Transcept Pharmaceuticals Reports Second Quarter Financial Results

      Transcept Pharmaceuticals Reports Second Quarter Financial Results

Conference call scheduled for 4:30 PM Eastern time today

PR Newswire

POINT RICHMOND, Calif., Aug. 7, 2013

POINT RICHMOND, Calif., Aug. 7, 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 and six months ended June 30, 2013.

Transcept reported cash, cash equivalents and marketable securities of $77.6
million at June30, 2013.

"We continue to believe that Intermezzo will play an important role in the
treatment of middle of the night awakenings followed by difficulty returning
to sleep," stated Glenn A. Oclassen, President and CEO of Transcept. "We are
working closely with Purdue Pharma to explore strategies that can accelerate
Intermezzo prescription trends and to derive value from this important asset
for our shareholders. We are also conducting an extensive new product search
and evaluation process and believe that between now and the end of the year we
will be able to announce progress in re-building our development pipeline."

Three months ended June30, 2013 financial results

For the quarters ended June30, 2013 and June 30, 2012, Transcept recorded
$0.5 million of royalty revenue on Intermezzo net sales generated by Purdue.
The 2013 royalty revenue was offset by $0.3 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 as the advertising costs are
incurred. This resulted in net revenue of $0.2 million for the quarter ended
June30, 2013 compared to $0.5 million for the quarter ended June30, 2012.

Research and development expense for the quarter ended June30, 2013 was
approximately $0.9 million, compared to approximately $2.9 million for the
same period in 2012. The decrease of approximately $2.0 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 $0.1 million for the quarter ended June30, 2013 and
approximately $0.2 million for the quarter ended June30, 2012.

General and administrative expense for the quarter ended June30, 2013 was
approximately $3.0 million, compared to approximately $2.7 million for the
same period in 2012. The increase of approximately $0.3 million reflects an
increase in salary and related benefits as well as increased professional
expenses. General and administrative expense included non-cash stock
compensation expense of approximately $0.6 million for the quarter ended
June30, 2013, compared to approximately $0.5 million for the quarter ended
June30, 2012.

Transcept recorded a goodwill impairment charge of $3.0 million during the
quarter ended June 30, 2013 as a result of an impairment analysis that
concluded that the entire carrying value of goodwill was impaired.

Net loss for the quarter ended June30, 2013 was approximately $6.7 million,
or $0.36 per share (basic and diluted), compared to net loss of approximately
$5.1 million, or $0.30 per share (basic and diluted), for the quarter ended
June30, 2012. The increase in net loss of $1.6 million was primarily due to
the goodwill impairment charge of $3.0 million, partially offset by a
reduction in research and development expenses related to the wind down of the
TO-2061 development program. The weighted average shares used to calculate
basic and diluted net loss per share were 18,757,343 and 17,053,419 for the
quarters ended June30, 2013 and June30, 2012, respectively. At June30,
2013, there were 18,759,888 common shares outstanding and 3,849,203 common
shares underlying outstanding options and warrants.

Six months ended June 30, 2013 financial results

Royalty revenue on Intermezzo net sales generated by Purdue for the six months
ended June 30, 2013 was $1.0 million compared to $0.5 million for the six
months ended June 30, 2012. Intermezzo was commercially launched in April
2012, and royalties earned through June 30, 2012 included three months of
revenue, whereas royalties earned through June 30, 2013 include six months of
revenue. 2013 royalty revenue was offset by $6.6 million related to a $10
million contribution by Transcept in December 2012 to the Intermezzo DTC
advertising campaign. This resulted in negative net revenue of $5.6 million
for the six months ended June 30, 2013 versus net revenue of $0.5 million for
the six months ended June 30, 2012.

Research and development expense for the six months ended June 30, 2013 was
approximately $2.7 million, compared to approximately $5.2 million for the
same period in 2012. The decrease of $2.5 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 $0.4 million for the six months ended June 30, 2013 and
approximately $0.4 million for the six months ended June 30, 2012.

