For the first six months of 1997 the Company had a net loss of $3.9 million, or $0.38 per share, compared to $3.9 million, or $0.51 per share, in the first six months of 1996. Revenues for the first six months of 1997 were $3.5 million, compared to $3.0 million in the first six months of 1996. The revenues for 1997 include $2.0 million from the sales of Cimetidine formulations to SmithKline, while the revenues for 1996 included a payment of $1.5 million received from G.D. Searle & Co., in the first quarter of 1996 as a non-recurring licensing fee. Dr. Gérard Soula, President and Chief Executive Officer of Flamel, noted that, "Research and development costs for the second quarter of 1997 were $2.2 million, an increase of $0.7 million over the same period a year ago. This increase, reflects both the higher level of spending on clinical trials -- principally the cost of conducting a Phase III study with Viropump, Flamel's twice-daily controlled-relief acyclovir -- and the increase in research and development staff between the two periods. This significantly higher internal R&D effort reflects a strong push by the Company on our Medusa® protein and peptide delivery system, principally focused on preclinical development of our Basulin™ long-acting insulin formulation for the treatment of diabetes."