Dyax Corp. Announces Second Quarter 2008 Financial Results

CAMBRIDGE, Mass.--(Business Wire)--
Dyax Corp. (NASDAQ: DYAX) today announced financial results for
the second quarter ended June 30, 2008. Dyax will host a webcast and
conference call at 10 a.m. (ET) this morning to review the financial
results and corporate progress for the quarter.

Financial Results:

For the quarter ended June 30, 2008, Dyax reported a net loss of
$24.9 million or $0.41 per share, as compared to a net loss of $17.9
million or $0.37 per share for the comparable quarter in 2007. For the
six months ended June 30, 2008, Dyax reported a net loss of $46.2
million or $0.76 per share, as compared to a net loss of $37.9 million
or $0.81 per share for the comparable six month period in 2007. At the
end of the second quarter of 2008, Dyax moved to close its Liege,
Belgium research facility and recorded a related restructuring charge
of approximately $3.8 million. Residual amounts related to the
restructuring will be recorded in the third quarter. Additionally, for
a portion of the first quarter of 2007, total operating expenses were
net of reimbursements from the joint venture with Genzyme for the
development of DX-88 for hereditary angioedema (HAE). Following the
termination of the joint venture agreement in February 2007, Dyax
assumed responsibility for all development expenses related to HAE. In
2007, these expenses were funded in part by $17.0 million in cash
acquired in the purchase of the joint venture.

Total revenues for the second quarter ended June 30, 2008
increased to $3.8 million versus $2.6 million for the comparable
quarter in 2007. Revenues for the six months ended June 30, 2008
increased to $6.5 million as compared to $5.3 million in the
comparable six month period in 2007. The increase in revenues was
primarily due to revenue recognized in relation to the Cubist
agreement entered into early in the second quarter. Quarterly revenues
may fluctuate due to the timing of the clinical activities of our
collaborators and licensees.

Research and development expenses for the second quarter increased
to $18.0 million as compared to $15.5 million for the comparable
period in 2007. For the six months ended June 30, 2008, research and
development expenses slightly decreased to $35.1 million as compared
to $35.8 million for the comparable period in 2007. This decrease in
research and development expenses was primarily due to a decrease of
$7.2 million in manufacturing costs related to DX-88, which was
partially offset by an increase of $3.6 million in internal expenses
to support the advancement of the HAE program and the $2.0 million
sublicense expense for DX-2240, as well as increased clinical trial
costs for DX-88 CTS.

As of June 30, 2008, Dyax had a total of $67.9 million in cash,
cash equivalents, and short-term and long-term investments, exclusive
of restricted cash.

Corporate Progress and Guidance

Henry E. Blair, Chairman, President and Chief Executive Officer of
Dyax commented, "During the quarter, we announced the most significant
development milestone for DX-88's HAE program to date, the completion
of the second Phase 3 trial, EDEMA4. Over the coming months, we look
forward to reporting on the next clinical and regulatory milestones of
the DX-88 HAE program, including the announcement of EDEMA4 topline
data and submission of the last sequence of our rolling BLA."

"While U.S. commercialization of DX-88 in HAE is our first
priority," remarked Mr. Blair, "we have continued to move forward the
global strategy for the multi-indication DX-88 franchise. Advances
have included the partnership with Cubist Pharmaceuticals for the
development and commercialization of DX-88 in surgical indications in
North America and Europe and, most recently, the exclusive
negotiations with Dompe Farmaceutici for a European license for
angioedema indications."

Mr. Blair, continued, "In anticipation of Dyax's first regulatory
submission for DX-88 in HAE, we made several strategic decisions
during the period to reduce costs and prepare for product
commercialization. As part of this expense mitigation plan, we
announced the closure of our Belgium research facility, which will
contribute approximately $7.0 million in annual costs savings."

With respect to the Company's 2008 guidance, Mr. Blair stated,
"Following the completion of several strategic deals in the first half
of 2008 with sanofi-aventis and Cubist Pharmaceuticals, and the sale
of $10 million of our stock to Dompe Farmaceutici in July, we
anticipate that our net 2008 cash consumption will be significantly
lower than our 2007 amount of $38.3 million. Currently, we have
sufficient cash reserves to fund operations well into 2009. We expect
to further reduce this cash burn through additional partnerships and
collaborations."

Webcast and Conference Call

Dyax Corp. will host a webcast and conference call, including an
open question and answer session.

Date: Wednesday, July 23, 2008

Time: 10:00 a.m. ET

Telephone Access: Domestic callers, dial 866-831-6267

International callers, dial 617-213-8857

Passcode 12675144

Online Access: Go to the Investor Relations section of the Dyax
website (www.dyax.com) and follow instructions for accessing the live
webcast. Participants may register in advance.

A replay of the conference call will be available through August
20, 2008 and may be accessed by dialing 888-286-8010. International
callers should dial 617-801-6888. The replay passcode for all callers
is 25304112. The webcast will be archived on the Dyax website for an
indefinite period of time.

