Ocera Reports Third Quarter Business Update and Financial Results

Ocera Reports Third Quarter Business Update and Financial Results

PALO ALTO, Calif., Nov. 13, 2013 (GLOBE NEWSWIRE) -- Ocera Therapeutics, Inc.
(Nasdaq:OCRX), a biopharmaceutical company focused on innovative therapeutics
for orphan liver disease, announced today financial results for the three and
nine months endedSeptember 30, 2013.

Ocera Business Updates

Since the start of the third quarter, Ocera's business updates include:

  *completion of the merger between Ocera Therapeutics, Inc., the
    privately-held company and Tranzyme, Inc. on July 15, 2013, following
    which the combined company was renamed Ocera Therapeutics, Inc.
  *completion of two private placement (PIPE) financings - the first closed
    on July 15, 2013 in conjunction with the merger and raised $20 million in
    gross proceeds and the second closed on November 8, 2013 and raised an
    additional $28 million in gross proceeds
  *key addition to the executive team with the hiring of Jeryl L. Hilleman as
    chief financial officer
  *finalization of OCR-002 Phase 2b protocol for acute hepatic encephalopathy
    in 200 patients, and initiation of clinical trial activities preparing for
    first patient enrollment
  *approval and initiation of a restructuring plan for our Canadian
    operations to enable the company to focus its resources on the clinical
    development of OCR-002.

"This is an exciting time for Ocera as we complete our post-merger integration
and prepare for the start of our Phase 2b study on OCR-002," saidLinda Grais,
M.D., J.D., chief executive officer ofOcera. "We believe, based on clinical
findings to-date, that OCR-002 has the potential to offer a selective and
active treatment for acute hepatic encephalopathy, an area of unmet medical

Ocera Three and Nine Months Financial Results

As ofSeptember 30, 2013, Ocera had cash and cash equivalents of$21.7

Net loss for the third quarter of 2013 was$7.4 million, compared to a net
loss of$0.8 millionfor the same period in 2012. Net loss for the nine months
endedSeptember 30, 2013was$10.2 million, compared to a net loss of$2.9
millionfor the same period in 2012.

Revenues for the three and nine months ended September 30, 2013 were$0.2
million and $0.2 million respectively, compared tono revenuefor the same
periods in 2012. The increase in revenues was primarily due to payments
received upon transfer of material to third parties and royalty revenue from a
licensing agreement.

Research and development expenses for the third quarter of 2013 were$1.9
million, compared to$0.4 millionfor the same period in 2012. Research and
development expenses for the nine months endedSeptember 30, 2013were$2.3
million, compared to$1.3 millionfor the same period in 2012. The increase in
expenses for the three and nine month periods was primarily due to preparatory
work for the OCR-002 Phase 2b trial and expenses incurred in operating the
Canadian facility acquired in the merger with Tranzyme, Inc.

General and administrative expenses were$3.2 millionfor the third quarter of
2013, compared to$0.4 millionfor the same period in 2012. General and
administrative expenses were$5.4 millionfor the nine months endedSeptember
30, 2013, compared to$1.4 millionfor the same period in 2012. The increase
in general and administrative expense was primarily due to expenses incurred
for the merger transaction, including employee severance, legal and accounting
fees and other expenses associated with corporate governance including
directors and officers insurance and fees.

In addition, during the third quarter of 2013, the company:

  *capitalized approximately $5.9 million of intangible assets acquired in
    the merger.The company recognized $265,000 for the amortization of the
    intangible assets for the three and nine months ended September 30, 2013.
  *expensed $1.6 million as a result of the impairment of an intangible asset
    pursuant to a collaboration agreement.
  *incurred restructuring expenses totaling $742,000.


