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Exhibit 99.1
 
 AVANIR PHARMACEUTICALS REPORTS SECOND QUARTER FISCAL 2007 FINANCIAL
RESULTS
 ALISO VIEJO, Calif., May 9, 2007 Avanir
 Avanir ®
 Avanir
  2007 Fiscal Second Quarter and Recent Highlights:
 Clinical Programs and Pipeline
 
    
    Reported positive top-line results of a Phase III study for Zenvia in diabetic
peripheral neuropathic (DPN) pain where the primary endpoint was met. These data have been
accepted for presentation at the International Congress on Neuropathic Pain in Berlin on
June 8, 2007. The Company has requested a meeting with the U.S. Food and Drug
Administration (FDA) to discuss the next study for Zenvia for the treatment of DPN pain.
    
    Announced that based on a meeting with the FDA, the Company will conduct an additional
Zenvia trial in patients with IEED to confirm that a proposed lower dose is safe and
effective. Also announced agreement to initiate certain preclinical and clinical
pharmacology studies involving Zenvia. The Company is currently working with the FDA on
clinical trial design and expects to enroll the first patient by calendar year end.
    
    Announced a successful conclusion to the research collaboration with Novartis for the
Macrophage Migration Inhibitor Factor (MIF) program. Novartis has assumed all continuing
research and development activities for the MIF program with plans to further develop the
lead candidate, AVP-28225. The two companies have been involved in a two-year research
collaboration to identify orally active, small molecule inhibitors of MIF for the
treatment of inflammatory diseases. Avanir will receive a milestone payment if the
molecule reaches the next
stage of development and is eligible to receive additional milestone
payments through clinical development and royalty payments on worldwide sales if the
technology is ultimately commercialized.




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
    
    Announced that Avanir and AstraZeneca mutually agreed to end their research
collaboration and license agreement on the Reverse Cholesterol Transport (RCT) program.
The collaboration will end in the third fiscal quarter and the Company will receive no
additional research funding from this collaboration once it terminates. The Company is
evaluating options for the RCT program.
 Company Operations
 
    
    Announced that Keith Katkin, formerly Senior Vice President of Sales and Marketing, was
elected President and CEO, and appointed to the Board of Directors. The Company also
announced that Randall Kaye, M.D., was promoted to Senior Vice President and Chief Medical
Officer from his former position as Vice President, Clinical and Medical Affairs and
announced the appointment of Martin J. Sturgeon as Vice President and Chief Accounting
Officer.
    
    Craig A. Wheeler was elected Chairman of the Board of Directors effective May 3, 2007.
    
    Reported that the Company is in discussions with several parties that have expressed
interest in potentially acquiring certain Company assets, including FazaClo and several
investigational compounds. These discussions remain ongoing and no definitive terms have
been reached at this time.
    
    Announced a planned reduction in headcount and payroll-related expenses associated with
the end of the research collaborations and plans to sub-lease the Companys San Diego
facilities.
 Product Performance
 ®
 
    
    Net wholesaler shipments during the quarter of $4.2 million, compared to $2.7 million in
the second quarter of fiscal 2007, a quarter over quarter increase of 56%.
    
    FazaClo total prescription volume increased 52% over the same quarter last year and 15%
over the previous fiscal quarter.
 Balance Sheet Highlights
  Conference Call and Webcast
 Avanir Avanir




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Avanir
 About Avanir
 Avanir Avanir Avanir www.fazaclo.com Avanir Avanir Avanir ® Avanir www.avanir.com
 Forward Looking Statement
 Avanir Avanir Avanir
 Avanir Avanir  http://www.b2i.us/irpass.asp?BzID=958&to=ea&s=0
 Lippert/Heilshorn & Associates, Inc.  jcain@lhai.com  bvoss@lhai.com




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AVANIR PHARMACEUTICALS
CONSOLIDATED STATEMENTS OF OPERATIONS
March 31, 2007
(Unaudited)
 Three Months ended March 31
    
    
    Six Months ended March 312007
    
    
    2006
    
    
    2007
    
    
    2006REVENUES FROM PRODUCT SALESNet revenues
    
    $
    3,829,111
    
    
    $
    
    
    
    $
    10,099,815
    
    
    $
    Cost of revenues
    
    
    1,308,256
    
    
    
    
    
    
    
    2,655,440
    
    
    
    Product gross margin
    
    
    2,520,855
    
    
    
    
    
    
    
    7,444,375
    
    
    
    REVENUES AND COST OF RESEARCH SERVICES AND OTHERRevenues from research services
    
    
    920,448
    
    
    
    1,956,565
    
    
    
    2,190,692
    
    
    
    4,434,583Cost of research services
    
    
    (607,164
    )
    
    
    (1,795,634
    )
    
