Astex Pharmaceuticals Reports 2012 Fourth Quarter and Year-End Financial Results

Astex Pharmaceuticals Reports 2012 Fourth Quarter and Year-End Financial
Results

                  Reports Annual Net Income of $8.2 Million

           Dacogen Royalty Revenue Increases 17.5% from Prior Year

         Ends Year with $138 Million in Cash & Marketable Securities

DUBLIN, Calif., Feb. 25, 2013 (GLOBE NEWSWIRE) -- Astex Pharmaceuticals, Inc.
(Nasdaq:ASTX), today reported financial results for the fourth quarter and
year ended December 31, 2012.

The Company reported net income for the 2012 fourth quarter of $4.5 million,
or $0.05 per basic and diluted share, compared with net income of $220,000, or
$0.00 per basic and diluted share, for the same prior year period. The Company
reported net income for the year ended December 31, 2012 of $8.2 million, or
$0.09 per basic and $0.08 per diluted share, compared with net income of $5.5
million, or $0.07 per basic and diluted share, for the same prior year period.

"Financially, operationally, and strategically 2012 was a very good year for
Astex," said James S.J. Manuso, Ph.D., chairman and chief executive officer.
"In 2013, the initial Phase 2 data from the SGI-110 trial will be available,
we will announce our plans for the Phase 3 trial and the initial European
sales for Dacogen® (decitabine) for Injection in Acute Myeloid Leukemia (AML)
will be revealed."

Company Highlights of 2012 include:

  *Royalty revenue was $71.1 million for 2012 compared to $60.5 million for
    2011, an increase of approximately 17.5% from the prior year.
  *The Company ended 2012 with unrestricted cash, cash equivalents, and
    current and non-current marketable securities totaling $138.3 million
    compared to $128.1 million at December 31, 2011.
  *Dacogen was approved in the European Union (EU) for the treatment of adult
    patients (age 65 years and above) with newly diagnosed de novo or
    secondary AML who are not suitable to receive induction chemotherapy.
    During the 2012 fourth quarter the Company earned $5 million upon the
    first commercial sale of Dacogen in the EU.
  *Initiated two Phase 2 clinical trials of SGI-110 in platinum-resistant
    ovarian cancer patients and in advanced hepatocellular carcinoma (HCC)
    patients who failed prior treatment with Nexavar (sorafenib).
  *Initiated two Phase 2 clinical trials of the HSP90 inhibitor AT13387 in
    castration resistant prostate cancer patients and in non-small cell lung
    cancer (NSCLC) patients with anaplastic lymphoma kinase positive (ALK+) or
    other crizotinib sensitive tumors.
  *Initiated the Phase 2 dose expansion segment of the clinical trial of
    SGI-110 in patients with intermediate or high risk MDS or AML.
  *Initiated an epigenetics drug discovery collaboration with The Institute
    of Cancer Research and Cancer Research Technology Limited, as well as a
    five-year strategic drug discovery alliance with the UK's Cancer Research
    Technology Limited (CRT) and Newcastle University.

2012 Fourth Quarter Financial Results

Total revenues for the 2012 fourth quarter were $24.1 million compared with
$21.2 million for the same prior year period. Total revenues for the 2012
fourth quarter include royalty revenue of $19.1 million compared with $15.4
million for the same prior year period. Total revenues for the 2012 fourth
quarter also include development and license revenue of $5.0 million compared
with $5.8 million for the same prior year period.

Total operating expenses for the 2012 fourth quarter were $22.8 million,
compared with $21.9 million for the same prior year period. The primary
reasons for the increase in total operating expenses for the 2012 fourth
quarter compared with the same prior year period are due to increased research
and development initiatives associated with SGI-110, AT13387 and other
programs, offset by lower overall general and administrative expenses and
lower charges for impairment of intangibles. The non-cash amortization of
intangibles was $2.0 million for the 2012 fourth quarter compared with $1.7
million for the same prior year period. There was no charge for impairment of
intangibles for the 2012 fourth quarter compared with $1.3 million for the
same prior year period.Stock-based compensation expense, a non-cash expense,
was $624,000 for the 2012 fourth quarter, compared with $769,000 for the same
prior year period.

The Company reported net income for the 2012 fourth quarter of $4.5 million,
or $0.05 per basic and diluted share, compared with net income of $220,000, or
$0.00 per basic and diluted share, for the same prior year period.Included in
2012 fourth quarter net income is an income tax benefit of $3.1 million
compared with an income tax benefit of $1.0 million for the same prior year
period.The income tax benefit for the current and prior year fourth quarter
is primarily due to the recognition of a tax benefit associated with the
amortization of deferred tax liabilities resulting from the acquisition of
Astex Therapeutics Limited in 2011, a change in the UK tax rates, and foreign
research and development tax credits related to the UK subsidiary.

2012 Year-End Financial Results

Total revenues for 2012 were $83.2 million compared with $66.9 million for the
same prior year period.Total revenues for 2012 includes royalty revenue of
$71.1 million compared with $60.5 million for the same prior year
period.Total revenues for 2012 also include development and license revenue
of $12.1 million compared with $6.4 million for the same prior year period.

