SAN FRANCISCO, Nov. 10 /PRNewswire-FirstCall/ -- Medivation, Inc. (Nasdaq: MDVN) today reported on its corporate progress and financial results for the quarter ended September 30, 2008.

"The third quarter represented another quarter of significant achievement and progress and was capped with the signing of our partnering agreement with Pfizer for Dimebon. This collaboration not only gives us access to a world-class partner capable of maximizing global commercialization, but also provides significant funding allowing us to invest in all of our clinical programs and actively pursue other drug candidates," said David Hung, M.D., president and chief executive officer of Medivation. "We are working with Pfizer on an extensive program to support a broad label for Dimebon in Alzheimer's disease beyond our original plan to pursue the treatment of mild-to-moderate Alzheimer's, and to achieve comprehensive and expeditious regulatory submissions and market acceptance. Accordingly, together we intend to expand development of Dimebon to include new Phase 3 trials in addition to the CONNECTION study. We expect to begin the new trials in 2009 and to file a New Drug Application (NDA) for a broader Alzheimer's disease label in 2011."

    Corporate Update

    Dimebon: Drug candidate to treat Alzheimer's and Huntington's diseases

    -- Entered into an agreement with Pfizer Inc. to jointly develop and
       commercialize Dimebon for the treatment of Alzheimer's and Huntington's
       diseases.  Under the terms of the agreement, Medivation has received an
       up-front cash payment of $225 million and is eligible to receive
       payments of up to $500 million upon the attainment of development and
       regulatory milestones, plus additional undisclosed commercial milestone
       payments.

    -- Enrollment in CONNECTION, our confirmatory Phase 3 trial in
       mild-to-moderate Alzheimer's disease, continues on track.  All 30 of
       our U.S. sites have been opened, and we expect the majority of our
       ex-U.S. sites to be opened by the end of November.  We expect to
       complete enrollment of this trial in 2009.

    -- Completed a randomized, double-blind safety and tolerability study of
       combination therapy with Dimebon and donepezil (Aricept(R)) in patients
       with Alzheimer's disease, which found the combination to be well
       tolerated with no serious adverse events.

    -- Plan to initiate new Phase 3 studies in 2009 to seek further
       differentiation of Dimebon to include moderate-to-severe Alzheimer's
       disease, adjunctive use with cholinesterase inhibitors, and
       twelve-month efficacy.

    -- Received a Corporate Achievement Award from the Huntington's Disease
       Society of America (HDSA) for exemplifying leadership in the fight
       against Huntington's disease and other neurodegenerative diseases.

    -- Plan to initiate the next Huntington's disease efficacy study in 2009.

    MDV3100: Drug candidate to treat castration-resistant prostate cancer

    -- Presented data at the 20th EORTC-NCI-AACR Symposium on "Molecular
       Targets and Cancer Therapeutics" from an ongoing open-label,
       dose-escalation, U.S.-based Phase 1-2 clinical trial in prostate cancer
       patients who have failed standard hormonal therapies.  Results showed
       encouraging and durable anti-tumor activity in the three expanded dose
       groups tested thus far, as measured by prostate specific antigen (PSA)
       declines, radiographic findings, circulating tumor cell (CTC) changes,
       and time on treatment.  MDV3100 has been generally well tolerated, with
       no reports of serious adverse events deemed related to the drug.

    -- Approximately 120 patients have been enrolled in the trial with
       enrollment completed at doses up to 360 mg/day.  A total of 73 patients
       in the three lowest expanded dose groups (60, 150, and 240 mg/day) have
       been followed for more than 24 weeks.  Of these 73 patients, 31
       patients (42 percent) have received MDV3100 for greater than 24 weeks.
       Dose escalation in the trial is continuing; the 360 mg/day expansion
       group is completely enrolled, dose escalation is in progress at 480
       mg/day, and initial dosing at 600 mg/day has started.  Thus far a
       maximum tolerated dose (MTD) has not been reached.

    -- Medivation expects to seek FDA agreement to begin a pivotal Phase 3
       registration study in castration-resistant prostate cancer patients in
       2009.

Third Quarter 2008 Financial Results

Medivation reported a net loss for the quarter ended September 30, 2008 of $20.5 million, or $0.68 per share, compared with a net loss of $9.4 million, or $0.34 per share, for the same period in 2007. For the nine months ended September 30, 2008, the net loss was $54.5 million, or $1.86 per share, compared with a net loss of $22.2 million, or $0.80 per share, for the same period in 2007.

Total operating expenses for the nine months ended September 30, 2008 were $20.6 million, compared with $9.8 million for the same period in 2007. The increase in operating expenses for the third quarter of 2008 compared with the same period in 2007 is primarily due to increased development costs associated with Dimebon and MDV3100.

For the nine months ended September 30, 2008, total operating expenses were $55.3 million, compared with total operating expenses of $23.7 million for the same period in 2007. These figures include non-cash stock-based compensation expense of $6.4 million in the nine months ended September 30, 2008 compared with $4.3 million for the same period in 2007. Pfizer will fund 60 percent of U.S. Dimebon-related development expenses incurred on or after October 21, 2008, the closing date of our collaboration agreement, and 100 percent of ex-U.S. Dimebon-related development expenses. Thus, we expect that Dimebon-related operating expenses after cost sharing payments from Pfizer will decrease in the fourth quarter of 2008 compared with the third quarter. We intend to provide full-year 2009 financial guidance in the first quarter of 2009.

