Paris, Aug 28, 2008 (CompanyNewsGroup via COMTEX) -- BioAlliance Pharma SA (Euronext Paris, ISIN code: FR0010095596-BIO), the specialty pharmaceutical company focused on the treatment of opportunistic infections in cancer and HIV, has published its consolidated accounts to June 30, 2008. Notable features include:

Significantly increased revenues from two sources: (i) payments received under the terms of Loramyc(R) licensing agreements in the United States, Europe and Asia and (ii) revenue from direct Loramyc(R) sales. Over this accounting period, upfront license fees (spread out over time in the accounts) amounted to E5,190k. Sales of Loramyc(R) in France increased to E330k and are growing steadily, fully in line with BioAlliance Pharma's objectives. Contained R&D expenditure at E6,239k, mainly reflecting the company's investment in late-stage clinical programs and preclinical work. A healthy cash situation (E43.9 million), combined with a significant financial profit (E1,067k).

Following a presentation to the French Association of Financial Analysts (SFAF) at 9.00 am this morning (Paris time), BioAlliance Pharma will host a conference call in English at 11.30am. Dial-in numbers and connection information are available on the company's web site.

Summary of key progress in the first half of 2008. Over the first half of 2008, BioAlliance Pharma pursued its business plan in niche markets focused on oncology and infectious disease. Several significant advances were achieved, in line with the strategic objectives that the company has set itself:

- Continuation of Loramyc(R)'s launch in France, with a significant progression in the number of prescriptions and the number of patients treated (+65% between the end of March 2008 and the end of June 2008). End of July, Loramyc(R) share in its target OPC market reaches 5%.

- The company has been awarded marketing authorization for Loramyc(R) in 6 European countries, including the two largest markets after France (the United Kingdom and Germany) where the product is being launched since July by the sales & marketing teams at BioAlliance Pharma's SpeBio joint venture.

- The signature of two new licensing agreements for Loramyc(R) in Asia, with Handok Pharmaceuticals (Korea, Malaysia, Singapore and Taiwan) and NovaMed (China). These two agreements represent a potential total of $16.5 million and feature significant royalties.

- Completion of Loramyc(R)'s pivotal Phase III trial in the United States with encouraging interim results, which should enable filing of an NDA at the FDA by the end of the year.

- Continuation of the company's R&D programs - notably its promising projects liable to enter clinical phases in 2009 (on AMEP(TM), irinotecan Transdrug(R) and new Lauriad(R) applications) and ongoing clinical trial on acyclovir Lauriad(R).

- In early July, BioAlliance announced the suspension of its Phase II clinical trial on doxorubicin Transdrug(R) on the recommendation of the Drug Safety Monitoring Board and the Steering Committee due to severe adverse events and is currently making investigations, which are due to be completed by the end of December 2008.

- Signature of strategic alliances in Europe aimed at completing its product portfolio, with in-licensing of the commercial rights for Europe to ondansetron Oral Spray(R) (indicated in post-chemotherapy and post-radiotherapy nausea and vomiting). This product reinforces BioAlliance Pharma's product range in supportive care and is enabling the company to position itself as a key partner for oncologists and infectious disease specialists. Earlier this month, the company complemented its supportive care product portfolio with an additional ondansetron delivery system - ondansetron RapidFilm(TM). European registration files for both products are due to be submitted in 2009.

H1 2008 accounts

Available cash and cash equivalents

The company's cash reserves on 30 June 2008 amounted to E43.9 million, versus E56.3 million on 31 December 31 2007. This drop of E12.4 million is essentially due to R&D investments (particularly the company's Phase III clinical trials of its three lead products) and promotional efforts related to Loramyc(R)'s launch on the French market. Over the period in question, BioAlliance Pharma paid NovaDel Pharma Inc. E1.9 million for acquisition of the European commercial rights to ondansetron Oral Spray.

In 2009-2010, BioAlliance intends to reinforce its out-licensing activity in order to generate revenue. The company will pursue its licensing policy for both lead products (Loramyc(R) and acyclovir Lauriad(R)) and its early-stage development projects (notably with candidates like orally administered irinotecan Transdrug(R) in colon cancer and an anti-integrase program in the HIV area).

