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Transcept Pharmaceuticals Reports First Quarter 2013 Financial Results

    Transcept Pharmaceuticals Reports First Quarter 2013 Financial Results

Conference call scheduled for 4:30 PM Eastern time today

PR Newswire

POINT RICHMOND, Calif., May 8, 2013

POINT RICHMOND, Calif., May 8, 2013 /PRNewswire/ -- Transcept Pharmaceuticals,
Inc. (Nasdaq: TSPT), a specialty pharmaceutical company focused on the
development and commercialization of proprietary products that address
important therapeutic needs in the field of neuroscience, today announced
financial results for the three months ended March31, 2013.

Transcept reported cash, cash equivalents and marketable securities of $81.1
million at March31, 2013.

"As we continue our work with Purdue to support the commercialization of
Intermezzo, we are focused on building a pipeline of products that address
unmet needs in the field of neuroscience," stated Glenn A. Oclassen, President
and CEO of Transcept. "Our business development efforts are aided by our
significant corporate resources, including a proven new drug evaluation and
development team and a strong balance sheet. We plan to put these assets to
use in development opportunities that allow us to reach important value
inflection milestones within our existing cash resources."

Three months ended March 31, 2013 financial results

For the quarter ended March31, 2013, Transcept recorded $0.5 million of
royalty revenue on Intermezzo net sales generated by Purdue. The royalty
revenue was offset by $6.3 million related to a $10 million contribution by
Transcept in December 2012 to an Intermezzo direct-to-consumer (DTC)
advertising campaign led by Purdue. Transcept is recognizing this
contribution as an offset against revenue over an estimated seven month period
beginning December 1, 2012 and ending on June 30, 2013, as the advertising
costs are incurred. This resulted in negative net revenue of $5.8 million for
the quarter ended March31, 2013. There was no revenue for the quarter ended
March31, 2012.

Research and development expense for the quarter ended March31, 2013 was
approximately $1.8 million, compared to approximately $2.4 million for the
same period in 2012. The decrease of approximately $0.6 million was primarily
attributable to the wind down of Transcept's TO-2061 development program.
Research and development expense included non-cash stock compensation expense
of approximately $0.2 million for the quarter ended March31, 2013 and
approximately $0.3 million for the quarter ended March31, 2012.

General and administrative expense remained flat between periods at
approximately $2.8 million. General and administrative expense included
non-cash stock compensation expense of approximately $0.6 million for the
quarter ended March31, 2013, compared to approximately $0.5 million for the
quarter ended March31, 2012.

Net loss for the quarter ended March31, 2013 was approximately $10.5 million,
or $0.56 per share (basic and diluted), compared to net loss of approximately
$5.2 million, or $0.37 per share (basic and diluted), for the quarter ended
March31, 2012. The increase in net loss of $5.3 million was primarily due to
the Transcept contribution to the DTC campaign led by Purdue. The weighted
average shares used to calculate basic and diluted net loss per share were
18,703,413 and 13,925,376 for the quarters ended March31, 2013 and March31,
2012, respectively. At March31, 2013, there were 18,756,029 common shares
outstanding and 3,939,411 common shares underlying outstanding options and
warrants.

Conference call and webcast information

Transcept will host a conference call and webcast on Wednesday, May 8, 2013 at
4:30 p.m. ET to discuss first quarter 2013 financial results. Telephone
numbers for the live conference call are 877-638-4558 (U.S.) or 914-495-8537
(International). The webcast can be accessed on the Investors page of the
Transcept website at www.transcept.com and will be available for replay until
close of business on June 30, 2013.

About Transcept

Transcept Pharmaceuticals, Inc. is a specialty pharmaceutical company focused
on the development and commercialization of proprietary products that address
important therapeutic needs in the field of neuroscience. Intermezzo^®
(zolpidem tartrate) sublingual tablet C-IV is the first FDA approved Transcept
product. Purdue holds commercialization and development rights for Intermezzo
in the United States. For further information about Transcept, please visit
www.transcept.com. For information about Intermezzo, please visit
www.MyIntermezzo.com.

