Pain Therapeutics Announces Fourth Quarter and Year-End 2005 Financial Results
Tuesday January 17, 9:15 am ET
SOUTH SAN FRANCISCO, Calif., Jan. 17 /PRNewswire-FirstCall/ -- Pain Therapeutics, Inc. (Nasdaq: PTIE - News), a biopharmaceutical company, today reported financial results for the fourth quarter and year ended December 31, 2005.
The net loss for the quarter ended December 31, 2005 was $3.1 million, or $0.07 per share, compared to a net loss of $9.3 million, or $0.22 per share for the fourth quarter of 2004. The net loss for the year ended December 31, 2005 was $30.7 million, or $0.70 per share, compared to a net loss of $37.8 million, or $1.01 per share, for the same period of 2004.
At December 31, 2005 Pain Therapeutics' cash, cash equivalents and marketable securities were $212.7 million. This total included the $150.0 million in upfront fees received from King Pharmaceuticals, Inc. in connection with a recently announced strategic alliance.
"In 2005, we made steady progress against our financial objectives, as demonstrated by the closing of the King deal," said Remi Barbier, Pain Therapeutics' president and chief executive officer. "The recent strengthening of our balance sheet allows Pain Therapeutics to move forward rather aggressively with key clinical programs for Remoxy(TM) and Oxytrex(TM) in 2006 while maintaining a relatively low net cash burn. We forecast a net cash burn rate of about $15 million for 2006 against a cash position of $212.7 million. This amount includes a generous allowance to replenish our pipeline with at least one new IND in our core area of expertise with abuse-resistant opioids."
Program fee revenue resulted from the amortization of the $150 million upfront fee received from King from the beginning of the collaboration in November 2005 to the end of 2005. Collaboration revenue reflects reimbursement of Pain Therapeutics' collaboration expenses to the end of 2005 from King.
Research and development expenses decreased to $7.2 million in the fourth quarter of 2005 from $8.9 million in the fourth quarter of 2004. Research and development expenses decreased to $32.9 million for the year 2005 from $35.1 million for the year 2004. The decrease in research and development expenses was primarily related to the completion of the Phase III study with Oxytrex and the termination of the PTI-901 clinical program.
General and administrative expenses increased to $1.6 million in the fourth quarter of 2005 from $1.0 million in the fourth quarter of 2004. General and administrative expenses increased to $4.9 million for the year 2005 from $3.9 million for the year 2004.
Financial Outlook
At December 31, 2005 Pain Therapeutics' cash, cash equivalents and marketable securities were $212.7 million. Pain Therapeutics expects net cash requirements to be approximately $15 million in 2006, plus or minus 10%.
Conference Call and Webcast Information
Pain Therapeutics will host a conference call today at 9:30 a.m. Pacific Time/12:30 p.m. Eastern Time to discuss this announcement. To participate in the conference call, please dial 888-396-2356 (within the U.S.) or 617-847-8709 (outside the U.S.) fifteen minutes prior to the start of the call. The call reference number is 81544426. A playback of the conference call will be available following the call. To access the playback, please dial 888-286-8010 (within the U.S.) or 617-801-6888 (outside the U.S.) and enter reservation number 88878694. A webcast of the conference call will also be available online at www.paintrials.com.
About Pain Therapeutics, Inc.
We are a biopharmaceutical company that develops novel drugs. We have two drug candidates, Remoxy and Oxytrex, in Phase III clinical programs. Both drugs target different segments of the multi-billion dollar market to treat severe chronic pain, such as persistent low-back pain or pain due to advanced stages of osteoarthritis. For more information, please visit our website (www.paintrials.com).
Note Regarding Forward-Looking Statements: This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the "Act"). PTI disclaims any intent or obligation to update these forward-looking statements, and claims the protection of the Safe Harbor for forward-looking statements contained in the Act. Examples of such statements include, but are not limited to, any statements relating to the timing, scope or expected outcome of the Company's clinical development of its drug candidates, the Company's expected net cash requirements in 2006 and through late-stage development of its drug candidates, the potential benefits of the Company's drug candidates, the Company's plans for filing an IND in 2006 and the size of the potential market for the Company's products. Such statements are based on management's current expectations, but actual results may differ materially due to various factors. Such statements involve risks and uncertainties, including, but not limited to, those risks and uncertainties relating to difficulties or delays in development, testing, regulatory approval, production and marketing of the Company's drug candidates, unexpected adverse side effects or inadequate therapeutic efficacy of the Company's drug candidates that could slow or prevent product approval or market acceptance (including the risk that current and past results of clinical trials are not necessarily indicative of future results of clinical trials), the uncertainty of patent protection for the Company's intellectual property or trade secrets, the Company's ability to obtain additional financing if necessary and unanticipated research and development and other costs. For further information regarding these and other risks related to the Company's business, investors should consult the Company's filings with the Securities and Exchange Commission.
PAIN THERAPEUTICS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2005 2004 2005 2004
Revenues:
Program fee revenue $3,712 $-- $3,712 $--
Collaboration revenue 1,368 -- 1,368 --
Total revenues 5,080 -- 5,080 --
Operating expenses (1):
Research and
development 7,154 8,869 32,938 35,093
General and
administrative 1,577 964 4,859 3,868
Total operating
expenses 8,731 9,833 37,707 38,961
Operating loss (3,561) (9,833) (32,717) (38,961)
Other income:
Interest income 519 517 2,047 1,185
Net loss $(3,132) $(9,316) $(30,670) $(37,776)
Basic and diluted loss
per common share $(0.07) $(0.22) $(0.70) $(1.01)
Weighted-average shares
used in computing basic
and diluted loss per
common share 43,916 42,509 43,795 37,267
(1) Included in research and development and general and administrative
expenses are stock based compensation expenses of $90 thousand and $69
thousand for the three months ended December 31, 2005 and 2004,
respectively, and $248 thousand and $401 thousand for the years ended
December 31, 2005 and 2004, respectively.
PAIN THERAPEUTICS, INC.
CONDENSED BALANCE SHEETS
(in thousands)
December 31, December 31,
2005 2004(2)
(Unaudited)
Assets
Current assets:
Cash, cash equivalents and marketable
securities $212,652 $99,397
Collaboration revenue receivable 889 --
Prepaid expenses 623 259
Total current assets 214,164 99,656
Property and equipment, net 1,556 1,461
Other assets 75 75
Total assets $215,795 $101,192
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $998 $877
Accrued development expense 4,461 6,358
Deferred program fee revenue - current portion 26,200 --
Accrued compensation and benefits 501 415
Other accrued liabilities 187 146
Total current liabilities 32,347 7,796
Non-current liabilities:
Deferred program fee revenue - non-current
portion 120,088 --
Total liabilities 152,435 7,796
Stockholders' equity:
Common stock 44 44
Additional paid-in-capital 206,489 205,920
Accumulated other comprehensive loss (479) (544)
Accumulated deficit (142,694) (112,024)
Total stockholders' equity 63,360 93,396
Total liabilities and stockholders' equity $215,795 $101,192
(2) Derived from audited financial statements.
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