Pain Therapeutics Reports Q3 2012 Financial Results

Pain Therapeutics Reports Q3 2012 Financial Results

On Track With Financial Guidance for 2012

AUSTIN, Texas, Nov. 8, 2012 (GLOBE NEWSWIRE) -- Pain Therapeutics, Inc.
(Nasdaq:PTIE) today reported financial results for the quarter and nine months
ended September 30, 2012. Net loss for Q3 2012 was $1.6 million, or $0.03 per
share, as compared to the net loss in Q3 2011 of $0.8 million, or $0.02 per
share. Net loss for the first nine months of 2012 was $1.7 million, or $0.04
per share, as compared to net loss for the first nine months of 2011 of $2.2
million, or $0.05 per share.

Cash and investments were $92.5 million at September 30, 2012.The Company has
no debt.Management continues to believe net cash usage for full-year 2012
will be under $10.0 million.

"Our financial strategy is to maintain tight fiscal discipline while awaiting
the resubmission of REMOXY to the FDA by our commercial partner, Pfizer," said
Remi Barbier, President & CEO."We believe this drug candidate is
well-partnered, has succeeded in a Phase III efficacy study, has published
results of abuse-resistance, has four issued patents and targets a large
marketplace.The value of these success factors may become more apparent as
Pfizer updates regulatory guidance for REMOXY in the first half of 2013."

Based on management's review of recent written correspondence between Pfizer
and the FDA, management believes Pfizer is well-positioned to address the
concerns described in the FDA's Complete Response Letter for REMOXY.

Q3 2012 Financial Detail

Research and development expenses increased to $2.4 million in Q3 2012 from
$2.0 million in Q3 2011, primarily due to higher non-cash stock-related
compensation costs. Research and development expenses decreased to $5.5
million in the first nine months of 2012 from $6.6 million in the first nine
months of 2011, primarily due to lower headcount and facilities costs.

General and administrative expenses increased to $2.0 million in Q3 2012 from
$1.8 million in Q3 2011, primarily due to higher non-cash stock-related
compensation costs. General and administrative expenses decreased to $5.0
million in the first nine months of 2012 from $5.1 million in the first nine
months of 2011, primarily due to lower headcount and facilities costs.

About REMOXY

Our lead drug candidate is called REMOXY (oxycodone) Extended-Release Capsules
CII. REMOXY is an investigational drug with a unique, controlled release
formulation of oxycodone for patients with moderate-to-severe chronic
pain.REMOXY is designed to discourage common methods of tampering associated
with prescription analgesic misuse and abuse.

  oPfizer is our exclusive, worldwide commercial partner for REMOXY and three
    other abuse-resistant prescription pain medications (except in
    Australia/New Zealand).
  oREMOXY received a Complete Response Letter in December 2008 and in June
    2011.Pfizer has sole responsibility for addressing the concerns described
    in the FDA's Complete Response Letter, at its own expense.
  oOn November 1, 2012, Pfizer announced it plans to meet with the FDA in
    March 2013 to discuss REMOXY.Pfizer also announced the initiation of a
    new pharmacokinetic study with REMOXY.

REMOXY Deal Economics

  *To date, we have received total cash payments of $185.0 million in program
    fees and milestone payments under the strategic alliance with Pfizer in
    connection with the development of REMOXY and three other abuse-resistant
    drug candidates.
  *We are also eligible to receive up to an additional $120.0 million in
    clinical/regulatory milestone payments, including a $15 million payment
    upon FDA approval of REMOXY.
  *Upon the commercial launch of REMOXY, we will receive from Pfizer a
    royalty of 20% of net sales in the United States, except as to the first
    $1.0 billion in cumulative net sales, which royalty is set at 15%. Outside
    the United States, the royalty rate is 10%.
  *We will also receive from Pfizer a supplemental royalty fee payment of
    6.0% to 11.5% of net sales, depending on the range of total dollar sales
    in each year. This supplemental payment is equal to the full amount of our
    financial obligations to Durect Corporation (Nasdaq: DRRX), our exclusive
    supplier of certain excipients in REMOXY.
  *Our development expenses for REMOXY and three other abuse-resistant pain
    medications that are in various stages of development, including
    hydrocodone, hydromorphone and oxymorphone, are reimbursed by Pfizer.
  *Pain Therapeutics retains commercial rights to REMOXY and three other
    abuse-resistant drug candidates in Australia/New Zealand.We have not yet
    announced a market entry strategy for these territories.