Forward looking statements

This press release contains forward-looking statements that involve
substantial risks and uncertainties. All statements, other than statements of
historical facts, included in this press release regarding our strategy,
future operations, future financial position, future revenues, projected
expenses, prospects, plans and objectives of management are forward-looking
statements. Examples of such statements include, but are not limited to,
statements relating to the following: Purdue's plans to commercialize
Intermezzo, including our collaboration with Purdue; our plans regarding
development opportunities for future products and our expectations regarding
cash usage in regards to such opportunities; and the period over which we
expect to offset against revenue the $10 million contribution related to the
direct-to-consumer advertising campaign led by Purdue. Transcept may not
actually achieve the plans, carry out the intentions or meet the expectations
or projections disclosed in our forward-looking statements and you should not
place undue reliance on these forward-looking statements. Actual results or
events could differ materially from the plans, intentions, expectations and
projections disclosed in the forward-looking statements. Various important
factors could cause actual results or events to differ materially from the
forward-looking statements that Transcept makes, including the following:
achieving acceptance of Intermezzo by physicians, patients and third party
payors; our dependence on our collaboration with Purdue; supplying sufficient
quantities of Intermezzo from third party manufacturers and suppliers to meet
anticipated market demand; the impact of competitive products and the market
for Intermezzo generally; obtaining, maintaining and protecting regulatory
exclusivity and intellectual property protection for Intermezzo; our ability
to identify and finance additional product candidates for in-licensing or
acquisition; and the ability of Transcept to obtain additional funding, if
needed, to support its business activities. These and other risks are
described in greater detail in the "Risk Factors" section of Transcept
periodic reports filed with the SEC. Forward-looking statements do not
reflect the potential impact of any future in-licensing, collaborations,
acquisitions, mergers, dispositions, joint ventures, or investments Transcept
may enter into or make. Transcept does not assume any obligation to update
any forward-looking statements, except as required by law.

Contact:
Transcept Pharmaceuticals, Inc.
Leone Patterson
Vice President, Chief Financial Officer
(510) 215-3500
lpatterson@transcept.com

FINANCIAL TABLES FOLLOW

Transcept Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
                                                       Three Months Ended
                                                       March 31,
                                                       2013         2012
Revenue:
Gross royalty revenue                                  $ 482        $ —
Advertising expense - Purdue Pharma                    (6,312)      —
Net revenue                                            (5,830)      —
Operating expenses:
Research and development                               1,843        2,357
General and administrative                             2,802        2,784
Total operating expenses                               4,645        5,141
Loss from operations                                   (10,475)     (5,141)
Interest and other income (expense), net               (25)         (36)
Net loss                                               $ (10,500)   $ (5,177)
Basic and diluted net loss per share                   $ (0.56)     $ (0.37)
Weighted average shares outstanding                    18,703       13,925
Other comprehensive loss
Changes in unrealized gain (loss) on marketable        —            (29)
securities
Comprehensive loss                                     $ (10,500)   $ (5,206)



Transcept Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
                                            March31, 2013  December31, 2012
                                            (unaudited)
Assets
Current assets:
Cash and cash equivalents                   $    29,708     $     39,368
Marketable securities                       51,368          45,907
Prepaid advertising                         2,259           8,571
Other current assets                        1,645           1,120
Total current assets                        84,980          94,966
Property and equipment, net                 88              128
Goodwill                                    2,962           2,962
Total assets                                $    88,030     $     98,056
Liabilities and stockholders' equity
Total current liabilities                   $    2,114      $     2,663
Stockholders' equity:
Common stock and additional paid in capital 208,519         207,496
Accumulated deficit                         (122,610)       (112,110)
Accumulated other comprehensive income      7               7
Total stockholders' equity                  85,916          95,393
Total liabilities and stockholders' equity  $    88,030     $     98,056





SOURCE Transcept Pharmaceuticals, Inc.

Website: http://www.transcept.com
 
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