Transcept Pharmaceuticals Announces Plans to Reduce Expenses Through a Reduction in Force and a Restructuring of its Board of

    Transcept Pharmaceuticals Announces Plans to Reduce Expenses Through a
       Reduction in Force and a Restructuring of its Board of Directors

PR Newswire

POINT RICHMOND, Calif., Nov. 13, 2013

POINTRICHMOND, Calif., Nov.13, 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 plans to reduce expenses by implementing a reduction in force and
restructuring its Board of Directors. Transcept plans to adopt these changes
in order to conserve cash while it works with Leerink Swann to evaluate
strategies to maximize value for shareholders.

Transcept plans to eliminate 6 employee positions, or approximately 43% of its
workforce. The majority of these positions will be eliminated by year-end,
with certain employees retained through a transition into early 2014. Once
fully implemented, this organizational change will reduce current annualized
payroll and benefit expenses by approximately $865,000. Severance and benefit
continuation charges in accordance with existing agreements are estimated to
be approximately$532,000 and are expected to be recognized primarily during
the fourth quarter of 2013 and first half of 2014. Transcept also expects to
recognize a stock compensation charge associated with the modification of
certain stock options in connection with the reduction in force that will be
determined and recognized primarily in the fourth quarter of 2013. After full
implementation of the reduction in force, Transcept will have 8 remaining
employees.

Effective at the end of December 2013, Transcept will also restructure its
Board of Directors. Glenn A. Oclassen, the Company's President and Chief
Executive Officer, will assume the role of Chairman of the Board and Chief
Executive Officer. Concurrently, G. Kirk Raab, the Company's current Chairman
of the Board, will move to the position of Lead Director. Christopher B.
Ehrlich, a longstanding member of the Transcept Board of Directors, will
resign from the Board effective at the end of December 2013. This
restructuring will save the Company approximately $180,000 on an annualized
basis, or 36% of its board governance costs.

Transcept has agreed to increase the change-in-control severance benefit for
Leone Patterson, the Transcept Chief Financial Officer, from 1.25 times her
base salary to 1.5 times her base salary. To offset this potential increase
in expense, the change-in-control severance arrangement for Glenn A. Oclassen
has been reduced from 2 times his base salary to 1 times his base salary.

Glenn A. Oclassen, President and Chief Executive Officer, stated, "These cost
containment steps are consistent with our long standing principle of
conservative cash management and, once fully implemented, will save Transcept
a total of approximately $1.0 million on an annualized basis."

Mr. Oclassen continued, "This decision was a difficult one for all of us,
especially given the high quality of the people affected. We are extremely
grateful to all of our employees for their significant efforts and
contributions to Transcept, and to Mr. Ehrlich, for his valuable service to
our Board of Directors."

About Transcept

Transcept Pharmaceuticals, Inc.is a specialty pharmaceutical company focused
on the development and commercialization of proprietary products to address
important therapeutic needs in the field of neuroscience. The company's lead
development candidate is TO-2070, a novel, rapidly absorbed treatment for
acute migraine incorporating dihydroergotamine (DHE) as the active drug.
Preclinical data suggest that TO-2070 may offer significant migraine treatment
benefits beyond those provided by less convenient and more invasive DHE drug
delivery methods, such as injection, liquid nasal sprays or pulmonary
inhalation.

In addition to advancing TO-2070, Transcept continues to evaluate
opportunities to supplement its development pipeline with new programs
appropriate to its area of expertise. The Transcept management team developed
Intermezzo®from concept to its approval by theFDAin 2011.Purdueholds
commercialization and development rights for Intermezzo in the United
States.For further information about Transcept, please
visitwww.transcept.com. For information about Intermezzo, please
visitwww.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 revenue, 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: the timing, nature and effect of our
plans to reduce expenses, including a reduction in force and restructuring of
our Board of Directors; our expectation regarding our conservation of cash;
our pursuit of strategic initiatives to increase stockholder value;
expectations that TO-2070 may offer significant migraine treatment benefits
beyond existing treatments; and future opportunities to supplement the
Transcept development pipeline. 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 withPurdue; 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; our ability to develop TO-2070; obtaining, maintaining
and protecting regulatory exclusivity and intellectual property protection for
Intermezzo and TO-2070; 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

SOURCE Transcept Pharmaceuticals, Inc.

Website: http://www.transcept.com
 
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