ANNUAL FINANCIAL REPORT 2010 2010 - TiGenix

Cellerix’ research and development expenditures decreased(b) Selling, general and administrative expenses13% between 2009 and 2010. This decrease is mainly due toShown below is an itemisation of the “Selling, general andmeasure adopted by the board of directors, which decided notadministrative expenses” headingto go ahead with the clinical development of Ontaril in view ofthe results of the FATT 1 Phase III clinical trials.Years ended December 31Thousands of Euro (€) Notes 2010 2009 2008Personnel costs 9.1.5.5 2,475 2,607 2,429Depreciations 162 113 50Operating and general costs 2,041 2,975 2,882Total 4,678 5,695 5,361Cellerix’ selling, general and administrative expenses decreased18% between 2009 and 2010. This decrease is mainly due tomeasure adopted by the board of directors, which decided notto go ahead with the clinical development of Ontaril in viewof the results of the FATT 1 Phase III clinical trials. As a result,several measures were adopted to cut expenses, including theimplementation of workforce adjustment plan in early 2010.9.1.5.5 Personnel costsThe table below highlights the number of employees and theiraggregate remuneration at the end of the year.Years ended December 31Thousands of Euro (€) 2010 2009 2008Executives 4 6 6Supervisors 10 16 16Technical staff 15 34 30Other 6 16 6Total 35 72 58Their aggregate remuneration comprised:Wages, salaries, fees and bonuses 3,183 3,879 2,936Social security cost 521 482 466Share-based compensation 627 836 665Severance costs 566 44 -Other costs 48 81 43Total 4,945 5,322 4,110In February 2010, as a result of the decision to abandon, for thetime being, with the clinical development of Ontaril, Cellerixredefined its business plan, which included the implementationof a workforce adjustment plan (ERE), affecting 31 employees,with an actual cost of €566k. The caption “severance” includesthose payments associated to workforce plan adjustment.Wage and salaries decreased in 2010 because the reduction ofthe headcount.209 •