Cash and cash equivalents at September 30, 2008 totaled $20.4 million, compared with $43.3 million at December 31, 2007. On October 27, 2008, Medivation received its $225 million up-front payment from Pfizer pursuant to the Dimebon collaboration agreement. Even after taking into account the expanded Dimebon development being undertaken with Pfizer, the upfront payment and development milestone payments Medivation is eligible to receive under the Pfizer agreement significantly exceed the Company's share of presently budgeted development and pre-launch commercialization costs for Dimebon.

Conference Call Information

To participate in today's live call beginning at 4:30 p.m. Eastern Time by telephone, please call 877-340-7912 from the U.S. or +719-325-4872 internationally. In addition, the live conference call is being webcast and can be accessed on the "Events and Presentations" page of the "Investor Relations" section of the Company's website at http://www.medivation.com. A replay also will be available for 30 days following the live call.

About Medivation

Medivation, Inc. is a biopharmaceutical company focused on the rapid development of novel small molecule drugs to treat serious diseases for which there are limited treatment options. Medivation aims to transform the treatment of these diseases and offer hope to critically ill patients and their caregivers. The Company's current clinical development program includes a pivotal and confirmatory Phase 3 trial of Dimebon in Alzheimer's disease and a Phase 1-2 clinical trial of MDV3100 in patients with castration-resistant (also known as hormone-refractory) prostate cancer. Medivation recently announced that it plans to continue further development of Dimebon in patients with mild-to-moderate Huntington's disease based on the positive results seen in its Phase 2 trial. In September 2008, Medivation entered into a global agreement with Pfizer Inc to develop and commercialize Dimebon for the treatment of Alzheimer's and Huntington's diseases. For more information, please visit us at http://www.medivation.com.

This press release contains forward-looking statements, including statements regarding future clinical development plans and milestones, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause Medivation's actual results to differ significantly from those projected, including, without limitation, risks related to progress, timing and results of Medivation's clinical trials, difficulties or delays in obtaining regulatory approval, enrollment of patients in Medivation's clinical trials, partnering of Medivation's product candidates, manufacturing of Medivation's product candidates, competition with Medivation's product candidates should they receive marketing approval, the adequacy of Medivation's financial resources, unanticipated expenditures or liabilities, intellectual property matters, and other risks detailed in Medivation's filings with the Securities and Exchange Commission, including its quarterly report on Form 10-Q filed today with the SEC. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. Medivation disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release.

                       ~financial statements to follow~



                               MEDIVATION, INC.
                        (A DEVELOPMENT STAGE COMPANY)
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In thousands, except per share data)
                                 (Unaudited)
                                                               Period from
                                                                Inception
                    Three Months Ended   Nine Months Ended (September 4, 2003)
                      September 30,         September 30,           to
                    2008        2007      2008        2007  September 30, 2008
    Operating
     expenses:
      Research
       and
       develop-
       ment       $15,514      $6,797   $41,728     $16,306       $84,067
      General
       and
       admin-
       istrative    5,122       3,026    13,532       7,383        32,694

        Total
         operating
         expenses  20,636       9,823    55,260      23,689       116,761

    Loss from
     operations   (20,636)     (9,823)  (55,260)    (23,689)     (116,761)
    Other income
     (expense):
      Interest
       income,
       net            170         460       735       1,522         3,674
      Other
       income
       (expense),
       net             10           -        (4)         (3)       (1,642)
        Total
         other
         income
         (expense)    180         460       731       1,519         2,032

    Net loss     $(20,456)    $(9,363) $(54,529)   $(22,170)    $(114,729)

    Basic and
     diluted net
     loss per
     share         $(0.68)     $(0.34)   $(1.86)     $(0.80)

    Weighted
     average
     common
     shares
     used
     in the
     calculation
     of basic
     and
     diluted
     net loss
     per share     30,022      27,797    29,273      27,776



                               MEDIVATION, INC.
                        (A DEVELOPMENT STAGE COMPANY)
                    CONDENSED CONSOLIDATED BALANCE SHEETS
               (in thousands, except share and per share data)
                                 (unaudited)

                                                   September 30,  December 31,
                                                       2008         2007
    ASSETS
    Current assets:
      Cash and cash equivalents                      $20,374        $43,258
      Prepaid expenses and other current assets        1,683            991
        Total current assets                          22,057         44,249

    Property and equipment, net                          728            689
    Intellectual property, net                            55             58
    Other non-current assets                           1,195            600
    Total assets                                     $24,035        $45,596

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
      Accounts payable                                $6,203         $1,747
      Accrued expenses                                 8,793          2,218
      Other current liabilities                           87             70
        Total current liabilities                     15,083          4,035

    Other non-current liabilities                        426            492
    Series A redeemable preferred stock                   11             11
        Total liabilities                             15,520          4,538

    Stockholders' equity:
      Preferred stock, $0.01 par value per share;
       1,000,000 shares authorized; no shares
       issued and outstanding                              -              -
      Common stock, $0.01 par value per share;
       50,000,000 shares authorized; issued and
       outstanding 30,079,390 shares at                  301            288
       September 30, 2008 and 28,837,290 at
       December 31, 2007
    Additional paid-in capital                       122,943        100,970
    Deficit accumulated during the development
     stage                                          (114,729)       (60,200)
        Total stockholders' equity                     8,515         41,058

    Total liabilities and stockholders' equity       $24,035        $45,596

SOURCE Medivation, Inc.