NORTHBROOK, Ill., Feb. 26, 2009 (GLOBE NEWSWIRE) -- Nanosphere, Inc. (Nasdaq:NSPH), a leader in the development and commercialization of advanced molecular diagnostics systems, today reported financial results for the fourth quarter and year ended December 31, 2008.

"Our progress toward commercializing our products, and building and expanding our quality customer base, continue on target," said William Moffitt, Nanosphere's president and chief executive officer. "In January we filed a de novo 510(k) submission for our HFE, or hemochromatosis genetic test, with the U.S. Food and Drug Administration (FDA)."

Mr. Moffitt continued, "Just this week we also filed a 510(k) submission for the Verigene SP, a new version of our molecular diagnostics workstation that simplifies the testing process by adding automated sample preparation. Moreover, we also commenced FDA clinical trials for our cardiac troponin assay and anticipate submitting its 510(k) application in the second quarter."

"These new products," he said, "along with our cystic fibrosis assay and respiratory virus panel, currently pending clearance in the FDA, will significantly add to the value of our nanotechnology-based molecular diagnostics platform," Mr. Moffitt concluded.

Revenues for the full year 2008 were $1.4 million compared to $1.2 million for 2007. Product revenue increased to $1.0 million for 2008 from $110,000 a year ago due to sales and rentals of the Verigene System following FDA clearance in late 2007. Revenues from grant and government contracts totaled $346,000 in 2008 compared to $1.1 million in 2007.

During the fourth quarter of 2008 revenue totaled $313,000, all of which came from Verigene System sales. This compares with total revenue of $188,000 in the 2007 fourth quarter, of which revenue from contracts and government grants was $138,000.

For 2008, research and development expenses increased to $23.7 million from $21.4 million in 2007. Sales, general and administrative expenses were relatively flat at $13.6 million compared to $13.4 million in 2007.

In the 2008 fourth quarter, research and development expenses were $6.0 million, up from $5.2 million in the same period a year-ago. Sales, general and administrative expenses decreased to $3.1 million from 2007's $3.8 million.

Conference Call Details

The company will hold a live conference call and webcast for investors on Thursday, February 26, 2009 at 5:00 P.M., Eastern Standard Time. The teleconference can be accessed by dialing 888-680-0893 (U.S./Canada) or 617-213-4859 (international), participant code 18366125. The call will also be broadcast live over the Internet and can be accessed by interested parties at the Investor Relations tab on the Nanosphere website: www.nanosphere.us. For interested individuals unable to join the call or webcast, a replay will be available through March 12, 2009, by dialing 888-286-8010 or for international calls, 617-801-6888, pass code 20134655, or on the company's website.

About Nanosphere, Inc.

Nanosphere develops, manufactures and markets an advanced molecular diagnostics platform, the Verigene(r) System, for direct genomic and ultra-sensitive protein detection. This easy to use and cost effective platform enables simple, low cost and highly sensitive genomic and protein testing on a single platform. Nanosphere is based in Northbrook, IL. Additional information is available at http://www.nanosphere.us.

The Nanosphere, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4344

Except for historical information, the matters discussed in this press release are "forward-looking statements" and are subject to risks and uncertainties. Actual results could differ materially from these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the following: (i) Nanosphere's ability to develop commercially viable products; (ii) Nanosphere's ability to achieve profitability; (iii) Nanosphere's ability to produce and market its products; (iv) Nanosphere's ability to obtain regulatory approval of its products; (v) Nanosphere's ability to protect its intellectual property; (vi) competition and alternative technologies; and (vii) Nanosphere's ability to obtain additional financing, if and when necessary, to support its operations. Additional risks are discussed in the Company's current filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The forward-looking statements are made as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

                         Nanosphere, Inc.
                     Statements of Operations

                                     Years Ended December 31,
                             ----------------------------------------
                                 2008          2007          2006
                             ------------  ------------  ------------
                                           As Adjusted   As Adjusted

 REVENUE:
 Grant and contract revenue  $    346,070  $  1,056,874  $  1,006,351
 Product sales                  1,020,662       110,490       131,660
                             ------------  ------------  ------------
   Total revenue                1,366,732     1,167,364     1,138,011
 COSTS AND EXPENSES:
 Cost of product sales          1,464,066        86,349        31,049
 Research and development      23,675,138    21,445,994    18,185,564
 Sales, general, and
  administrative               13,615,322    13,443,304     5,415,525
                             ------------  ------------  ------------
   Total costs and expenses    38,754,526    34,975,647    23,632,138
                             ------------  ------------  ------------
 Loss from operations         (37,387,794)  (33,808,283)  (22,494,127)
 OTHER INCOME (EXPENSE):
 Change in fair value of
  convertible derivative
  liability                            --   (14,860,901)   (2,916,822)
 Change in fair value of
  preferred stock warrants             --    (4,414,207)     (119,914)
 Foreign exchange loss            (23,691)      (52,362)           --
 Interest expense - related
  party                                --            --      (146,550)
 Interest expense              (2,080,629)   (1,977,619)       (7,506)
 Interest income                2,450,118     1,914,188     1,415,001
                             ------------  ------------  ------------
   Total other income
    (expense)                     345,798   (19,390,901)   (1,775,791)
                             ------------  ------------  ------------
 NET LOSS                     (37,041,996)  (53,199,184)  (24,269,918)
 Accumulated convertible
  preferred stock dividends            --    (5,476,287)   (4,413,591)
 Convertible preferred stock
  redemption value
  adjustment                           --      (608,940)  (17,737,544)
                             ------------  ------------  ------------
 NET LOSS ATTRIBUTABLE
  TO COMMON STOCK            $(37,041,996) $(59,284,411) $(46,421,053)
                             ============  ============  ============
 Net loss per common
  share - basic and diluted  $      (1.67) $     (14.18) $     (53.63)
 Weighted average number of
  common shares outstanding
   - basic and diluted         22,213,164     4,180,979       865,559
 
 
                          Nanosphere, Inc.
                      Condensed Balance Sheets

                                           December 31,  December 31,
                                               2008          2007
                                           ------------  ------------
                                                         As Adjusted

 Cash and cash equivalents                 $ 75,356,960  $114,312,573
 Other current assets                         2,672,954     2,674,205
                                           ------------  ------------
 Total current assets                        78,029,914   116,986,778
 Net property and equipment                   7,294,224     7,033,597
 Intangible assets - net of accumulated
  amortization                                1,443,582     1,779,934
 Other assets                                   128,190       163,553
                                           ------------  ------------
 Total assets                              $ 86,895,910  $125,963,862
                                           ============  ============

 Current liabilities                          9,002,665     9,301,903
 Long term liabilities                        3,352,137     7,462,237
 Total stockholders' equity                  74,541,108   109,199,722
                                           ------------  ------------
 Total liabilities and stockholders'
  equity                                   $ 86,895,910  $125,963,862
                                           ============  ============

CONTACT:  Nanosphere, Inc.
          Investors:
          Roger Moody, Chief Financial Officer
          847-400-9021
          rmoody@nanosphere.us

          The Torrenzano Group
          Media:
          Rick Anderson
          212-681-1700, Ext. 115
          randerson@torrenzano.com