Cougar Biotechnology Announces 2007 Fourth Quarter and Year-End Financial Results

LOS ANGELES--(Business Wire)--
Cougar Biotechnology, Inc. (Nasdaq: CGRB), a biotechnology company
engaged in the in-license and development of clinical stage cancer
drug candidates, today reported results for the fourth quarter and
year ended December 31, 2007.

Financial Results

For the quarter ended December 31, 2007, Cougar reported a net
loss applicable to common stock of $7.7 million or $0.43 per share,
compared to a net loss applicable to common stock of $4.1 million or
$1.00 per share, for the quarter ended December 31, 2006. Net loss for
the year ended December 31, 2007 was $32.2 million, or $2.17 per
share, compared to a net loss of $13.5 million, or $3.10 per share,
for the year ended December 31, 2006.

Total operating expenses for the fourth quarter of 2007 were $8.6
million, an increase of $5.2 million compared to the fourth quarter of
2006. Total operating expenses for the year ended December 31, 2007
were $34.1 million, compared to $10.7 million in 2006, an increase of
$23.4 million.

Research and development expenses for the 2007 fourth quarter were
$6.7 million, compared to $2.6 million for the fourth quarter of 2006.
Total research and development expenses for the year ended December
31, 2007 were $27.3 million, compared to $6.7 million in 2006.
Included in research and development expenses for 2007 and 2006 were
non-cash stock-based compensation expense of $5.9 million and $0.9
million, respectively. The increase in research and development
expense is attributable to an increase in clinical trial activity
related to CB7630, Cougar's lead product candidate, as well as
increases in headcount and stock-based compensation.

General and administrative expenses for the 2007 fourth quarter
were $1.8 million, compared to $0.8 million for the fourth quarter of
2006. Total general and administrative expenses for the year ended
December 31, 2007 were $6.8 million, compared to $3.9 million in 2006.
Included in the general and administrative expenses were non-cash
stock-based compensation of $1.2 million and $0.8 million for 2007 and
2006, respectively.

Net cash used in operating activities in 2007 was $23.1 million,
compared to $9.2 million in 2006. As of December 31, 2007, cash, cash
equivalents and investment securities available-for-sale totaled
$135.3 million, compared to $30.8 million as of December 31, 2006. The
increase from the year earlier balance reflects net proceeds of
approximately $128.5 million from private sales of Cougar common stock
to institutional investors in May and December 2007.

Alan H. Auerbach, Chief Executive Officer and President, said, "We
are extremely pleased with the milestones we achieved over the past
year, our first as a publicly-traded company. We continued to report
positive Phase I and Phase II clinical trial data on our lead compound
CB7630 (abiraterone acetate) for the treatment of advanced prostate
cancer and we began patient enrollment for our Phase I trial of CB3304
(noscapine) for multiple myeloma.

"We look forward to continuing our clinical progress in 2008. More
specifically, in the first half of 2008 we anticipate initiating a
Phase III trial of CB7630 in patients with advanced prostate cancer
who have failed androgen deprivation and docetaxel-based chemotherapy,
and we plan to initiate a Phase I/II trial of CB7630 in patients with
advanced breast cancer. During the second half of 2008, we anticipate
initiating a Phase III trial of CB7630 in patients with
hormone-refractory, chemotherapy-naive prostate cancer and potentially
advancing CB3304 into Phase II as well. In 2008, we will continue to
provide updates on the ongoing Phase I and Phase II trials of CB7630
as the data is publicly presented at medical conferences throughout
the course of the year," added Mr. Auerbach.

Fourth Quarter Highlights and Recent Accomplishments:

-- Announced positive interim Phase I and Phase II clinical trial
data for CB7630 (abiraterone acetate) at a number of
scientific and medical conferences, which continue to support
the efficacy of CB7630 in both chemotherapy-naive and
chemotherapy-refractory prostate cancer patients.

-- Initiated a Phase I clinical trial of CB3304 (noscapine) for
the treatment of relapsed or refractory multiple myeloma in
December 2007.

-- Raised gross proceeds of $87 million through the private
placement of 3 million shares of Cougar common stock in
December 2007.

-- Received approval from The NASDAQ Stock Market for the listing
of Cougar common stock on the NASDAQ Global Market under the
ticker symbol "CGRB" as of December 7, 2007.