Excluding the gain on disposition of assets and sale of products, total
operating expenses for 2012 were $91.5 million compared with $65.2 million for
the same prior year period.The primary reasons for the increase in total
operating expenses for 2012 compared with the same prior year period are the
consolidation of research and development and general and administrative costs
related to the acquisition of Astex Therapeutics Limited effective July 20,
2011, increased research and development activities from product development
and clinical trial programs associated with SGI-110, AT13387 and other
programs, amortization of intangibles, and charges for impairment of
intangibles offset by lower overall general and administrative expenses.A
non-cash charge for amortization of intangibles was $8.0 million for 2012
compared with $3.2 million for the same prior year period.A non-cash charge
for impairment of intangibles was $7.4 million for 2012 compared with $1.3
million for the same prior year period.Stock-based compensation expense, a
non-cash expense that is included in operating expenses, was $3.1 million for
2012 compared with the same amount for the same prior year period.

The gain on disposition of assets and sale of products for 2012 was $1.3
million compared to $700,000 for the same prior year period.Included in this
category was a gain on sale of products for 2012 of $700,000 compared with an
identical amount for the same prior year period, and relates to the receipt of
additional contractual payments resulting from the 2007 sale of the worldwide
rights for Nipent® (pentostatin for injection) to Mayne Pharma (acquired by
Hospira, Inc. in February 2007).No additional payments are due in the future
under the agreement.

The Company reported net income for 2012 of $8.2 million, or $0.09 per basic
and $0.08 per diluted share, compared with net income of $5.5 million, or
$0.07 per basic and diluted share, for the same prior year period.Included in
net income for 2012 is a $2.6 million gain on sale of investments related to
the disposition of an equity position held in another company while there was
no similar gain in the same prior year period.Net income for 2012 also
includes an income tax benefit of $13.0 million compared with an income
benefit of $3.3 million for the same prior year period.The income tax
benefits for the current and prior year period are primarily due to the
recognition of a tax benefit associated with the amortization of deferred tax
liabilities resulting from the acquisition of Astex Therapeutics Limited in
2011, a change in the UK tax rates, and a foreign research and development tax
credit related to the UK subsidiary.

Financial Position

As of December 31, 2012, the Company had $138.3 million in unrestricted cash,
cash equivalents, and current and non-current marketable securities compared
to $128.1 million at December 31, 2011.

2013 Revised Operational Guidance

The operational guidance for 2013 has been revised as follows:


2013 Annual Operational Guidance
(In $000's, except per share amount)
                                                    
Revenues:                                            
Royalty revenue                                      $55,000
Development & license revenue(a)                    --
Total revenues                                       55,000
Operating expenses (b):                              
Research & development                               67,000
Amortization of intangibles                          8,000
General & administrative                             15,000
Total operating expenses                             90,000
Loss from operations                                 (35,000)
Income tax benefit                                   5,000
Net loss                                             $(30,000)
                                                    
Net loss per average share outstanding               $(0.32)
Weighted average shares outstanding                  94,000
                                                    
(a) Though the Company anticipates earning additional development and license
revenue from its partnered programs we do not provide guidance to such
revenue due to the general uncertainty around, and timing of, milestone
achievements and payments.
(b) Includes total non-cash charges of approximately $12 million for 2013.

Conference Call Information

Astex Pharmaceuticals will host a conference call to discuss the 2012 fourth
quarter and year-end financial results today at 1:30 p.m. PT / 4:30 p.m. ET.A
live webcast of the conference call is accessible via the investor relations
section of the Company's website at http://www.astx.com.A webcast replay of
the conference call will be available for 30 days.

About Astex Pharmaceuticals

Astex Pharmaceuticals is dedicated to the discovery and development of novel
small molecule therapeutics with a focus on oncology.The Company is
developing a proprietary pipeline of novel therapies and is creating de-risked
products for partnership with leading pharmaceutical companies.Astex
Pharmaceuticals developed Dacogen and receives significant royalties on global
sales.

For more information about Astex Pharmaceuticals, Inc., please visit
http://www.astx.com.

The Astex Pharmaceuticals, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=12273

