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Pain Therapeutics Reports Q3 2013 Financial Results

Pain Therapeutics Reports Q3 2013 Financial Results

AUSTIN, Texas, Oct. 31, 2013 (GLOBE NEWSWIRE) -- Pain Therapeutics, Inc.
(Nasdaq:PTIE) today reported financial results for the quarter and nine months
ended September 30, 2013. Net loss was $762,000, or $0.02 per share in Q3
2013, compared to a net loss of $1,550,000, or $0.03 per share in Q3 2012.
Cash and investments were $51.0 million at September 30, 2013.

"We still expect our net cash usage to be under $10 million in CY2013," said
Remi Barbier, Chairman, President & CEO. "Based on recent developments, we
also believe Pfizer has a robust plan to resubmit the REMOXY^® NDA. Key
elements of this plan include doing a bioequivalence study and an
abuse-potential study using REMOXY, all of which we believe may result in a
stream of technical milestones now through 2015."

Q3 2013 Financial Detail

  *Program fee revenue reflects the non-cash revenue we recognize from
    upfront program fees received in prior years.
    
  *Research and development expenses decreased to $1.4 million in Q3 2013
    from $2.4 million in Q3 2012 and to $3.8 million in the first nine months
    of 2013 from $5.5 million in the first nine months of 2012, primarily due
    to lower cash-based compensation and lower non-cash stock related
    compensation. Non-cash stock related research and development expenses
    decreased to $1.0 million in the first nine months of 2013 from $2.0
    million in the first nine months of 2012.
    
  *General and administrative expenses decreased to $1.3 million in Q3 2013
    from $2.0 million in Q3 2012, and to $3.7 million in the first nine months
    of 2013 from $5.0 million in the first nine months of 2012, primarily due
    to lower cash-based compensation and lower non-cash stock related
    compensation. Non-cash stock related general and administrative expenses
    decreased to $1.3 million in the first nine months of 2013 from $2.0
    million in the first nine months of 2012.

About REMOXY

Our lead drug candidate, REMOXY, is an extended-release oral formulation of
oxycodone for the management of moderate-to-severe pain when a continuous,
around-the-clock opioid analgesic is needed for an extended period of time. We
designed REMOXY to discourage common methods of tampering and misuse.

Pfizer, Inc. (NYSE:PFE) is our exclusive, worldwide commercial partner for
REMOXY^® (oxycodone) Extended-Release Capsules CII, except as to Australia and
New Zealand.

REMOXY Deal Economics

  *We are eligible to receive from Pfizer a $15.0 million payment upon FDA
    approval of REMOXY.
    
  *After commercial launch of REMOXY, we will receive from Pfizer a royalty
    of 20% of net sales in the United States, except as to the first $1.0
    billion in cumulative net sales, which royalty is set at 15%. Outside the
    United States, the royalty rate is 10%.
    
  *We will also receive from Pfizer a supplemental payment of 6.0% to 11.5%
    of net sales, depending on the range of total dollar sales in each year,
    covered by the strategic alliance. This supplemental payment is tied to
    the full amount of our financial obligations to Durect Corporation
    (Nasdaq:DRRX), our exclusive supplier of certain excipients in REMOXY.
    
  *In October 2013, Pfizer returned to us all rights with respect to
    abuse-resistant formulations of hydrocodone, hydromorphone and
    oxymorphone.These drug assets now vest exclusively in PTI without any
    royalty or other obligation to Pfizer.We are free to develop and
    commercialize these assets on our own or with a licensee of our choice,
    and may do so without notice or approval from Pfizer.Investigational New
    Drug (IND) applications for all three drug assets are in place with
    FDA.We have not yet made a decision to develop or to out-license these
    three drug assets.

About Pain Therapeutics, Inc.

Pain Therapeutics, Inc. is a biopharmaceutical company that develops novel
drugs.The FDA has not approved any of our drug candidates for commercial
sale. For more information, please visit www.paintrials.com.