Summary of operating activity

Revenues

Revenue for the period amounted to E4,896k.

This mainly corresponds to fees received under the terms of the Loramyc(R) licensing agreements (totaling E5,190k), which can be broken down as follows:

- Royalties received from the company's SpeBio joint venture (E2,325k). This sum corresponds to a proportion of the E3 million up-front license fee (spread over 10 years) and a E4.5 million milestone payment due for the first half-year of 2007 following grant of marketing approval for Loramyc(R) in Germany and the United Kingdom. Half of this total was accounted for over the period in question, due to proportional consolidation of SpeBio's income.

- E2,070k in royalties received from Par Pharmaceuticals, the license holder for the United States. This sum corresponds to spreading of the up-front license fee over a period of 30 months. The initial period of 24 month has been extended to 30 months, which has been confirmed on the occasion of a meeting in August with the FDA where the company was able to validate the registration process of Loramyc(R) in the United States. This meeting was very positive and allows to confirm the planned registration of the product in this territory by the end of 2009.

- E105k from the Korean company Handok Pharmaceuticals, corresponding to spreading of the up-front license fee over a period of 27 months.

Over the period in question, Loramyc(R)'s sales in France rose to E330k.

Payroll costs

Salary, remuneration and social security costs rose from E3,673k for H2 2007 to E4,378k for H1 2008, i.e. an increase of E705k due to the growth in staff numbers. The company has recruited in all business areas over 2007 and the first half of 2008.

External costs

External costs amounted to E9,278k as of June 30, 2008 versus E6,749k as of June 30, 2007, i.e. an increase of E2,529k. This change reflects a scheduled increase in R&D costs, which represented a total of E6,239k for the first half of 2008. These costs correspond to expenditure on the three Phase III clinical trials (Loramyc(R) in the United States, acyclovir Lauriad(R) in labial herpes and doxorubicin Transdrug(R) in primary liver cancer) and development work on new in-house products. The company has also maintained its promotional efforts related to the launch of Loramyc(R) in France.

Tax and related payments

This expenditure rose to E315k for H1 2008, versus E94k for H1 2007. It mainly includes non-deductible VAT, land tax and salary tax, as well as tax deducted at source relative to the license agreements signed by the company.

Depreciation expenses

Depreciation expenses rose from E76k for H1 2007 to E189k for H1 2008. This variation results from the fitting out of office and lab space at BioAlliance Pharma's European corporate headquarters in Paris.

Provisional expenses

Provisional expenses notably fell to E178k as of June 30, 2008, versus net expenses of E205k for H1 2007. These amounts primarily correspond to amounts set aside to cover disputes with former staff and suppliers.

Other operating revenues and expenses

Other operating revenues and expenses amounted to a net balance of E240k as of June 30, 2008, versus a net sum of E1,463k as of June 30, 2007. These items include a cost of E1,926k corresponding to the license fee for ondansetron Oral Spray. Furthermore, income of E2,250k (representing the difference between the value of the SpeBio shares held by BioAlliance Pharma and the Group's portion of SpeBio's net operating profit) has been accounted for. This difference results from the increase in SpeBio's share capital reserved for SpePharm, for which the latter paid an additional E4.5 million for the half year and which is accounted for as a share premium.

Financial profit

The financial profit rose from E270k for H1 2007 to E1,067k for H1 2008. These amounts mainly correspond to revenue from the sale of short-term investment products used by the company to manage its cash reserves.

Net loss

As a result of the progression in business activity (reflected by the revenue and expenditure items presented above), the net loss for the 6-month period ending June 30, 2008 was E7,924k, versus E8,761k for H1 2007 (i.e. a decrease of E837k).

Schedule and perspectives:

Revenues:

The targets for Europe-wide sales of Loramyc(R) are E25 million (a 23% market share) in 2011 and E33 million (a 30% market share) in 2012.

In France, 8,000 patients have already been treated with Loramyc(R). The goal for the second half of 2008 is to double this figure and add 8,000 additional patients.

