Tranzyme Pharma Announces First Quarter 2013 Financial Results

Tranzyme Pharma Announces First Quarter 2013 Financial Results

RESEARCH TRIANGLE PARK, N.C., May 9, 2013 (GLOBE NEWSWIRE) -- Tranzyme Pharma
(Nasdaq:TZYM) ("Tranzyme"), a biopharmaceutical company focused on
discovering, developing and commercializing novel, mechanism-based
therapeutics, today announced its financial results for the first quarter
ended March 31, 2013.

Select First Quarter 2013 Financial Results

Total revenue for the first quarter of 2013 was $0.6 million compared to $2.6
million in the same period last year. The decrease in revenue was primarily
due to completion of the amortization of deferred revenue from the upfront
licensing fee received from our collaboration with Norgine B.V. Research and
development expenses were $1.9 million in the first quarter 2013 as compared
to $8.1 million for the same period in 2012. 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 $2.1
million in the first quarter of 2013 versus $1.9 million in the same period
last year, reflecting increased expenses relating to legal fees for our
evaluation of strategic alternatives. The Company reported a consolidated net
loss of $3.4 million for the three months ended March 31, 2013 as compared to
a net loss of $8.4 million in the same period of 2012.

Recent Developments

In April 2013, Tranzyme and Ocera Therapeutics, Inc. ("Ocera") announced they
have entered into a definitive agreement under which Ocera will merge with a
subsidiary of Tranzyme in an all-stock transaction. The merger is expected to
create a NASDAQ-listed company focused on the development of novel
therapeutics for patients with acute and chronic decompensated liver disease,
an area of high unmet medical need. Upon closing, the company will be named
"Ocera Therapeutics, Inc." The merger is expected to close in the third
quarter of 2013, subject to approval by a majority of Tranzyme stockholders,
review by the Securities and Exchange Commission and customary closing
conditions as detailed in the merger agreement.

About Tranzyme Pharma

Tranzyme Pharma is a biopharmaceutical company focused on discovering,
developing and commercializing novel, mechanism-based therapeutics. All of
Tranzyme'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. Additional information on Tranzyme
can be found at

About Ocera Therapeutics

Ocera Therapeutics, based in San Diego, California, is a privately held
biopharmaceutical company focused on the development and commercialization of
proprietary compounds to treat acute and chronic liver diseases. Ocera's lead
drug candidate OCR-002 (ornithine phenylacetate) is an ammonia scavenger
designed to treat hyperammonemia and associated hepatic encephalopathy in
patients with liver cirrhosis, acute liver failure and acute liver injury.
OCR-002, through its dual mechanism of action, directly lowers circulating
blood levels of ammonia by enabling alternate metabolic pathways in the muscle
and kidney in patients with decompensated liver cirrhosis, and or liver
failure from other causes. Planning is underway to initiate a
Company-sponsored Phase 2b, randomized, double-blind, placebo-controlled,
efficacy study of OCR-002 as a treatment for acute hepatic encephalopathy in
hospitalized patients with liver cirrhosis. Enrollment is expected to begin in
late 2013. OCR-002 also is the subject of two ongoing, externally-sponsored,
Phase 2a studies in patients. Data from these studies are expected in 2014.

In addition to OCR-002, Ocera has developed Zysa™ (AST-120) a spherical carbon
adsorbent, for the treatment of irritable bowel syndrome. Ocera has raised
over $60 million dollars in venture financing from funds including Domain
Associates, Sofinnova Ventures, Thomas, McNerney & Partners, Greenspring
Associates and InterWest Partners. Additional information on Ocera can be
found at

Forward-Looking Statements

Certain statements in this communication regarding the proposed merger
(including statements relating to satisfaction of the conditions to and
consummation of the proposed merger) constitute "forward-looking statements"
within the meaning of Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act and 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

Risks and uncertainties for Tranzyme and Ocera and of the combined company
include, but are not limited to: inability to complete the proposed merger and
other contemplated transactions; liquidity and trading market for shares prior
to and following the consummation of the proposed merger and proposed
financing; costs and potential litigation associated with the proposed merger;
failure or delay in obtaining required approvals by the SEC or any other
governmental or quasi-governmental entity necessary to consummate the proposed
merger, including our ability to file an effective proxy statement in
connection with the proposed merger and other contemplated transactions, which
may also result in unexpected additional transaction expenses and operating
cash expenditures on the parties; inability or the delay in obtaining required
regulatory approvals for product candidates, and/or which may result in
unexpected cost expenditures; failure to issue Tranzyme common stock in the
proposed merger and other contemplated transactions exempt from registration
or qualification requirements under applicable state securities laws; the
price of the financing transaction in connection with the proposed merger and
contemplated transactions being materially lower than the current weighted
average trading price of Tranzyme's common stock, or the aggregate amount of
cash received from such financing transaction being less than anticipated;
uncertainties in obtaining successful clinical results for product candidates
and unexpected costs that may result therefrom; failure to realize any value
of certain product candidates developed and being developed, including with
respect to OCR-002, in light of inherent risks and difficulties involved in
successfully bringing product candidates to market; inability to develop new
product candidates and support existing products; the approval by the FDA and
EMA and any other similar foreign regulatory authorities of other competing or
superior products brought to market; risks resulting from unforeseen side
effects; risk that the market for the combined company's products may not be
as large as expected; inability to obtain, maintain and enforce patents and
other intellectual property rights or the unexpected costs associated with
such enforcement or litigation; inability to obtain and maintain commercial
manufacturing arrangements with third party manufacturers or establish
commercial scale manufacturing capabilities; loss of or diminished demand from
one or more key customers or distributors; unexpected cost increases and
pricing pressures; continuing or deepening economic recession and its negative
impact on customers, vendors or suppliers; failure to obtain the necessary
stockholder approvals or to satisfy other conditions to the closing of the
proposed merger and the other contemplated transactions; a superior proposal
being submitted to either party; uncertainties of cash flows and inability to
meet working capital needs; cost reductions that may not result in anticipated
level of cost savings or cost reductions prior to or after the consummation of
the proposed merger; and risks associated with the possible failure to realize
certain benefits of the proposed merger, including future financial, tax,
accounting treatment, and operating results. Many of these factors that will
determine actual results are beyond Tranzyme's, Ocera's, or the combined
company's ability to control or predict.

