Tranzyme Pharma Announces Third Quarter 2012 Financial Results

Tranzyme Pharma Announces Third Quarter 2012 Financial Results

RESEARCH TRIANGLE PARK, N.C, Nov. 8, 2012 (GLOBE NEWSWIRE) -- Tranzyme Pharma
(Nasdaq:TZYM), a biopharmaceutical company focused on discovering, developing
and commercializing novel, first-in-class small molecule therapeutics for the
treatment of gastrointestinal (GI) motility disorders, today announced its
financial results and business update for the third quarter ended September
30, 2012.

"We are pleased to announce that patient dosing is complete in our first
12-week Phase 2b trial evaluating TZP-102 for diabetic gastroparesis, and we
look forward to announcing top-line results by the end of the year," said
Vipin K. Garg, Ph.D., President and CEO of Tranzyme. "In addition, enrollment
is ongoing in DIGEST, our second 12-week Phase 2b trial evaluating dosing
before meals in this same patient population, and we anticipate announcing
top-line results for this trial in the first half of 2013. With no safe and
effective treatments currently available for this condition, we remain
steadfast in our commitment to improve the lives of the millions of
gastroparesis sufferers worldwide."

Select Third Quarter 2012 Financial Results

Total revenue for the third quarter of 2012 was $1.8 million compared to $2.6
million in the same period last year. The decrease in revenue was primarily
due to changes in the amortization period for deferred revenue from the
upfront licensing fee received from our collaboration with Bristol-Myers
Squibb Company. Research and development expenses were $3.8 million in the
third quarter 2012 as compared to $7.0 million for the same period in 2011.
The decrease was primarily due to a decrease in expenses incurred for Phase 3
clinical trials and registration efforts for ulimorelin. General and
administrative expenses were $1.6 million in the third quarter of 2012 versus
$1.7 million in the same period last year, reflecting decreased expenses
relating to pre-commercialization market research activities.

The Company reported a consolidated net loss of $4.0 million in the third
quarter of 2012 compared to a net loss of $6.4 million in the same period of
2011. Cash and cash equivalents at September 30, 2012 were approximately $40.8
million.

Conference Call Details

The Company will host a conference call on Friday, November 9, 2012 at 8:30 am
ET to discuss its third quarter 2012 financial results. To participate in the
live call, please dial (877) 670-9784 (U.S. and Canada) or (970) 315-0430
(international), five to ten minutes prior to the start of the call. A live
audio webcast will also be available in the "Investors" section of the
Tranzyme Pharma website, www.tranzyme.com.

A replay of the conference call will be available from November 9, 2012 at
11:30 am ET through November 16, 2012. Investors may listen to the replay by
dialing (855) 859-2056 (U.S. and Canada) or (404) 537-3406 (international),
with the passcode 39767587. The webcast will also be archived for on-demand
listening for 30 days at www.tranzyme.com.

About Tranzyme Pharma

Tranzyme Pharma is a clinical-stage biopharmaceutical company focused on
discovering, developing and commercializing novel, mechanism-based
therapeutics for the treatment of upper gastrointestinal (GI) motility
disorders. While approximately 40 percent of people in the U.S. are affected
by these persistent and recurring conditions which disrupt the normal movement
of food throughout the GI tract, there are a limited number of safe and
effective treatment options. Tranzyme is developing TZP-102, an oral ghrelin
agonist for treating the symptoms associated with chronic upper GI motility
disorders. Dosing is complete in our first multinational Phase 2b trial
evaluating TZP-102 given once daily in diabetic patients with gastroparesis;
top-line data are expected by year-end 2012. In addition, enrollment is
ongoing in DIGEST, a second Phase 2b trial evaluating TZP-102 given prior to
meals in diabetic patients with gastroparesis; top-line data for this study
are expected in the first half of 2013. By leveraging its proprietary drug
discovery technology, MATCH™, Tranzyme is committed to pursuing first-in-class
medicines to address areas of significant unmet medical needs.

Further information about Tranzyme Pharma can be found on the Company's web
site at www.tranzyme.com.

