71
AntisenseDrugDevelopment
The following table sets forth expenses for ourmajor antisense drugdevelopment projects (in thousands):
YearEnded
December 31,
2012
2011
KYNAMRO ................................................................................. $
10,920 $
13,719
Other antisense development products .........................................
54,291
47,395
Development overhead costs ........................................................
5,350
5,708
Non-cash compensation expense related to equity awards ...........
2,482
2,908
Total antisense drugdevelopment ............................................ $
73,043 $
69,730
Antisense drug development expenditureswere $70.6million for the year endedDecember 31, 2012 compared to$66.8
million for 2011. The higher expenses in2012were primarilydue to an increase indevelopment costs associatedwithourmaturing
pipeline of drugs offset, inpart, by lower development expenses related toKYNAMRO. All amounts exclude non-cash compensation
expense related to equity awards.
Manufacturing andOperations
Ourmanufacturing andoperations expenseswere as follows (in thousands):
YearEnded
December 31,
2012
2011
Manufacturing andoperations ...................................................... $
19,232 $
19,506
Non-cash compensation expense related to equity awards ...........
999
1,101
Totalmanufacturing andoperations ......................................... $
20,231 $
20,607
Manufacturing andoperations expenses for the year endedDecember 31, 2012were $19.2million anddecreased slightly
compared to$19.5million for 2011. All amounts exclude non-cash compensation expense related to equity awards.
R&DSupport
The following table sets forth information onR&D support costs (in thousands):
YearEnded
December 31,
2012
2011
Personnel costs ............................................................................. $
9,231 $
8,665
Occupancy ....................................................................................
6,909
9,446
Patents ..........................................................................................
3,868
4,306
Depreciation and amortization ......................................................
3,129
4,032
Insurance ......................................................................................
1,143
884
Other .............................................................................................
3,104
2,591
Non-cash compensation expense related to equity awards ...........
1,657
2,085
Total R&D support costs .......................................................... $
29,041 $
32,009
R&D support costs for the year endedDecember 31, 2012were $27.4million compared to$29.9million for 2011. The
decrease in2012 compared to the same period in2011was primarily because the leases on our former research anddevelopment
facilities expired at the endof 2011 and as a resultwe recorded less rent expense in2012. Althoughour rent expensewas lower, we
had higher interest expense in2012because accounting rules required us to record the cost of our current primary research and
development facility as a fixed assetwith a corresponding liability, which is discussedbelow in
Interest Expense
. Other significant
decreases inR&D support costswere due to a decrease indepreciation and amortizationbecause of non-cash charges for patents and
patent applications thatwewrote off in2011 and a change in the amortizationperiodwemade in2011 for a license agreement offset,
in part, by an increase in litigation costs related toour patent infringement lawsuit against Santaris PharmaA/S. All amounts exclude
non-cash compensation expense related to equity awards.