About Dyax

Dyax is focused on advancing novel biotherapeutics for unmet
medical needs, with an emphasis in oncology and inflammation. Dyax
utilizes its proprietary drug discovery technology, phage display, to
identify antibody, small protein and peptide compounds. Dyax, on its
own or with its partners, has advanced several product candidates from
discovery and lead validation into preclinical and clinical
development. The Company's lead product candidate, DX-88, is a
recombinant small protein that is being developed by Dyax for its
therapeutic potential for treating hereditary angioedema (HAE). DX-88
has orphan drug designation in the U.S. and E.U., as well as Fast
Track designation in the U.S., for the treatment of acute HAE attacks.
In April 2008, Dyax licensed to Cubist Pharmaceuticals the intravenous
formulation of DX-88 for surgical indications in North America and
Europe. In addition to using phage display for its internal pipeline,
Dyax leverages this technology broadly into revenue generating
licenses and collaborations through its Licensing and Funded Research
Program (LFRP). Dyax is headquartered in Cambridge, Massachusetts. For
more information about Dyax Corp., please visit www.dyax.com.

Disclaimer

This press release contains forward-looking statements regarding
Dyax Corp. These statements include statements regarding Dyax's future
cash resources, its projected use of cash, the progress of the ongoing
clinical trials of DX-88, and the prospects for future collaborations.
Statements that are not historical facts are based on Dyax's current
expectations, beliefs, assumptions, estimates, forecasts and
projections for Dyax and the industry and markets in which Dyax
competes. The statements contained in this release are not guarantees
of future performance and involve certain risks, uncertainties and
assumptions, which are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed in
such forward-looking statements because of uncertainties associated
with various activities and aspects of Dyax's business, including
risks and uncertainties associated with the following: the timing and
results of clinical trials, regulatory review and approval of Dyax's
product candidates, intense competition, including in the areas of
DX-88's planned indications, Dyax's efforts to develop and
commercialize novel products, its dependence on collaborators for
development, clinical trials, manufacturing, sales and distribution of
products, the uncertainty of negotiations with potential partners and
collaborators. Dyax's changing requirements and costs associated with
planned research and development activities, the uncertainty of patent
and intellectual property protection, Dyax's dependence on key
management and key suppliers, the impact of future alliances or
transactions involving Dyax or others, and other risk factors
described or referred to in Dyax's most recent Annual Report on Form
10-K and other periodic reports filed with the Securities and Exchange
Commission. Dyax cautions investors not to place undue reliance on the
forward-looking statements contained in this release. These statements
speak only as of the date of this release, and Dyax undertakes no
obligation to update or revise these statements, except as may be
required by law.

Dyax and the Dyax logo are registered trademarks of Dyax Corp.
EDEMA4 is a service mark for Dyax Corp.

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DYAX CORP.
SELECTED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
------------ ------------ ------------ ------------
(In thousands, except share and per share data)

Product
development and
license fee
revenues $ 3,831 $ 2,647 $ 6,474 $ 5,277

Operating
expenses:
Research and
development 1 17,993 15,522 35,139 35,836
less: Research
and
development
expenses
reimbursed
by joint
venture - - (7,000)
Equity loss in
joint venture - - 3,831
Liege
restructuring
costs 3,755 3,755 -
Impairment of
fixed assets 352 - 352 -
General and
administrative
2 5,246 3,489 10,767 7,577
------------ ------------ ------------ ------------
Total
operating
expenses 27,346 19,011 50,013 40,244
------------ ------------ ------------ ------------

Loss from
operations (23,515) (16,364) (43,539) (34,967)
Other income
(expense), net (1,397) (1,547) (2,708) (2,961)
------------ ------------ ------------ ------------

Net loss $ (24,912) $ (17,911) $ (46,247) $ (37,928)
============ ============ ============ ============

Basic and
diluted
net loss
per share $ (0.41) $ (0.37) $ (0.76) $ (0.81)
============ ============ ============ ============

Shares used
in
computing
basic and
diluted
net loss
per share 60,562,606 48,247,303 60,513,439 46,892,690
============ ============ ============ ============

1 Includes $343 and $677 of stock-based compensation expense for the
three and six months ended June 30, 2007, respectively. Includes $732
and $1,279 of stock-based compensation expense for the three and six
months ended June 30, 2008, respectively.
2 Includes $335 and $606 of stock-based compensation expense for the
three and six months ended June 30, 2007, respectively. Includes $473
and $877 of stock-based compensation expense for the three and six
months ended June 30, 2008, respectively.
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SELECTED CONSOLIDATED BALANCE SHEET INFORMATION
(Unaudited)

June 30, December
31,
2008 2007
--------- --------
(In thousands)
Cash and cash equivalents $ 38,588 $29,356
Short-term investments 25,195 34,055
Long-term investments 4,081 -
Restricted cash 2,908 4,483
Working capital 20,843 53,115
Total assets 84,750 83,615
Stockholders' equity (14,417) 29,496
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Dyax Corp.
Ivana Magovcevic-Liebisch, 617-250-5759
Executive Vice President
of Administration and General Counsel
imagovcevic@dyax.com
or
Nicole Jones, 617-250-5744
Director, Investor Relations
njones@dyax.com

Copyright Business Wire 2008