MAP Pharmaceuticals Reports Third Quarter of 2012 Financial Results

     MAP Pharmaceuticals Reports Third Quarter of 2012 Financial Results

PR Newswire

MOUNTAIN VIEW, Calif., Nov. 1, 2012

MOUNTAIN VIEW, Calif., Nov. 1, 2012 /PRNewswire/ --MAP Pharmaceuticals, Inc.
(Nasdaq: MAPP) today announced financial results for the third quarter ended
September 30, 2012.

The net loss for the three months ended September 30, 2012 was $12.6 million,
compared to net income of $8.2 million during the same period in 2011. The net
loss for the nine months ended September 30, 2012 was $43.8 million, compared
to a net loss of $19.1 million during the same period in 2011. The financial
results in 2011 were impacted positively by the recognition of a $20.0 million
milestone payment received in August 2011 pursuant to a collaboration
agreement with Allergan, Inc.

MAP Pharmaceuticals had cash and cash equivalents of $114.2 million as of
September 30, 2012, compared to $98.8 million as of December 31, 2011. The
September 30, 2012 cash balance reflects the net proceeds of approximately $56
million from an equity offering completed in August 2012.

"It has been a productive time for the company as we recently resubmitted our
LEVADEX NDA to the FDA," said Timothy S. Nelson, president and chief executive
officer of MAP Pharmaceuticals. "We continue to dedicate ourselves to making
this potential new treatment for migraine sufferers available to many of the
millions of patients whose migraines are not well treated with the options
available today."

Three and Nine Month Financial Results

Revenues for the three and nine months ended September 30, 2012 were $0.9
million and $2.8 million, respectively, compared to $20.8 million and $22.2
million for the same periods in 2011. The revenues for both years were due to
amortization of a $60.0 million nonrefundable upfront cash payment received in
February 2011, pursuant to a collaboration agreement with Allergan entered
into in January 2011. In addition, in August 2011 Allergan paid the Company a
milestone payment of $20.0 million, which was recognized as collaboration
revenue during the three months ended September 30, 2011.

Research and development (R&D) expenses for the three and nine months ended
September 30, 2012 were $7.9 million and $26.6 million, respectively, compared
to $6.7 million and $25.6 million for the same periods in 2011. For the three
months ended September 30, 2012 compared to the same period in 2011, the
increase in R&D expenses was due primarily to an increase in expenses related
to early stage research projects. For the nine months ended September 30, 2012
compared to the same period in 2011, the increase in R&D expenses was due
primarily to an increase in expenses related to early stage research projects
and an increase in personnel related expenses, including stock-based
compensation, partially offset by decreases in expenses related to the LEVADEX
program and other administrative expenses.

Sales, general and administrative (SG&A) expenses for the three and nine
months ended September 30, 2012 were $5.6 million and $20.0 million,
respectively, compared to $5.9 million and $15.5 million for the same periods
in 2011. For the three months ended September 30, 2012 compared to the same
period in 2011, the decrease in SG&A expenses was due primarily to a decrease
in professional services, partially offset by an increase in personnel related
expenses, including stock-based compensation, and an increase in other
administrative expenses. For the nine months ended September 30, 2012 compared
to the same period in 2011, the increase in SG&A expenses was due primarily to
an increase in personnel related expenses, including stock-based compensation,
and an increase in other administrative expenses, partially offset by a
decrease in professional services.

For the three and nine months ended September 30, 2012, non-cash stock-based
compensation and depreciation were approximately $2.4 million and $7.7
million, respectively.