Ocera Therapeutics, Inc. is a clinical stage biopharmaceutical company focused
on the development and commercialization of OCR-002 (ornithine phenylacetate).
OCR-002 is an ammonia scavenger which has been granted Orphan Disease and Fast
Track status from the FDA to treat hyperammonemia and associated hepatic
encephalopathy in patients with liver cirrhosis, acute liver failure and acute
liver injury. For additional information, please seewww.ocerainc.com.

Forward-Looking Statements

This press release contains "forward-looking" statements, including, without
limitation, all statements related to the OCR-002 clinical development
program, including timing of commencement of patient enrollment and the
potential success of OCR-002 in clinical trials. Any statements contained in
this press release that are not statements of historical fact may be deemed to
be forward-looking statements. Words such as "believe," "expected," "hope,"
"plan," "potential," "will" and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are based upon
Ocera's current expectations. Forward-looking statements involve risks and
uncertainties and Ocera's actual results and the timing of events could differ
materially from those anticipated in such forward-looking statements as a
result of these risks and uncertainties, including those risks and
uncertainties discussed under the heading "Risk Factors" inOcera's Quarterly
Report on Form10-Q for the quarter ended June30, 2013 filed onAugust14,
2013, as well as other risks detailed in Ocera's subsequent filings with the
Securities and Exchange Commission.All information in this press release is
as of the date of the release, and Ocera undertakes no duty to update this
information unless required by law.

                           Financial Tables Follow

Ocera Therapeutics,Inc.
Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share amounts)
                                        Three Months Ended Nine Months Ended
                                         September 30,      September 30,
                                        2013       2012    2013      2012
Licensing and other revenue              $200       $ —     $200      $ —
Total revenue                            200        —       200       —
Operating expenses:                                                
Research and development                 1,854      426     2,288     1,346
General and administrative               3,158      352     5,381     1,395
Amortization of intangibles              265        —       265       —
Restructuring charges                    742        —       742       —
Impairment of intangibles                1,576      —       1,576     —
Total operating expenses                 7,595      778     10,252    2,741
Operating loss                           (7,395)    (778)   (10,052)  (2,741)
Interest and other income                1          —       1         1
Interest and other expense               (13)       (44)    (186)     (87)
Change in fair value of warrant          3          2       15        (55)
Net loss                                 $(7,404)   $(820)  $(10,222) $(2,882)
Net loss per share-basic and diluted     $(0.77)    $(1.31) $(2.78)   $(4.60)
Shares used to compute net loss per      9,669,320  626,953 3,683,156 626,953
share-basic and diluted
Other comprehensive (loss):                                        
Net loss                                 $(7,404)   $(820)  $(10,222) $(2,882)
Foreign currency translation adjustment  2          —       2         —
Comprehensive loss                       $(7,402)   $(820)  $(10,220) $(2,882)

Ocera Therapeutics, Inc.
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
                                                   September 30, December 31,
                                                   2013          2012
Current assets:                                                  
Cash and cash equivalents                           $21,691       $2,303
Accounts receivable, net                            66            —
Investment tax credit receivable, current           310           —
Prepaid expenses and other assets                   519           100
Total current assets                                22,586        2,403
Intangible assets, net                              4,099         —
Goodwill                                            917           —
Investment tax credit receivable, net of current    275           —
Property and equipment, net                         707           7
Total assets                                        $28,584       $2,410
Liabilities and stockholders' equity / (deficit)                 
Current liabilities:                                             
Accounts payable                                    $845          $269
Accrued liabilities                                 2,096         280
Convertible note payable, net-related parties       —             2,908
Total current liabilities                           2,941         3,457
Preferred stock warrant liability                   —             16
Other long-term liabilities                         5             —
Total liabilities                                   2,946         3,473
Convertible preferred stock                         —             61,743
Total stockholders' equity / (deficit)              25,638        (62,806)
Total liabilities and stockholders' equity /        $28,584       $2,410

CONTACT: Investor and Media Contact:
         Jeri Hilleman
         Chief Financial Officer
         Ocera Therapeutics, Inc.

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