About Cougar Biotechnology

Cougar Biotechnology, Inc. is a Los Angeles-based biotechnology
company, established to in-license and develop clinical stage drugs,
with a specific focus on the field of oncology. Cougar's oncology
portfolio includes CB7630, a targeted inhibitor of the
17alpha-hydroxylase/c17,20 lyase enzyme, which is currently being
tested in Phase II clinical trials in prostate cancer; CB3304, an
inhibitor of microtubule dynamics, which is currently in a Phase I
trial in multiple myeloma; and CB1089, an analog of vitamin D, which
has been clinically tested in a number of solid tumor types. Further
information about Cougar Biotechnology can be found at
www.cougarbiotechnology.com.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are often, but not always, made through the use of words or
phrases such as "anticipates," "expects," "plans," "believes,"
"intends," and similar words or phrases. These forward-looking
statements include, without limitation, statements related to the
timing of clinical trial initiations and the expected benefits to be
derived from Cougar's drug development programs, including the
potential advantages of CB7630 and its potential for use in the
treatment of chemotherapy refractory prostate cancer and in
second-line hormone and chemotherapy treatment settings. Such
statements involve risks and uncertainties that could cause Cougar's
actual results to differ materially from the anticipated results and
expectations expressed in these forward-looking statements. These
statements are only predictions based on current information and
expectations and involve a number of risks and uncertainties. Actual
events or results may differ materially from those projected in any of
such statements due to various factors, including the risks and
uncertainties inherent in clinical trials, and drug development and
commercialization, including the uncertainty of whether results in
testing of CB7630 will be predictive of results in later stages of
development. For a discussion of these and other factors, please refer
to Cougar's annual report on Form 10-KSB for the year ended December
31, 2007, as well as other subsequent filings with the Securities and
Exchange Commission. You are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof. This caution is made under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. All forward-looking
statements are qualified in their entirety by this cautionary
statement and Cougar undertakes no obligation to revise or update this
press release to reflect events or circumstances after the date
hereof.

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*T
COUGAR BIOTECHNOLOGY, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

Three Months Ended Year ended
December 31, December 31,
------------------------ ------------------------
2007 2006 2007 2006
------------ ----------- ------------ -----------

Operating expenses:
General and
administrative $ 1,825 $ 802 $ 6,787 $ 3,927
Research and
development 6,711 2,622 27,277 6,698
Depreciation 34 12 83 31
------------ ----------- ------------ -----------
Totals 8,570 3,436 34,147 10,656
------------ ----------- ------------ -----------
Loss from operations (8,570) (3,436) (34,147) (10,656)
------------ ----------- ------------ -----------
Interest income 873 545 2,775 1,244
Interest expense - - - (1,013)
Other expense - (1,237) (486) (1,437)
------------ ----------- ------------ -----------
Net loss (7,697) (4,128) (31,858) (11,862)
Accretion of
dividends on
preferred stock - (431) (310) (1,274)
Accretion of
issuance costs on
preferred stock - (121) (81) (364)
------------ ----------- ------------ -----------
Net loss applicable
to common stock $ (7,697) $ (4,680) $ (32,249) $ (13,500)
============ =========== ============ ===========

Net loss per common
share - basic and
diluted $ (0.43) $ (1.00) $ (2.17) $ (3.10)
============ =========== ============ ===========
Weighted-average
common shares
outstanding - basic
and diluted 17,874,770 4,683,086 14,887,723 4,357,681
============ =========== ============ ===========

Period from
May 14, 2003
(date of
inception) to
------------------------
December 31, 2007
------------------------

Operating expenses:
General and administrative $ 13,600
Research and development 42,174
Depreciation 117
------------------------
Totals 55,891
------------------------
Loss from operations (55,891)
------------------------
Interest income 4,057
Interest expense (1,312)
Other expense (1,924)
------------------------
Net loss (55,070)
Accretion of dividends on preferred
stock (1,583)
Accretion of issuance costs on
preferred stock (445)
------------------------
Net loss applicable to common stock $ (57,098)
========================

Net loss per common share - basic and
diluted
Weighted-average common shares
outstanding - basic and diluted
*T

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*T
COUGAR BIOTECHNOLOGY, INC.
(A DEVELOPMENT STAGE COMPANY)

CONDENSED BALANCE SHEETS
(in thousands)

December 31 December 31
2007 2006
Balance Sheet Data
Cash and cash equivalents $ 96,336 $ 14,130
Investment securities available for sale 39,002 16,680
Total assets 138,307 32,331
Total liabilities 3,628 2,185
Series A redeemable convertible preferred
stock - 39,507
Total stockholders equity (deficiency) 134,679 (9,361)
*T

Cougar Biotechnology, Inc., +1-310-943-8040
Alan H. Auerbach, Chief Executive Officer and President
ahauerbach@cougarbiotechnology.com
Mariann Ohanesian, Director of Investor Relations
mohanesian@cougarbiotechnology.com
or
Russo Partners, LLC
David Schull, +1-212-845-4271
David.schull@russopartnersllc.com
Timothy Engel, +1-212-845-4242
Timothy.engel@russopartnersllc.com

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