NovaDel Releases Financial Results for 3Q and 9 Months Ended September 30

In a release on November 16, the Company noted that for the quarter and nine months ended September 30, it reported a net loss of $1.4 million, or $0.02 per share, and $5.2 million, or $0.09 per share, respectively, compared to a net loss of $2.5 million, or $0.04 per share, and $7.7 million, or $0.13 per share, respectively, for the quarter and nine months ended September 30, 2008.

For the quarter ended September 30, the loss from operations was $1.4 million as compared to $2.5 million for the quarter ended September 30, 2008. The decrease of $1.1 million is attributable to further reductions in overall spending as the Company has postponed project related activities due to resource constraints.

As of September 30, NovaDel's cash and cash equivalents were $0.3 million. The Company had negative working capital of $(4.2) million as of September 30, as compared to working capital of $0.1 million as of December 31, 2008, representing a net decrease in working capital of approximately $(4.3) million, principally due to the net cash used in operations of $(3.6) million, the $1.0 million payment to ProQuest against the First Tranche Notes slightly offset by the proceeds of $0.7 million received from Seaside 88 related to the stock purchase agreement dated June 26.

On October 27, the Company entered into a licensing agreement with privately-held Mist Acquisition to manufacture and commercialize the NitroMist lingual spray version of nitroglycerine, a short-acting nitrate for the treatment of angina pectoris. Under the terms of the agreement, the Company received a $1,000,000 licensing fee upon execution of the agreement, and will receive milestone payments totaling an additional $1,000,000 over the next twelve months and ongoing performance payments of up to seventeen percent (17 percent) of net sales.

NovaDel also announced an exclusive license and distribution agreement with ECR Pharmaceuticals Company, Inc., a subsidiary of Hi-Tech Pharmacal Co., Inc. to commercialize and manufacture ZolpiMist in the United States and Canada. ZolpiMist is our oral spray formulation of zolpidem tartrate approved by the FDA in December of 2008.

Under the terms of the agreement, ECR paid NovaDel $3 million upon the execution of the agreement. ECR will assume responsibility for manufacturing and marketing the product in the United States and Canada. In addition, ECR will pay royalties of up to 15 percent on net sales of ZolpiMist as well as an additional milestone payment if sales reach a specified level.

Steven B. Ratoff, Chairman and Interim CEO said, "We believe that these two agreements will allow us to initiate further development of our product pipeline utilizing our patented NovaMist oral spray technology."

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