June 30, 2009, general and administrative expenses increased to $13.0 million, as compared to $10.8 million for the comparable period in 2008. The higher general and administrative costs in 2009 were primarily due to increased infrastructure to support plans for commercialization of DX-88 for hereditary angioedema (HAE) and charges for share-based compensation expense, as required under Statements of Financial Accounting Standards No. 123R.

For the quarter ended June 30, 2009, Dyax reported a net loss of $14.8 million or $0.23 per share, as compared to a net loss of $24.9 million or $0.41 per share for the comparable quarter in 2008. For the six months ended June 30, 2009, the net loss was $39.7 million or $0.63 per share, as compared to $46.2 million or $0.76 per share for the comparable period in 2008.

As of June 30, 2009, Dyax had cash, cash equivalents, and short-term and long-term investments totaling $55.6 million, exclusive of restricted cash.

Corporate Progress and Guidance

"During the quarter, the FDA accepted for review Dyax's submission in response to the FDA's complete response letter received in the first quarter and assigned a new Prescription Drug User Fee Act action date for the DX-88 Biologics License Application of December 1, 2009. This marked a significant milestone for Dyax and the HAE community, bringing us one step closer toward approval of DX-88 for acute attacks of HAE," stated Gustav A. Christensen, President and Chief Executive Officer of Dyax.

Mr. Christensen continued, "The LFRP is a key component of our overall business strategy for Dyax, and we are pleased to report on its recent developments. We made progress in growing the extensive LFRP portfolio of licensees with the signing of three new licensing agreements. These include an antibody research agreement with Novo Nordisk, an antibody therapeutic funded research collaboration with Kolltan Pharmaceuticals, and a patent license agreement with Sangamo BioSciences, Inc. During the quarter, we also saw the expansion and maturation of the LFRP pipeline, which now consists of one marketed drug and fourteen product candidates in clinical development. These developments continue to validate our proprietary phage display technology as an important drug discovery tool for the industry."

2009 Guidance

George Migausky, Executive Vice President and Chief Financial Officer of Dyax, stated, "During 2009, we have taken multiple steps to support our long-term business strategy and strengthen our balance sheet. These include expanded partnerships, disciplined cost management and new financial transactions that provide additional resources, as we move forward with our pre-launch commercial activities for DX-88. We expect to continue to deliver on these business objectives by completing additional strategic transactions.