Mar. 21, 2006 — Acusphere Inc. (NASDAQ: ACUS), which develops nanoparticle-based drugs, Monday reported financial results for the quarter and year ended Dec. 31, 2005. During 2005, the company recognized $3.4 million in collaboration revenue in connection with its agreement with Nycomed for European marketing rights to the company’s product candidate, AI-700.

As of Dec. 31, 2005, the company reported $6.0 million in deferred revenues relating to this agreement. Under this agreement, as amended, Nycomed is scheduled to pay Acusphere $2.9 million in 2006, including up to $1.85 million which Nycomed agreed to pay to help fund the Company’s qualification of its commercial manufacturing facility for AI-700.

Operating expenses in 2005 increased to $49.6 million, compared to $32.1 million in 2004, primarily due to costs incurred for the Phase 3 clinical program for AI-700 and the one-time $6.2 million write-off in June 2005 related to the acquisition of patents from Schering AG.

As of December 31, 2005, the company’s total assets were $95.8 million of which cash and cash equivalents totaled $51.1 million.