Note Regarding Forward-Looking Statements: This press release contains
forward-looking statements for purposes of the Private Securities Litigation
Reform Act of 1995 (the "Act").Pain Therapeutics disclaims any intent or
obligation to update these forward-looking statements, and claims the
protection of the Safe Harbor for forward-looking statements contained in the
Act.Examples of such statements include, but are not limited to, any
statements relating to the company's projected cash usage for 2013; Pfizer's
development plan, including expected studies, and the timing of any complete
response submission for REMOXY; potential future milestone payments and
royalties under the strategic alliance with Pfizer based on milestones and on
revenue from REMOXY; the potential development of other abuse-resistant drug
candidates; and funding obligations of Pfizer under the strategic
alliance.Such statements are based on management's current expectations, but
actual results may differ materially due to various factors. Such statements
involve risks and uncertainties, including, but not limited to, those risks
and uncertainties relating to difficulties or delays in carrying out
additional studies relating to, and obtaining regulatory approval of REMOXY
and in development, testing and pursuit of regulatory approval of our other
drug candidates; unexpected adverse side effects or inadequate therapeutic
efficacy of our drug candidates; possible decisions by Pfizer to delay or not
continue, or to devote less resources to, the development of REMOXY;
difficulties or delays in commercialization efforts with respect to our
products, if any are approved for marketing, or failure of such products to
gain market acceptance; the uncertainty of patent protection for our
intellectual property or trade secrets; unanticipated additional research and
development, litigation and other costs; and the potential for abuse-resistant
pain medications or other competing products or therapies to be developed by
competitors and potential competitors or others.For further information
regarding these and other risks related to the Company's business, investors
should consult the Company's filings with the Securities and Exchange
Commission.

                         – Financial Tables Follow –

PAIN THERAPEUTICS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
                                                              
                         Three Months Ended     Nine Months Ended September
                          September 30,          30,
                         2013       2012        2013            2012
Revenue                                                     
Program fee revenue     $1,958   $2,725    $5,875        $8,173
Collaboration revenue   --        --         --             249
Total revenue           1,958     2,725      5,875          8,422
Operating expenses                                          
Research and             1,444     2,379      3,766          5,504
development
General and              1,290     2,001      3,647          4,975
administrative
Total operating          2,734     4,380      7,413          10,479
expenses
Operating loss          (776)     (1,655)    (1,538)        (2,057)
Interest income         14        105        67             405
Net loss                $(762)   $(1,550)  $(1,471)      $(1,652)
Net loss per share, basic $(0.02)  $(0.03)   $(0.03)       $(0.04)
and diluted
Weighted-average shares
used in computing net     45,037    44,601     44,990         44,703
loss per share, basic and
diluted
                                                             
CONDENSED BALANCE SHEETS
(in thousands)
                                              September 30,   December 31,
                                                 2013            2012^(1)
                                              (Unaudited)     
Assets                                                      
Current assets                                              
Cash, cash equivalents
and marketable                                 $51,027       $56,254
securities
Other current assets                         389            253
Total current assets                         51,416         56,507
Non-current assets                                          
Other assets                                 340            352
Total assets                                 $51,756       $56,859
Liabilities and                                              
stockholders' equity
Current liabilities                                         
Accounts payable and accrued                   $1,273        $1,290
development expenses
Deferred program fee
revenue - current                              7,832          7,832
portion
Other accrued                                 550            877
liabilities
Total current                                 9,655          9,999
liabilities
Non-current liabilities                                     
Deferred program fee revenue -                 27,412         33,287
non-current portion
Other liabilities                            437            437
Total liabilities                            37,504         43,723
Stockholders' equity                                        
Common Stock and
additional                                     151,373        148,783
paid-in-capital
Accumulated other                             1              4
comprehensive income
Accumulated deficit                          (137,122)      (135,651)
Total stockholders'                           14,252         13,136
equity
Total liabilities and                         $51,756       $56,859
stockholders' equity
                                                             
^(1) Derived from the Company's annual financial statements as of December 31,
2012, included in the Company's Annual Report on Form 10-K filed with the
Securities and Exchange Commission.

CONTACT: For More Information Contact:
        
         Peter S. Roddy
         Vice President and Chief Financial Officer
         Pain Therapeutics, Inc.
         proddy@paintrials.com
         (512) 501-2450
 
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