    
    (1,771,239
    )
    
    
    (3,811,719
    )Revenues from government research grant services
    
    
    266,728
    
    
    
    75,862
    
    
    
    353,076
    
    
    
    160,687Cost of government research grant services
    
    
    (369,261
    )
    
    
    (96,966
    )
    
    
    (464,988
    )
    
    
    (166,955
    )Revenues from license agreements
    
    
    56,019
    
    
    
    9,342
    
    
    
    113,284
    
    
    
    5,009,342Revenue from royalities and royalty rights
    
    
    779,673
    
    
    
    427,259
    
    
    
    1,502,713
    
    
    
    1,009,304Research services and other gross margin
    
    
    1,046,443
    
    
    
    576,428
    
    
    
    1,923,538
    
    
    
    6,635,242Total gross margin
    
    
    3,567,298
    
    
    
    576,428
    
    
    
    9,367,913
    
    
    
    6,635,242OPERATING EXPENSESResearch and development
    
    
    6,245,285
    
    
    
    6,162,322
    
    
    
    12,151,286
    
    
    
    13,365,128Selling, general and administrative
    
    
    5,330,405
    
    
    
    8,492,115
    
    
    
    18,576,339
    
    
    
    13,260,858Loss from Operations
    
    $
    (8,008,392
    )
    
    $
    (14,078,009
    )
    
    $
    (21,359,712
    )
    
    $
    (19,990,744
    )OTHER INCOME (EXPENSES)Interest expense
    
    
    (315,510
    )
    
    
    (21,403
    )
    
    
    (918,538
    )
    
    
    (44,841
    )Interest income
    
    
    144,862
    
    
    
    564,422
    
    
    
    336,338
    
    
    
    892,588Other
    
    
    284,934
    
    
    
    (5,492
    )
    
    
    430,279
    
    
    
    5,020Loss before income taxes
    
    $
    (7,894,106
    )
    
    $
    (13,540,482
    )
    
    $
    (21,511,633
    )
    
    $
    (19,137,977
    )Provision for inome taxes
    
    
    (13,404
    )
    
    
    (4
    )
    
    
    (13,404
    )
    
    
    (2,421
    )Net loss before cumulative effect of change in acctg principal
    
    
    (7,907,510
    )
    
    
    (13,540,486
    )
    
    
    (21,525,037
    )
    
    
    (19,140,398
    )Cumulative effect of change in acctg principal
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,616,058
    )NET LOSS
    
    $
    (7,907,510
    )
    
    $
    (13,540,486
    )
    
    $
    (21,525,037
    )
    
    $
    (22,756,456
    )BASIC AND DILUTED NET LOSS PER SHARE:
    
    
    (0.20
    )
    
    
    (0.44
    )
    
    
    (0.63
    )
    
    
    (0.76
    )Weighted average shares outstanding
    
    
    39,047,597
    
    
    
    31,086,874
    
    
    
    34,148,261
    
    
    
    29,819,338




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AVANIR PHARMACEUTICALS
SELECTED BALANCE SHEET DATA
March 31, 2007
(Unaudited)
 March 31,
    
    
    September 30,2007
    
    
    2006Cash and Cash Equivalents
    
    $
    5,286,799
    
    
    $
    4,898,214Investments and Restricted Cash
    
    $
    3,382,080
    
    
    $
    19,851,859Receivables, net
    
    $
    3,410,745
    
    
    $
    3,042,468Inventories
    
    $
    3,019,237
    
    
    $
    2,835,203Accounts Payable and Other Current Liabilities
    
    $
    13,427,231
    
    
    $
    27,808,787Deferred Revenues
    
    $
    19,666,433
    
    
    $
    23,309,325Total Debt
    
    $
    23,065,893
    
    
    $
    25,788,310Total Shareholders Equity
    
    $
    (5,848,755
    )
    
    $
    (5,674,535
    )
 AVANIR PHARMACEUTICALS
SELECTED CASH FLOW DATA
March 31, 2007
(Unaudited)
 Six Months EndedMarch 31, 2007Net Loss
    
    $
    (21,525,037
    )Depreciation and Amortization
    
    
    2,787,297Share-based compensation expense (income)
    
    
    (824,871
    )Net Change in operating assets and liabilities
    
    
    (13,760,036
    )Net cash used for operating activities
    
    
    (33,322,647
    )Net cash provided by (used for investing activities)
    
    
    16,459,260Net cash provided by financing activities
    
    
    17,251,972Net increase in cash and cash equivalents
    
    
    388,585Cash and Cash Equivalents at beginning of period
    
    
    4,898,214Cash and Cash Equivalents at end of period
    
    $
    5,286,799Investments and Restricted Cash
    
    
    3,382,080Total Cash and Investments at end of period
    
    $
    8,668,879