About MAP Pharmaceuticals

MAP Pharmaceuticals is a biopharmaceutical company focused on developing and
commercializing new therapies to address undermet patient needs in neurology.
The Company is developing LEVADEX®, an orally inhaled investigational drug for
the acute treatment of migraine. The U.S. Food and Drug Administration (FDA)
reviewed the New Drug Application (NDA) for LEVADEX and on March 26, 2012, the
Company received a Complete Response letter with respect to this NDA. The
Company recently announced that it has resubmitted its LEVADEX NDA to the FDA.
MAP Pharmaceuticals has entered into a collaboration agreement with Allergan,
Inc. to co-promote LEVADEX to neurologists and pain specialists in the U.S.
and Canada. The Company also applies its proprietary drug particle and
inhalation technologies to generate new pipeline opportunities by enhancing
the therapeutic benefits of proven drugs, while minimizing risk by
capitalizing on their known safety, efficacy and commercialization history.
Additional information about MAP Pharmaceuticals can be found at
http://www.mappharma.com.

Forward-Looking Statements

In addition to statements of historical facts or statements of current
conditions, this press release contains forward-looking statements, including,
without limitation, statements regarding the Company's LEVADEX product
candidate. Actual results may differ materially from current expectations
based on risks and uncertainties affecting the Company's business, including,
without limitation, risks and uncertainties relating to the regulatory process
to have the Company's LEVADEX product candidate approved for commercial use.
The reader is cautioned not to unduly rely on the forward-looking statements
contained in this press release. MAP Pharmaceuticals expressly disclaims any
intent or obligation to update these forward-looking statements, except as
required by law. Additional information on potential factors that could affect
MAP Pharmaceuticals' results and other risks and uncertainties are detailed in
its most recent Quarterly Report on Form 10-Q, available at
http://edgar.sec.gov.

CONTACT: Christopher Y. Chai, Sr. Vice President and Chief Financial Officer
of MAP Pharmaceuticals, Inc., (650) 386-3107; or media, Lisa Borland, (650)
386-3122, lborland@mappharma.com.

MAP PHARMACEUTICALS, INC.
(a development stage enterprise)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                            September 30,  December 31,
                                            2012           2011
ASSETS
Current assets:
Cash and cash equivalents                   $   114,218    $   98,816
Accounts receivable                             448            636
Other current assets                            579            763
Total current assets                            115,245        100,215
Property and equipment, net                     6,488          6,786
Other assets                                    27             27
Restricted investment                           310            310
Total assets                                $   122,070    $   107,338
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities    $   8,908      $   10,793
Current portion of deferred revenue             3,512          3,349
Total current liabilities                       12,420         14,142
Deferred revenue, less current portion          50,634         53,581
Other liabilities                               -              63
Total liabilities                               63,054         67,786
Total stockholders' equity                     59,016         39,552
Total liabilities and stockholders' equity $   122,070    $   107,338

MAP PHARMACEUTICALS, INC.
(a development stage enterprise)
CONDENSED CONSOLIDATED STATEMENTS OFINCOME (LOSS)
(In thousands, except per share amounts)
(Unaudited)
                                  Three Months            Nine Months
                                  EndedSeptember 30,     EndedSeptember 30,
                                  2012        2011        2012        2011
Collaboration revenue             $ 878       $ 20,837  $ 2,784     $ 22,232
Operating expenses:
 Research and development       7,855       6,725     26,590      25,552
 Sales, general and              5,642       5,890     19,950      15,529
administrative
 Total operating expenses        13,497      12,615    46,540      41,081
Income (loss) from operations      (12,619)    8,222     (43,756)    (18,849)
Other expense, net                 (3)         (39)      (1)         (270)
Net income (loss)                 $ (12,622)  $ 8,183   $ (43,757)  $ (19,119)
Net income (loss) per share
         Basic                    $ (0.38)    $ 0.27    $ (1.39)    $ (0.63)
         Diluted                  $ (0.38)    $ 0.26    $ (1.39)    $ (0.63)
Weighted average shares
outstanding used in calculating
net income (loss) per share
         Basic                      33,369      30,440    31,569      30,329
         Diluted                    33,369      31,611    31,569      30,329



SOURCE MAP Pharmaceuticals, Inc.

Website: http://www.mappharma.com
 
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