Pain Therapeutics Reports 2012 Financial Results

Pain Therapeutics Reports 2012 Financial Results

Innovation, Disciplined Spending Expected in 2013

AUSTIN, Texas, Feb. 6, 2013 (GLOBE NEWSWIRE) -- Pain Therapeutics, Inc.
(Nasdaq:PTIE) today reported financial results for the full year ended
December 31, 2012. Net loss was $3.4 million in 2012, or $0.08 per share,
compared to a net loss of $2.6 million in 2011, or $0.06 per share.

"We are excited by the prospect of having important regulatory readouts on
REMOXY^® in 2013," said Remi Barbier, Chairman, President & CEO. "In the
interim, we'll maintain our existing corporate strategy to spend modestly and
to keep innovation at the top of our agenda."

At December 31, 2012, cash and equivalents were $56.3 million. The Company has
no debt. Management expects net cash usage for the first half of 2013 to be
under $5.0 million. 

2012 Financial Detail

  * In December 2012, Pain Therapeutics completed a special nondividend
    distribution to shareholders totaling $34.0 million, or $0.75 per share.
     
  * Revenue decreased to $10.9 million in 2012 from $11.5 million in 2011,
    primarily due to lower collaboration revenue from reimbursements of
    research and development expenses under our collaboration agreement with
    Pfizer, Inc. (NYSE:PFE).

  o Research and development expenses decreased to $7.6 million in 2012 from
    $8.3 million in 2011, primarily due to lower headcount and
    facilities-related costs. Research and development expenses included $3.2
    million in non-cash stock related compensation costs in 2012 (including
    $0.8 million related to the nondividend distribution in December 2012) and
    $2.7 million in 2011. 

  o General and administrative expenses increased to $7.2 million in 2012 from
    $6.7 million in 2011, primarily due to higher non-cash stock related
    compensation costs, offset in part by lower headcount and
    facilities-related costs. General and administrative expenses included
    $3.4 million in non-cash stock related compensation costs in 2012
    (including $1.0 million related to the nondividend distribution in
    December 2012) and $2.8 million in 2011. 

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.

  o Pfizer is our exclusive, worldwide commercial partner for REMOXY and three
    other abuse-resistant prescription pain medications (except in
    Australia/New Zealand).
     
  o REMOXY 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. 

REMOXY Deal Economics

  o To date, we have received total cash payments of $185.0 million in program
    fees and milestone payments under our strategic alliance with Pfizer in
    connection with the development of REMOXY and three other abuse-resistant
    drug candidates.
     
  o  We are also eligible to receive up to an additional $120.0 million in
    clinical/regulatory milestone payments, including a $15.0 million payment
    upon FDA approval of REMOXY.
     
  o 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%.
     
  o 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.
     
  o 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.
     
  o 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 potential regulatory readouts or other regulatory
feedback regarding REMOXY development; the company's projected cash
requirements for the first half of 2013; potential future milestone payments
and royalties based on revenue from REMOXY; the potential development of other
abuse-resistant drug candidates; and funding obligations of Pfizer. 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, litigation and
other costs; the timing and receipt of funds from Pfizer; potential diversion
of resources from the pursuit of development and commercialization of drug
candidates subject to our strategic alliance with Pfizer; and the potential
for abuse-resistant pain medications or other competing products or therapies
to be developed by competitors and potential competitors or others. 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,
                             2012         2011       2012          2011^(1)
Revenue                                                             
Program fee revenue           $ 2,468      $ 2,724    $ 10,641      $ 10,897
Collaboration revenue         --           23         249           587
Total revenue                 2,468        2,747      10,890        11,484
Operating expenses                                                  
Research and development      2,101        1,711      7,605         8,300
General and administrative    2,209        1,620      7,182         6,698
Total operating expenses      4,310        3,331      14,787        14,998
Operating loss                (1,842)      (584)      (3,897)       (3,514)
Interest income               46           193        451           901
Net loss                      $ (1,796)    $ (391)    $ (3,446)     $ (2,613)
                                                                    
Net loss per share - basic    $ (0.04)     $ (0.01)   $ (0.08)      $ (0.06)
and diluted 
                                                                    
Weighted-average shares used
in computing net loss per     44,903       44,671     44,753        44,160
share - basic and diluted 
                                                                    
                                                                    
CONDENSED BALANCE SHEETS
                                                     December 31,
                                                     2012          2011^(1)
                                                     (Unaudited)    
Assets                                                              
Current assets                                                      
Cash, cash equivalents and marketable                 $ 56,254      $ 98,131
securities 
Other current assets                                  253           358
Total current assets                                  56,507        98,489
Non-current assets                                                  
Property and equipment, net                           --            122
Other assets                                          352           352
Total assets                                          $ 56,859      $ 98,963
Liabilities and                                                     
stockholders' equity 
Current liabilities                                                 
Accounts payable and accrued development              $ 1,290       $ 1,378
expenses 
Deferred program fee revenue - current                7,832         10,897
portion 
Other accrued liabilities                             877           997
Total current liabilities                             9,999         13,272
Non-current liabilities                                             
Deferred program fee revenue -                        33,287        40,863
non-current portion 
Other liabilities                                     437           435
Total liabilities                                     43,723        54,570
Stockholders' equity                                                
Common stock                                          45            45
Additional paid-in-capital                            148,738       176,425
Accumulated other                                     4             128
comprehensive income 
Accumulated deficit                                   (135,651)     (132,205)
Total stockholders' equity                            13,136        44,393
Total liabilities and                                 $ 56,859      $ 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