About Pain Therapeutics, Inc.

Pain Therapeutics, Inc. is a biopharmaceutical company that develops novel
drugs.The FDA has not approved any of our drug candidates for commercial
sale. For more information, please visit 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").Pain Therapeutics 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 size and potential markets for REMOXY, the
development and commercialization prospects of REMOXY, our projected net cash
usage for 2012, Pfizer's plans with respect to development of REMOXY,
potential future milestone payments and royalties based on revenue from
REMOXY, the potential development of other abuse resistant drug candidates,
funding obligations of Pfizer, or the benefits of REMOXY.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 obtaining regulatory approval of REMOXY
and in development, testing and pursuit of regulatory approval of our other
drug candidates, unexpected adverse side effects or inadequate therapeutic
efficacy of our drug candidates, difficulties or delays in commercialization
efforts with respect to our products, if any are approved for marketing, or
failure of such products to gain market acceptance, the uncertainty of patent
protection for our intellectual property or trade secrets, unanticipated
additional research and development and other costs, potential diversion of
resources from the pursuit of development and commercialization of drug
candidates subject to our strategic alliance with Pfizer as a result of the
acquisition of King Pharmaceuticals, Inc. by Pfizer, the potential for abuse
resistant pain medications or other competing products or therapies to be
developed by competitors and potential competitors or others and difficulties
resulting from, or risks associated with, pending litigation, including
diversion of resources and potential adverse judgments.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.

                          -Financial Tables Follow-

PAIN THERAPEUTICS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
                                                              
                         Three months ended     Nine months ended
                         September 30, 2012     September 30, 2012
Revenue                                                       
Program fee revenue       $2,725    $2,725   $8,173        $8,173
Collaboration revenue     --        24        249            564
Total revenue             2,725      2,749     8,422          8,737
Operating expenses                                            
Research and development 2,379      2,019    5,504          6,589
General and               2,001      1,753     4,975          5,078
administrative
Total operating expenses  4,380      3,772    10,479         11,667
Operating loss            (1,655)    (1,023)   (2,057)        (2,930)
Interest income           105        208       405           708
Net loss                  $(1,550)  $(815)   $(1,652)      $(2,222)
Net loss per share, basic $(0.03)   $(0.02)  $(0.04)       $(0.05)
and diluted
Weighted-average shares
used in computing net     44,601     44,631    44,703         43,987
loss per share, basic and
diluted
                                                             
CONDENSED BALANCE SHEETS
(in thousands)
                                              September 30,   December 31,
                                                 2012            2011^(1)
                                              (Unaudited)     
Assets                                                       
Current assets                                               
Cash, cash equivalents and                     $92,529       $98,131
marketable securities
Other current assets                          378            358
Total current assets                          92,907         98,489
Non-current assets                                           
Property and equipment,                       352            474
net and other assets
Total assets                                  $93,259       $98,963
Liabilities and                                              
stockholders' equity
Current liabilities                                          
Accounts payable and accrued                   $1,300        $1,378
development expenses
Deferred program fee revenue -                 10,897         10,897
current portion
Other accrued                                 1,603          997
liabilities
Total current                                 13,800         13,272
liabilities
Non-current liabilities                                      
Deferred program fee revenue -                 32,690         40,863
non-current portion
Other liabilities                             437            435
Total liabilities                             46,927         54,570
Stockholders' equity                                         
Common Stock and
additional                                     180,187        176,470
paid-in-capital
Accumulated other                             2             128
comprehensive income
Accumulated deficit                           (133,857)      (132,205)
Total stockholders'                           46,332         44,393
equity
Total liabilities and                         $93,259       $98,963
stockholders' equity
                                                             
^(1) Derived from the Company's annual financial statements as of December 31,
2011, included in the Company's Annual Report on Form 10-K filed with the
Securities and Exchange Commission.


CONTACT: Peter S. Roddy
         Vice President and Chief Financial Officer
         Pain Therapeutics, Inc.
         proddy@paintrials.com
         (512) 501-2450
 
Press spacebar to pause and continue. Press esc to stop.