Registration: the following dates are estimates and are subject to the status of clinical and/or pharmaceutical results and any additional requests by regulatory agencies.

BioAlliance Pharma is planning to file an NDA for Loramyc(R) in the United States in late 2008.

In terms of ondansetron RapidFilmTM, an application for European marketing approval is scheduled for the first half of 2009. An application for ondansetron Oral Spray is due to be filed in the second half of 2009.

The company hopes to register acyclovir Lauriad(R) in Europe in 2009 and, depending on an additional pharmacoclinical program, a marketing application in the United States could potentially be filed in 2010.

Development

AMEP(TM), irinotecan Transdrug(R) and fentanyl Lauriad(R) (extension of Lauriad(R) franchise) are all candidates for first-in-man use in 2009. The feasibility of new therapeutic applications of the Lauriad(R) muco-adhesive technology (in mucositis and inflammation) will be established at the end of 2008.

In compliance with the provisions of article 221-4 V of the Autorité des Marchés Financiers' (AMF, the French stock market regulator) General Regulations, BioAlliance Pharma today announced the filing of its financial report for the half year to June 30, 2008. The half-year financial report, including the consolidated accounts to June 30, 2008, can be viewed in the "Informations Actionnaires" section of the company's web site (www.bioalliancepharma.com).

The half-year accounts have been approved by the Executive Board, verified by the statutory auditor and examined by the Supervisory Board on August 27, 2008.

About BioAlliance Pharma

BioAlliance Pharma SA is a specialty pharmaceutical company focused on the treatment of opportunistic infections in cancer and HIV. The company develops and commercializes innovative products which address drug resistance issues. BioAlliance Pharma has launched its first portfolio product (Loramyc(R)) in France and, more recently, in the UK, Germany and Denmark, and has already received European Marketing Authorizations in Belgium and Luxemburg. The product has also completed a pivotal Phase III clinical trial in the United States in oropharyngeal candidiasis. The company is also performing a Phase III trial in labial herpes with acyclovir Lauriad(R) (which is based on the same Lauriad(R) muco-adhesive technology as Loramyc(R), enabling targeted release at the disease site). BioAlliance Pharma also has a second technology (the Transdrug(R) nanoparticle technology, designed specifically for intracellular targeting) and, furthermore, is developing a new therapeutic entities program in oncology and infectious disease. BioAlliance Pharma has established several strategic alliances for commercializing Loramyc(R), with agreements in 2007 for Europe (with the SpeBio joint venture) and the United States (with Par Pharmaceutical) and in 2008 for Asia (Korea, Malaysia, Singapore and Taiwan with Handok Pharmaceuticals and then China with Novamed). In May and August 2008, the company expanded its product portfolio by acquiring the Europe commercial rights to, respectively, ondansetron Oral Spray (OS) from NovaDel Pharma Inc. (Amex: NVD) and ondansetron RapidFilmTM from APR/Labtec. For more information, visit BioAlliance Pharma's website at www.bioalliancepharma.com.

Disclaimer

This communication expressly or implicitly contains certain forward-looking statements concerning BioAlliance Pharma SA and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of BioAlliance Pharma SA to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. BioAlliance Pharma SA is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise. For a discussion of risks and uncertainties which could cause actual results, financial condition, performance or achievements of BioAlliance Pharma SA to differ from those contained in the forward-looking statements, please refer to the Risk Factors ("Facteurs de Risque") section of the reference document approved by the AMF on April 11 2008 under the number R. 08-021, which is available on the AMF website (http://www.amf-france.org) or on BioAlliance Pharma S.A.'s website (http://www.bioalliancepharma.com).

BioAlliance Pharma SA

Dominique Costantini, President and CEO

Tel.: +33 1 45 58 76 01

dominique.costantini@bioalliancepharma.com Nicolas Fellmann, CFO Tel.: +33 1 45 58 71 00 nicolas.fellmann@bioalliancepharma.com

ALIZE RP

Caroline Carmagnol

Tel.: +33 6 64 18 99 59

caroline@alizerp.com

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[CN#141903]

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KEYWORD: FR SUBJECT CODE: Results