Tranzyme Pharma Announces Fourth Quarter and Full-Year 2012 Financial Results

Tranzyme Pharma Announces Fourth Quarter and Full-Year 2012 Financial Results

RESEARCH TRIANGLE PARK, N.C., March 28, 2013 (GLOBE NEWSWIRE) -- Tranzyme
Pharma (Nasdaq:TZYM), a biopharmaceutical company focused on discovering,
developing and commercializing novel, mechanism-based therapeutics, today
announced its financial results for the fourth quarter and year ended December
31, 2012.

Select Fourth Quarter 2012 Financial Results

Total revenue for the fourth quarter of 2012 was $1.6 million compared to $2.2
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 $3.5 million in the
fourth quarter 2012 as compared to $7.7 million for the same period in 2011.
The decrease was primarily due to a reduction in Phase 3 clinical trial
expenses for ulimorelin and our Phase 2b trial activities for TZP-102. General
and administrative expenses were $1.2 million in the fourth quarter of 2012
versus $2.1 million in the same period last year, reflecting decreased
expenses relating to pre-commercialization and market research activities and
personnel related expenses.

The Company reported a consolidated net loss of $4.9 million for the three
months ended December 31, 2012 as compared to a net loss of $8.0 million in
the same period of 2011.

Select Fiscal Year 2012 Financial Results

Total revenue for fiscal year 2012 was $8.4 million compared to $10.2 million
in 2011. Total operating expenses in 2012 were $27.5 million compared to $30.9
million in 2011. Research and development expenses were $21.0 million compared
to $24.9 million in 2011. The decrease during the period is primarily due to a
reduction in expenses for our Phase 3 clinical trial for ulimorelin offset by
an increase in expenses for our Phase 2b clinical trials for TZP-102. General
and administrative expenses were $6.6 million compared to $6.0 million in
2011, reflecting increased expenses relating to our pre-commercialization and
corporate governance activities. Net loss in fiscal year 2012 was $22.8
million compared to $22.2 million in 2011. Cash and cash equivalents at
December 31, 2012 were approximately $15.3 million. The Company repaid its
outstanding term loan on December 4, 2012.

Recent Developments

In December 2012, the Company stopped enrollment and further clinical
development of its lead product candidate TZP-102, being evaluated in diabetic
patients with gastroparesis, following the results of two Phase 2b trials,
both of which failed to show superiority over placebo.

On February 8, 2013, Tranzyme announced that its Board of Directors had made a
determination to explore and evaluate strategic alternatives, including the
possibility of a merger, sale, other form of business combination, or other
transaction to maximize value to its stockholders. The Company has not made a
decision to pursue any specific transaction or other strategic alternative,
and there is no set timetable for the strategic review process. There can be
no assurance that the exploration of strategic alternatives will result in the
identification or consummation of any transaction. The Company does not intend
to comment further regarding this process until such time as its Board of
Directors has determined the outcome of the process or otherwise has deemed
that disclosure is required or appropriate.

About Tranzyme Pharma

Tranzyme Pharma is a biopharmaceutical company focused on discovering,
developing and commercializing novel, mechanism-based therapeutics. All of the
Company's drug discovery activities are based on its proprietary small
molecule macrocyclic template chemistry (MATCH™) technology, which has also
been successfully used to generate drug candidates in partnership with other
pharmaceutical companies. MATCH enables the rapid construct of synthetic
libraries of drug-like, macrocyclic compounds in a predictable and efficient
manner. By leveraging MATCH, Tranzyme is committed to pursuing first-in-class
medicines to address areas of significant unmet medical need and continues to
pursue funded drug discovery partnerships.

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, 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 September 30, 2012 which was filed with the SEC on
November 9, 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    Twelve Months Ended
                                 December 31,          December 31,
                                2012       2011       2012        2011
Licensing and royalty revenue    $1,234   $1,429   $5,247    $6,940
Research revenue                 375        782        3,200       3,227
Total revenue                    1,609      2,211      8,447       10,167
Operating expenses:                                             
Research and development         3,483      7,727      20,980      24,884
General and administrative       1,165      2,113      6,561       6,028
Total operating expenses         4,648      9,840      27,541      30,912
Operating loss                   (3,039)    (7,629)    (19,094)    (20,745)
Interest expense, net            (439)      (377)      (2,377)     (1,589)
Other income (expense), net      (1,387)    (16)       (1,373)     126
Net income (loss)                $(4,865) $(8,022) $(22,844) $(22,208)
Net income (loss) per            $(0.18)  $(0.33)  $(0.90)   $(1.22)
share—basic and diluted
Shares used to compute net loss  27,600,437 24,569,866 25,465,978  18,140,863
per share—basic and diluted
                                                               
Other comprehensive income                                      
(loss):
Net income (loss)                $(4,865) $(8,022) $(22,844) $(22,208)
Foreign currency translation     (23)       14         18          (15)
adjustment
Comprehensive income (loss)      $(4,888) $(8,008) $(22,826) $(22,223)

                                                      
                                                      
Tranzyme,Inc.
Consolidated Balance Sheets
(Unaudited)
(In thousands, except share and per share amounts)
                                                     
                                                      
                                          December 31, December31,
                                           2012         2011
Assets                                                 
Current assets:                                        
Cash and cash equivalents                  $15,319    $40,930
Accounts receivable, net                   152          656
Investment tax credits receivable          746          838
Prepaid expenses and other assets          369          1,116
Total current assets                       16,586       43,540
Furniture, fixtures and equipment, net     942          1,171
Total assets                               $17,528    $44,711
Liabilities and stockholders' equity                   
Current liabilities:                                   
Accounts payable                           $1,678     $1,971
Accrued liabilities                        840          1,549
Current portion of deferred revenue        599          5,574
Current portion of notes payable           --           238
Total current liabilities                  3,117        9,332
Notes payable, less current portion        --           10,734
Other long-term liabilities                137          163
Total liabilities                          3,254        20,229
Total stockholders' equity                 14,274       24,482
Total liabilities and stockholders' equity $17,528    $44,711

CONTACT: Susan Sharpe
         Director, Corporate Communications
         (919) 328-1109
         ssharpe@tranzyme.com
 
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