Forward-Looking Statements

This press release contains "forward-looking" statements within the meaning of
Section 21A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and is subject to the safe harbor
created thereby.Actual results could differ materially from those projected
in the forward-looking statements as a result of a number of risks and
uncertainties.These forward-looking statements include, but are not limited
to, the stated expectation regarding 2013 being a dynamic year with the
initial Phase 2 data being produced by SGI-110 and the ramp up of European
sales for Dacogen in AML; statements regarding financial guidance, which
include expectations regarding royalty revenue, development and license
revenue, research and development expenses and general and administrative
expenses, amortization of intangibles, estimates of net income or loss and
anticipated tax benefits and statements about expected losses or
profitability; expectations regarding our clinical trials including the
production and timing of clinical data from these trials; and estimates
regarding our total expected shares outstanding.Important factors that could
cause actual results to differ materially from the expectations reflected in
the forward-looking statements include, but are not limited to: failure to
achieve the results included in the financial guidance; the ability to
generate global sales of Dacogen; the ability to develop our current and
future pipeline into commercially viable drugs; the outcomes of our on-going
clinical trials, including the timing of clinical proof of concept data from
these trials; risks and uncertainties related to the achievement of
developmental milestones with respect to the compounds in development; the
research and development of SGI-110, AT13387 and other programs; the decision
by certain strategic partners whether or not to license and then develop and
commercialize the products that are the subject of our collaboration with them
and whether any of those products will be commercially successful.In general,
our future success is dependent upon numerous factors, including our ability
to generate pre-clinical development candidates for selection into clinical
testing, obtaining regulatory approval of product development programs,
conducting and completing clinical trials, obtaining regulatory approval of
our products and product candidates, our ability to successfully partner with
leading pharmaceutical companies, and creating opportunities for future
commercialization of compounds.Our future revenue and operating and net loss
or income could be worse than anticipated if demand for our products is less
than expected, if our partnerships and collaborations with other parties are
not successful, if our drug pipeline does not progress, or if the
introductions of new products are delayed, for any reason, including
regulatory delay.References made to the discussion of risk factors are
detailed in the Company's filings with the Securities and Exchange Commission
including reports on its most recently filed Form 10-K and Form 10-Q.These
forward-looking statements are made only as of the date hereof, and we
disclaim any obligation to update or revise the information contained in any
such forward-looking statements, whether as a result of new information,
future events or otherwise.

 Condensed Consolidated Statements of Operations and Balance Sheets to follow

ASTEX PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
                                                             
                                  Three months ended  Year ended
                                   December 31,        December 31,
                                  2012      2011      2012      2011
                                                               
Revenues:                                                     
Royalty revenue                    $19,061 $15,371 $71,091 $60,519
Development and license revenue    5,000    5,833    12,068   6,395
Total revenues                     24,061   21,204   83,159   66,914
                                                             
Operating expenses:                                           
Research and development           17,327   14,365   60,418   43,895
General and administrative         3,481    4,595    15,662   16,842
Amortization of intangibles        1,969    1,730    8,005    3,215
Impairment of intangibles          --       1,250    7,402    1,250
Gains on disposition of assets and --       --       (1,276)  (700)
sale of products
Total operating expenses           22,777   21,940   90,211   64,502
                                                    
Income (loss) from operations      1,284    (736)    (7,052)  2,412
                                                             
Interest income                    52       72       188      226
Gain on sale of investments and    --       --       2,583    --
fixed assets
Other than temporary decline in    --       --       (524)    --
value of investments
Other income (expense)             52       (102)    20       (384)
Income (loss) before income taxes  1,388    (766)    (4,785)  2,254
                                                             
Income tax benefit                 3,139    986      13,032   3,288
                                                             
Net income                         $4,527  $220    $8,247  $5,542
Net income per common share:                                  
Basic                             $0.05   $0.00   $0.09   $0.07
Diluted                            $0.05   $0.00   $0.08   $0.07
Weighted average shares                                       
outstanding:
Basic                              93,530    92,930    93,264    75,072
Diluted                            100,941   93,382    101,987   75,751


ASTEX PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                                
                                                December 31,
                                                2012       2011
                                                          
ASSETS
                                                          
Current assets:                                          
Cash and cash equivalents                       $15,496  $39,788
Marketable securities                           122,727   86,444
Accounts receivable                           1,059     5,189
Income tax receivable                           4,892     2,963
Prepaid expenses and other current assets       2,333     2,186
Total current assets                            146,507   136,570
                                                          
Marketable securities, non-current            40        1,819
Property, plant and equipment, net              5,749     7,013
Goodwill                                        46,790    44,794
Other intangible assets, net                    74,514    86,198
Other assets                                    1,564     554
Total assets                                    $275,164 $276,948
                                                          
LIABILITIES & STOCKHOLDERS' EQUITY
                                                          
Current liabilities:                                     
Accounts payable                               $9,238   $7,529
Accrued compensation                            4,076     5,324
Other accrued liabilities                     619       613
Deferred acquisition consideration              2,213     17,353
Deferred tax liability                          3,494     3,342
Deferred revenue                                --        509
Total current liabilities                       19,640    34,670
                                                          
Warrant liability                               276       187
Deferred acquisition consideration, non-current 14,763    11,624
Deferred tax liability, non-current             3,543     9,545
Deferred revenue, non-current                   --        921
Total liabilities                               38,222    56,947
                                                          
Total stockholders' equity                    236,942   220,001
Total liabilities and stockholders' equity      $275,164 $276,948

CONTACT: Timothy L. Enns
         Astex Pharmaceuticals, Inc.
         Senior Vice President
         Corporate Communications & Marketing
         Tel:  +1 (925) 560-2810
         E-mail:  tim.enns@astx.com
        
         Susanna Chau
         Astex Pharmaceuticals, Inc.
         Manager
         Investor Relations
         Tel:  +1 (925) 560-2845
         E-mail:  susanna.chau@astx.com
        
         Alan Roemer
         The Trout Group
         Managing Director
         Tel:  +1 (646) 378-2945
         E-mail: aroemer@troutgroup.com

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