The Company reported a net loss of $7.7 million or $0.23 per share for the third quarter of 2012 as compared to a net loss of $9.6 million or $0.28 per share for the third quarter of 2011.
Revenue for the nine months ended September 30, 2012 was $40.9 million compared to $1.0 million in the same period of 2011. The year-over-year increase was primarily related to $38.9 million in deferred revenue which was recognized as a result of the termination of the Telles joint venture in February of this year. Increases in grant and product revenues during the first nine months of 2012 compared to the first nine months of 2011 of $0.8 million and $0.5 million, respectively, were partially offset by a $0.3 million decrease in license and royalty fees received from Tepha, Inc., a related party. The Company deferred $0.6 million of product revenue to its fourth quarter as a result of its newly adopted product return policy.
Cost of product revenues was $0.8 million during the nine months ended September 30, 2012 and primarily reflects the cost of inventory shipped to customers, inventory storage and shipping costs associated with customer sales, and warehouse consolidation activities. Research and development expenses were $16.0 million for the first nine months of 2012 compared to $18.4 million for the same period in 2011. The nine month decrease of $2.4 million is primarily the result of decreased employee compensation and benefit expenses of $0.7 million, net of one-time restructuring expenses of $0.5 million, reductions in the use of external research and development support of $1.1 million, and decreased licensing fees and travel related expenses of $0.3 million each. Selling, general and administrative expenses were $11.0 million for the first nine months of 2012 as compared to $11.9 million for the comparable nine month period in 2011. The decrease of $0.9 million is primarily the result of decreased employee compensation and benefit expenses of $0.8 million, net of one-time restructuring expenses of $0.4 million, and a decline in travel expenses of $0.1 million.