Forward-Looking Statements

Statements in this press release may include statements which are not
historical facts and are considered forward-looking within the meaning of
Section 27A of the Securities Act and Section 21E of the Securities Exchange
Act, which are usually identified by the use of words such as "anticipates,"
"believes," "estimates," "expects," "intends," "may," "plans," "projects,"
"seeks," "should," "will," and variations of such words or similar
expressions. We intend these forward-looking statements to be covered by the
safe harbor provisions for forward-looking statements contained in Section 27A
of the Securities Act and Section 21E of the Securities Exchange Act and are
making this statement for purposes of complying with those safe harbor
provisions. These forward-looking statements reflect our current views about
our plans, intentions, expectations, strategies and prospects, including the
expected timing of the availability of data from our Phase 2b clinical trials
of TZP-102, which are based on the information currently available to us and
on assumptions we have made. Although we believe that our plans, intentions,
expectations, strategies and prospects as reflected in or suggested by those
forward-looking statements are reasonable, we can give no assurance that the
plans, intentions, expectations or strategies will be attained or achieved.
Furthermore, actual results may differ materially from those described in the
forward-looking statements and will be affected by a variety of risks and
factors that are beyond our control including, without limitation, risks
related to enrollment and successful completion of our trials, risk of
unforeseen side effects, risks related to our collaborations and risks related
to regulatory approval of new drug candidates. Further information on these
and other factors that could affect the company's financial results is
contained in our public filings with the Securities and Exchange Commission
(SEC) from time to time, including our Form 10-Q for the quarter ended June
30, 2012 which was filed with the SEC on August 10, 2012, and subsequent
filings with the SEC. Existing and prospective investors are cautioned not to
place undue reliance on these forward-looking statements, which speak only as
of the date hereof. We assume no obligation to update publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise.

                           Financial Tables Follow

                                      

Tranzyme,Inc.
Consolidated Statements of Comprehensive Income
(Unaudited)
(In thousands, except share and per share amounts)
                                                                
                                                                
                                  Three Months Ended    Nine Months Ended
                                  September 30,         September 30,
                                  2012       2011       2012       2011
Licensing and royalty revenue      $1,230     $1,740     $4,013     $5,511
Research revenue                   589        906        2,825      2,445
Total revenue                      1,819      2,646      6,838      7,956
Operating expenses:                                              
Research and development           3,822      6,975      17,497     17,157
General and administrative         1,568      1,659      5,396      3,915
Total operating expenses           5,390      8,634      22,893     21,072
Operating loss                     (3,571)    (5,988)    (16,055)   (13,116)
Interest expense, net              (882)      (393)      (1,938)    (1,212)
Other income (expense), net        503        (33)       14         142
Net income (loss)                  $(3,950)   $(6,414)   $(17,979)  $(14,186)
Net income (loss) per share—basic  $(0.16)    $(0.26)    $(0.73)    $(0.89)
and diluted
Shares used to compute net loss    25,035,381 24,558,845 24,749,299 15,974,316
per share—basic and diluted
                                                                
Other comprehensive income (loss):                               
Net income (loss)                  $(3,950)   $(6,414)   $(17,979)  $(14,186)
Foreign currency translation       83         (42)       41         (29)
adjustment
Comprehensive income (loss)        $(3,867)   $(6,456)   $(17,938)  $(14,215)


Tranzyme,Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share and per share amounts)
                                                      
                                          September30, December31,
                                          2012          2011
Assets                                                  
Current assets:                                         
Cash and cash equivalents                  $40,774       $40,930
Accounts receivable, net                   1,147         656
Investment tax credits receivable          475           838
Prepaid expenses and other assets          610           1,116
Total current assets                       43,006        43,540
Investment tax credits receivable          275           —
Furniture, fixtures and equipment, net     1,029         1,171
Total assets                               $44,310       $44,711
Liabilities and stockholders' equity                    
Current liabilities:                                    
Accounts payable                           $2,139        $1,971
Accrued liabilities                        1,891         1,549
Current portion of deferred revenue        1,722         5,574
Current portion of notes payable           3,903         238
Total current liabilities                  9,655         9,332
Notes payable, less current portion        15,696        10,734
Other long-term liabilities                144           163
Total liabilities                          25,495        20,229
Total stockholders' equity                 18,815        24,482
Total liabilities and stockholders' equity $44,310       $44,711

CONTACT: Corporate Inquiries:
         Susan Sharpe
         Director, Corporate Communications
         (919) 328-1109
         ssharpe@tranzyme.com
        
         Investor Inquiries:
         David Carey
         Lazar Partners, Ltd.
         (212) 867-1768
         dcarey@lazarpartners.com
 
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