Transition Therapeutics Announces Third Quarter Fiscal 2013 Financial Results
TORONTO, May 7, 2013
TORONTO, May 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 nine
month periods ended March 31, 2013.
During fiscal 2013 and up to the date of this press release, the Company
announced the following:
*On April 30, 2013, Transition announced the results of a five-week proof
of concept clinical study of TT-401 in type 2 diabetic and obese
non-diabetic subjects. In the study, TT-401, a once-weekly administered
peptide, demonstrated significant improvements in glycemic control and
reductions in body weight;
*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
$22,942,039 at March 31, 2013.
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 March 31, 2013, the Company recorded a net
loss of $2,903,331 ($0.11 loss per common share) compared to net loss of
$3,072,112 ($0.11 loss per common share) for the three month period ended
March 31, 2012.
For the nine month period ended March 31, 2013, the Company recorded net
income of $2,078,181 ($0.08 income per common share) compared to a net loss of
$9,733,290 ($0.39 loss per common share) for the nine month period ended March
Revenue is nil and $10,815,200 in the three and nine month periods ended March
31, 2013 respectively, compared to nil in both three and nine month periods
ended March 31, 2012.
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 $483,948 or 26% from $1,896,585
for the three month period ended March 31, 2012 to $2,380,533 for the three
month period ended March 31, 2013. For the nine month period ended March 31,
2013, research and development expenses increased $365,405 or 6% to $6,576,336
from $6,210,931 for the same period in fiscal 2012.
The increases in research and development expenses are primarily due to an
increase in clinical development costs related to TT-401/402, which has been
partially offset by a decrease in clinical development costs related to
TT-301/302 as well as reduced salaries and related costs resulting from
headcount reductions which occurred during the nine month period ended March
General and administrative expenses decreased by $151,183 or 15% from
$1,022,040 for the three month period ended March 31, 2012 to $870,857 for the
same period in fiscal 2013. For the nine month period ended March 31, 2013,
general and administrative expenses decreased $1,107,798 or 30% to $2,537,199
from $3,644,997 for the same period in fiscal 2012.
The decreases in general and administrative expenses for both the three and
nine month periods ended March 31, 2013 are due to decreases in legal
consulting fees and business development expenses. The decrease in general and
administrative expenses for the nine month period ended March 31, 2013 is also
attributed to decreased facility lease costs as well as decreased salaries and
related costs resulting from headcount reductions as the comparative periods
included severances relating to terminations. In both the three and nine month
periods ended March 31, 2013, the decrease in general and administrative
expenses have been partially offset by increased investor relation expenses.
Transition is a biopharmaceutical company, developing novel therapeutics for
disease indications with large markets. The Company's lead CNS drug candidate
is ELND005 for the treatment of Alzheimer's disease and bipolar disorder.
Transition lead metabolic drug candidate is TT-401 for the treatment of type 2
diabetes and accompanying obesity. The Company'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 visit
www.transitiontherapeutics.com. Extracts of the Financial Statements to
CONSOLIDATED BALANCE SHEETS
In Canadian Dollars March 31, 2013 June 30, 2012
Cash and cash equivalents 17,913,332 12,955,081
Short term investments 5,028,707 6,057,264
Trade and other receivables 53,875 43,658
Investment tax credits receivable 165,065 241,951
Prepaid expenses and deposits 472,338 316,286
Property and equipment 184,396 215,000
Intangible assets 15,929,319 17,263,790
Total assets 39,747,032 37,093,030
Trade and other payables 942,192 1,178,915
Current portion of contingent 2,321,373 2,321,373
Contingent consideration payable 1,434,958 1,434,958
Leasehold inducement 25,721 34,295
Equity attributable to owners of
Share capital 165,334,259 165,334,259
Contributed surplus 14,245,402 13,168,411
Share-based payment reserve 2,721,159 2,977,032
Deficit (147,278,032) (149,356,213)
Total liabilities and equity 39,747,032 37,093,030
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND
COMPREHENSIVE INCOME (LOSS)
For the nine and three month periods ended March 31, 2013 and 2012
Nine month Nine month Three month Three month
period ended period ended period ended period ended
March 31, March 31, 2012 March 31, 2013 March 31, 2012
In Canadian Dollars 2013
Licensing fees 10,815,200 - - -
Research and 6,576,336 6,210,931 2,380,533 1,896,584
expenses 2,537,199 3,644,997 870,857 1,022,040
Loss on disposal of
equipment - 125,748 - 7,125
Operating income 1,701,665 (9,981,676) (3,251,390) (2,925,749)
Interest income 107,448 124,352 38,959 44,013
Interest expense - (851) - -
Foreign exchange 269,068 124,885 309,100 (190,376)
Net income (loss)
for the period 2,078,181 (9,733,290) (2,903,331) (3,072,112)
Basic and diluted
(loss) per common
share 0.08 (0.39) (0.11) (0.11)
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.
on Transition, visit www.transitiontherapeutics.com, or contact:
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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