General and administrative expense for the six months ended June 30, 2013 was
approximately $5.8 million, compared to approximately $5.5 million for the
same period in 2012. The increase of $0.3 million was primarily attributable
to an increase in salary and related benefits. General and administrative
expense included non-cash stock compensation expense of approximately $1.2
million for the six months ended June 30, 2013, compared to approximately $1.0
million for the six months ended June 30, 2012.

Transcept recorded a goodwill impairment charge of $3.0 million during the
quarter ended June 30, 2013 as a result of an impairment analysis that
concluded that the entire carrying value of goodwill was impaired.

Net loss for the six months ended June 30, 2013 was approximately $17.2
million, or $0.92 per share (basic and diluted), compared to a net loss of
approximately $10.3 million, or $0.67 per share (basic and diluted), for the
six months ended June 30, 2012. The weighted average shares used to calculate
net loss per share were 18,730,528 and 15,489,403 for the six months ended
June 30, 2013 and 2012, respectively.

Conference call and webcast information

Transcept will host a conference call and webcast on Wednesday, August 7, 2013
at 4:30 p.m. ET to discuss second 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 September 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: our expectations regarding Intermezzo's
role in the treatment of middle of the night awakenings; Purdue's plans to
commercialize Intermezzo, including our collaboration with Purdue and our
ability to accelerate Intermezzo prescription trends and derive value for our
shareholders; our plans regarding development opportunities for future
products and product candidates, including the timing of our announcement
regarding the re-building of our development pipeline; 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      Six Months Ended
                              June 30,                June 30,
                              2013        2012        2013         2012
Revenue:
Gross royalty revenue         $ 481       $ 493       $ 963        $ 493
Advertising expense - Purdue  (283)       —           (6,595)      —
Pharma
Net revenue                   198         493         (5,632)      493
Operating expenses:
Research and development      898         2,859       2,741        5,216
General and administrative    3,030       2,731       5,832        5,515
Goodwill impairment           2,962       —           2,962        —
Total operating expenses      6,890       5,590       11,535       10,731
Loss from operations          (6,692)     (5,097)     (17,167)     (10,238)
Interest and other income     (16)        (43)        (41)         (79)
(expense), net
Net loss                      $ (6,708)   $ (5,140)   $ (17,208)   $ (10,317)
Basic and diluted net loss    $ (0.36)    $ (0.30)    $ (0.92)     $ (0.67)
per share
Weighted average shares       18,757      17,053      18,731       15,489
outstanding
Other comprehensive loss
Changes in unrealized gain
(loss) on marketable          (16)        (2)         (16)         (31)
securities
Comprehensive loss            $ (6,724)   $ (5,142)   $ (17,224)   $ (10,348)







Transcept Pharmaceuticals, Inc.

Condensed Consolidated Balance Sheets

(in thousands)


                                              June30,     December31,
                                              2013         2012
                                              (unaudited)
Assets
Current assets:
Cash and cash equivalents                     $   17,847   $   39,368
Marketable securities                         59,739       45,907
Prepaid advertising                           542          8,571
Prepaid and other current assets              3,111        1,120
Total current assets                          81,239       94,966
Property and equipment, net                   52           128
Goodwill                                      —            2,962
Total assets                                  $   81,291   $   98,056
Liabilities and stockholders' equity
Total current liabilities                     $   1,351    $   2,663
Stockholders' equity:
Common stock and additional paid in capital   209,267      207,496
Accumulated deficit                           (129,318)    (112,110)
Accumulated other comprehensive (loss) income (9)          7
Total stockholders' equity                    79,940       95,393
Total liabilities and stockholders' equity    $   81,291   $   98,056





SOURCE Transcept Pharmaceuticals, Inc.

Website: http://www.transcept.com
 
Press spacebar to pause and continue. Press esc to stop.