Transition Therapeutics Announces Second Quarter Fiscal 2013 Financial Results
TORONTO, Feb. 7, 2013
TORONTO, Feb. 7, 2013 /PRNewswire/ - Transition Therapeutics Inc.
("Transition" or the "Company") (TSX: TTH; NASDAQ: TTHI), a product-focused
biopharmaceutical company developing therapeutics for disease indications with
large markets, today announced its financial results for the three and six
month periods ended December 31, 2012.
During fiscal 2013 and up to the date of this press release, the Company
announced the following:
*On November 28, 2012, Transition announced that their licensing partner
Elan had enrolled the first patient in a Phase II study of ELND005 for the
treatment of agitation/aggression in patients with moderate to severe
*On August 30, 2012, Transition announced that their licensing partner Elan
had dosed the first patient in a Phase II clinical study of ELND005 in
Bipolar Disorder. The study is a placebo-controlled, safety and efficacy
study of oral ELND005 as an adjunctive maintenance treatment in patients
with Bipolar 1 Disorder to delay the time to occurrence of mood episodes.
As the first patient has been dosed in the study, Transition received a
milestone payment of US$11 million from Elan.
The Company's cash and cash equivalents and short term investments were
$24,958,522 at December 31, 2012.
The Company's current cash projection indicates that the current cash
resources should enable the Company to execute its core business plan and meet
its projected cash requirements well beyond the next 12 months.
For the three month period ended December 31, 2012, the Company recorded a net
loss of $2,754,534 ($0.10 loss per common share) compared to net loss of
$3,790,421 ($0.15 loss per common share) for the three month period ended
December 31, 2011.
For the six month period ended December 31, 2012, the Company recorded a net
income of $4,981,512 ($0.19 income per common share) compared to a net loss of
$6,661,178 ($0.28 loss per common share) for the six-month period ended
December 31, 2011.
Revenue is nil and $10,815,200 in the three and six month periods ended
December 31, 2012 respectively, compared to nil in both three and six month
period ended December 31, 2011.
In August 2012, Elan dosed the first patient in a Phase 2 clinical study of
ELND005 in Bipolar Disorder. In light of the amendments to the Elan
agreement, the Company has recognized $10,815,200 (US$11,000,000) as revenue
during the first quarter of fiscal 2013 which represents the milestone payment
received from Elan upon their commencement of the next ELND005 clinical trial.
The payment from Elan was received on October 1, 2012.
Research and development expenses increased $80,635 or 4% from $2,060,622 for
the three month period ended December 31, 2011 to $2,141,257 for the three
month period ended December 31, 2012. The increase is largely due to an
increase in clinical development costs related to TT-401/402, which has been
offset by decreases in clinical development costs related to TT-301/302 and
salaries and related costs associated with headcount reductions.
For the six month period ended December 31, 2012, research and development
expenses decreased $118,543 or 3% to $4,195,803 from $4,314,346 for the same
period in fiscal 2012. The decrease is primarily due to decreases in clinical
development costs related to TT-301/302 and salaries and related costs
associated with headcount reductions. The decrease is largely offset by
increased clinical development costs related to TT-401/402.
General and administrative expenses decreased by $683,472 or 45% from
$1,532,912 for the three month period ended December 31, 2011 to $849,440 for
the three month period ended December 31, 2012. For the six month period
ended December 31, 2012, general and administrative expenses decreased
$956,616 or 36% to $1,666,342 from $2,622,958 for the same period in fiscal
The decreases in general and administrative expenses for both the three and
six month periods ended December 31, 2012 are due to decreases in legal
consulting fees, facility lease costs, and investor relation and business
development expenses, as well as decreased salaries and related costs
resulting from headcount reductions as the comparative periods included
severances relating to terminations.
Transition is a biopharmaceutical company, developing novel therapeutics for
disease indications with large markets. Transition's lead product is ELND005
for the treatment of Alzheimer's disease and bipolar disorder. Transition
also has an emerging pipeline of innovative preclinical and clinical drug
candidates. The other drugs in the pipeline that the Company is developing are
for anti-inflammatory and metabolic indications. Transition's shares are
listed on the NASDAQ under the symbol "TTHI" and the Toronto Stock Exchange
under the symbol "TTH". For additional information about the Company, please
Extracts of the Financial Statements to Follow:
CONSOLIDATED BALANCE SHEETS
In Canadian Dollars December 31, 2012 June 30, 2012
Cash and cash equivalents 18,955,854 12,955,081
Short term investments 6,002,668 6,057,264
Trade and other receivables 48,408 43,658
Investment tax credits receivable 370,289 241,951
Prepaid expenses and deposits 458,037 316,286
Property and equipment 194,181 215,000
Intangible assets 16,374,143 17,263,790
Total assets 42,403,580 37,093,030
Trade and other payables 896,145 1,178,915
Current portion of contingent 2,321,373 2,321,373
Contingent consideration payable 1,434,958 1,434,958
Leasehold inducement 28,579 34,295
Equity attributable to owners of the
Share capital 165,334,259 165,334,259
Contributed surplus 13,431,445 13,168,411
Share-based payment reserve 3,331,522 2,977,032
Deficit (144,374,701) (149,356,213)
Total liabilities and equity 42,403,580 37,093,030
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
For the six and three month periods ended December 31, 2012 and 2011
Six month Six month Three month Three month
period ended period ended period ended period ended
In Canadian December 31, December 31, December 31, December 31,
Dollars 2012 2011 2012 2011
Licensing fees 10,815,200 - - -
Research and 4,195,803 4,314,346 2,141,257 2,060,622
Selling, general 1,666,342 2,622,958 849,440 1,532,912
Loss on disposal - 118,623 - 38,709
of property and
Operating income 4,953,055 (7,055,927) (2,990,697) (3,632,243)
Interest income 68,489 80,339 34,872 40,412
Interest expense - (851) - (241)
Foreign exchange (40,032) 315,261 201,291 (198,349)
Net income (loss)
income (loss) for
period 4,981,512 (6,661,178) (2,754,534) (3,790,421)
Basic and diluted
net income (loss)
per common share 0.19 (0.28) (0.10) (0.15)
Notice to Readers: Information contained in our press releases should be
considered accurate only as of the date of the release and may be superseded
by more recent information we have disclosed in later press releases, filings
with the OSC, SEC or otherwise. Except for historical information, this press
release may contain forward-looking statements, relating to expectations,
plans or prospects for Transition, including conducting clinical trials. These
statements are based upon the current expectations and beliefs of Transition's
management and are subject to certain risks and uncertainties that could cause
actual results to differ materially from those described in the
forward-looking statements. These risks and uncertainties include factors
beyond Transition's control and the risk factors and other cautionary
statements discussed in Transition's quarterly and annual filings with the
SOURCE Transition Therapeutics Inc.
For further information on Transition, visitwww.transitiontherapeutics.com,
Dr. Tony Cruz
Chairman & Chief Executive Officer
Transition Therapeutics Inc.
Phone: (416) 260-7770, x.223
Chief Financial Officer
Transition Therapeutics Inc.
Phone: (416) 260-7770, x.202
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