Other risks and uncertainties are more fully described in our Annual Report on
Form 10-K for the year ended December 31, 2012 filed with the SEC, and in
other filings that Tranzyme makes and will make with the SEC in connection
with the proposed merger and other contemplated transactions, including the
proxy statement to be filed in connection with the proposed merger and other
contemplated transactions. Existing and prospective investors are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date hereof. The statements made in this press release speak
only as of the date stated herein, and subsequent events and developments may
cause our expectations and beliefs to change. While we may elect to update
these forward-looking statements publicly at some point in the future, we
specifically disclaim any obligation to do so, whether as a result of new
information, future events or otherwise, except as required by law. These
forward-looking statements should not be relied upon as representing our views
as of any date after the date stated herein.

Important Information and Where to Find It

Tranzyme and Ocera and certain of their directors and executive officers may
become participants in the solicitation of proxies from Tranzyme stockholders
in connection with the proposed merger and related transactions. Additional
information regarding persons who may, under the rules of the Securities and
Exchange Commission, be deemed to be participants in the solicitation of the
Tranzyme stockholders in connection with the proposed merger, and who have
interests, whether as security holders, directors or employees of Tranzyme or
Ocera or otherwise, which may be different from those of Tranzyme stockholders
generally, can be found in the Form 8-K filed by Tranzyme on April 24, 2013,
and will otherwise be provided in the proxy statement and other materials to
be filed with the Securities and Exchange Commission.

This press release does not constitute an offer to sell or the solicitation of
an offer to buy any securities. A definitive proxy statement and a proxy card
will be filed with the Securities and Exchange Commission and will be mailed
to Tranzyme's stockholders seeking any required stockholder approvals in
connection with the proposed transactions. BEFORE MAKING ANY VOTING OR
charge, copies of the definitive proxy statement and any other documents filed
by Tranzyme with the SEC in connection with the proposed transactions at the
Securities and Exchange Commission's website (, at
Tranzyme's website (, or by writing to the Secretary,
Tranzyme, Inc. at 5001 South Miami Boulevard, Suite 300, Durham, North
Carolina 27703.

                           Financial Tables Follow

Tranzyme, Inc.
Consolidated Statements of Comprehensive Income
(In thousands, except share and per share amounts)
                                                       Three Months Ended
                                                       March 31,
                                                       2013       2012
Licensing and royalty revenue                           $599     $1,443
Research revenue                                        --         1,165
Total revenue                                           599        2,608
Operating expenses:                                               
Research and development                                1,856      8,140
General and administrative                              2,136      1,948
Total operating expenses                                3,992      10,088
Operating loss                                          (3,393)    (7,480)
Interest expense, net                                   (2)        (432)
Other income (expense), net                             2          (508)
Net income (loss)                                       $ (3,393)  $ (8,420)
Net income (loss) per share—basic and diluted           $ (0.12)   $(0.34)
Shares used to compute net loss per share—basic and     27,600,437 24,601,447
Other comprehensive income (loss):                                
Net income (loss)                                       $(3,393) $(8,420)
Foreign currency translation adjustment                 (40)       20
Comprehensive income (loss)                             $(3,433) $(8,400)

Consolidated Balance Sheets
(In thousands, except share and per share amounts)
                                          March 31, December31,
                                          2013      2012
Current assets:                                     
Cash and cash equivalents                  $10,812 $15,319
Accounts receivable, net                   390       152
Investment tax credits receivable          731       746
Prepaid expenses and other assets          134       369
Total current assets                       12,067    16,586
Investment tax credits receivable          101       --
Furniture, fixtures and equipment, net     841       942
Total assets                               $13,009 $17,528
Liabilities and stockholders' equity                
Current liabilities:                                
Accounts payable                           $736    $1,678
Accrued liabilities                        659       840
Current portion of deferred revenue        300       599
Total current liabilities                  1,695     3,117
Other long-term liabilities                132       137
Total liabilities                          1,827     3,254
Total stockholders' equity                 11,182    14,274
Total liabilities and stockholders' equity $13,009 $17,528

CONTACT: Inquiries:
         Susan Sharpe
         Director, Corporate Communications
         (919) 328-1109
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