Antares Pharma Reports Second Quarter 2011 Financial and Operating Results

Antares Pharma, Inc. (NYSE Amex: AIS) today reported financial and operating results for the second quarter ended June 30, 2011.

Quarter and Recent Highlights

• Increased both product revenue and total revenue quarter over quarter and year over year.
• Announced positive results from a VIBEX™ MTX clinical pharmacokinetic trial in patients with rheumatoid arthritis (RA) and remain on track for a New Drug Application (NDA) filing in 2012. An additional patent application has been filed based on the data obtained from the study results.
• Announced an exclusive licensing agreement with Watson Pharmaceuticals, Inc. for the commercialization of Anturol® gel, for treatment of patients with overactive bladder (OAB), currently under review by the Food and Drug Administration (FDA).
• Ended the quarter with $33.3 million in cash.

Paul K. Wotton, Ph.D., President and Chief Executive Officer, stated, “The continued progress at Antares is a direct result of having a focused strategic plan and disciplined execution by the management team to meet our objectives. Antares has made significant progress in 2011 against all of our strategic goals. Our year to date product sales increased 46% over the prior year and equally important our year to date royalty revenue mostly attributable to our hGH product increased 63% year over year. In the R&D area we are completing the development work for Anturol in anticipation of potential FDA approval of this unique product as well as advancing our next potential product, VIBEX MTX, through clinical development for the treatment of Rheumatoid Arthritis. Our advancing pipeline, partnerships with industry leaders, increasing revenue base and strong balance sheet make us well-positioned for sustainable growth in 2011 and beyond.”

Second Quarter and First Half Results

Total revenues were $3.5 million and $3.1 million for the three months ended June 30, 2011 and 2010, respectively, an increase of 16%. For the six months ended June 30, 2011, the Company’s total revenue increased to $7.1 million, or 11%, from $6.4 million in the first six months of 2010. Product sales were $2.2 million in the second quarter of 2011 compared to $1.2 million in 2010, an increase of 93%. For the six months ended June 30, 2011, product sales increased 46% to $3.6 million compared to $2.5 million in the prior year.

Licensing and development revenues were $0.8 million and $1.5 million in the 2011 and 2010 second quarter periods, respectively, and were $2.3 million and $3.2 million in the six month periods ended June 30, 2011 and 2010, respectively. The revenue in the first half of 2011 was primarily a result of auto injector and pen injector development work for Teva. The revenue in the first half of 2010 included auto injector development work for Teva and recognition of approximately $0.9 million of revenue deferred in 2009 under a license agreement with Ferring.

Royalty revenues increased to $0.5 million in the 2011 second quarter period from $0.4 million in 2010, or 37%, and increased to $1.2 million in the 2011 six month period from $0.8 million in 2010, or 63%. The increases were due to royalties received from Teva in connection with sales of their hGH Tev-Tropin® and due to royalties on increased device sales to Ferring.

Total gross profit was $2.1 million in both the second quarters of 2011 and 2010, and increased to $4.3 million for the first half of 2011 compared to $4.1 million for the first half of 2010. The increase in the first half of 2011 was mainly a result of an increase in royalties.

Total operating expenses were approximately $3.7 million and $3.6 million for the three months ended June 30, 2011 and 2010, respectively, and were $7.3 million and $7.2 million for the six months ended June 30, 2011 and 2010, respectively. Included in total operating expenses was noncash stock based compensation expense related to options, restricted and performance stock awards of $438,000 and $233,000 for the three months ended June 30, 2011 and 2010, respectively, and $909,000 and $566,000 for the six months ended June 30, 2011 and 2010, respectively.

Net loss per share was $0.02 for the second quarters of 2011 and 2010, and decreased for the six month period to $0.03 in 2011 from $0.04 in 2010, primarily due to an increase in revenue and gross profit resulting in a reduced net loss, along with an increase in weighted average common shares outstanding.

At June 30, 2011, Antares had approximately $33.3 million in cash, compared to approximately $9.8 million at December 31, 2010. The net increase in cash and cash equivalents of $23.5 million in the first half of 2011 was due primarily to the public offering of 14,375,000 shares of common stock at $1.60 per share, which resulted in net proceeds of approximately $21.3 million.

Conference Call, Call Replay and Webcast

Dr. Paul K. Wotton, President and Chief Executive Officer, and Robert F. Apple, EVP, CFO and President of the Parenteral Products Division, will provide a company update and review second quarter 2011 results via webcast and conference call on Monday, August 8, 2011, at 4:30 p.m. Eastern Daylight Time (EDT). A webcast of the call will be available from the investors/media section of the Company's web site at www.antarespharma.com. Alternatively, callers may participate in the conference call by dialing 1-877-941-6009 (US), or 1-480-629-9645 (International). Participants should reference the Antares Pharma conference call. Webcast and telephone replays of the conference call will be available approximately two hours after the completion of the call through 12 p.m. EDT on August 22, 2011. To access the replay, callers should dial 1-800-406-7325 (US) or 1-303-590-3030 (International) and enter passcode 4459539.

About Antares Pharma

Antares Pharma focuses on self-injection pharmaceutical products and topical gel-based medicines. The Company's subcutaneous and intramuscular injection technology platforms include VIBEX™ disposable pressure-assisted auto injectors, disposable multi-use pen injectors and Vision™ reusable needle-free injectors distributed as Tjet® and Zomajet® by Teva Pharmaceutical Industries, Ltd (Teva) and Ferring Pharmaceuticals (Ferring), respectively. In the injector area, Antares Pharma has a multi-product deal with Teva that includes Tev-Tropin® human growth hormone (hGH) and a partnership with Ferring that includes Zomacton® hGH. In the gel-based area, the Company's lead product candidate is Anturol®, an oxybutynin ATD™ gel that is currently under review by the FDA for the treatment of OAB (overactive bladder) which has been licensed to Watson Pharmaceuticals, Inc. for the U.S. and Canada. Antares also has a partnership with BioSante that includes LibiGel® (transdermal testosterone gel) in Phase 3 clinical development for the treatment of female sexual dysfunction (FSD), and Elestrin® (estradiol gel) indicated for the treatment of moderate-to-severe vasomotor symptoms associated with menopause, and currently marketed in the U.S. Antares Pharma has two facilities in the U.S. The Parenteral Products Division located in Minneapolis, Minnesota directs the manufacturing and marketing of the Company’s reusable needle-free injection devices and related disposables, and develops its disposable pressure-assisted auto injector and pen injector systems. The Company’s corporate offices and Pharma Division are located in Ewing, New Jersey, where pharmaceutical products are developed utilizing both the Company’s transdermal systems and drug/device combination products.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements related to the Company’s future financial performance, and other statements which are other than statements of historical facts. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that may cause actual results to differ materially from those anticipated by the forward-looking statements. These risks and uncertainties include, among others, changes in revenue growth, difficulties or delays in the initiation, progress, or completion of product development, clinical trials, difficulties or delays in the progress or completion of Anturol or VIBEX MTX product development or in the success of the Anturol NDA or potential VIBEX MTX NDA. Additional information concerning these and other factors that may cause actual results to differ materially from those anticipated in the forward-looking statements is contained in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2010, and in the Company's other periodic reports and filings with the Securities and Exchange Commission. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this press release. All forward-looking statements are based on information currently available to the Company on the date hereof, and the Company undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this press release, except as required by law.