Transcept Pharmaceuticals Provides Update to Key Initiatives Being Undertaken to Increase Stockholder Value

Transcept Pharmaceuticals Provides Update to Key Initiatives Being Undertaken
                        to Increase Stockholder Value

PR Newswire

POINT RICHMOND, Calif., Dec. 4, 2013

POINTRICHMOND, Calif., Dec.4, 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
provided an update to the key initiatives being pursued to increase
stockholder value.

The Transcept Board and management team have taken, or are undertaking, the
following steps:

  oIn November 2013 we announced the reduction of 6 employees, or
    approximately 43% of our workforce. In connection with this
    restructuring, Thomas P. Soloway, Executive Vice President and Chief
    Operating Officer, notified the Company that he would resign effective
    December 31, 2013. With these combined changes, we expect that our
    headcount will be reduced by approximately 50% and our annual payroll and
    benefits expense will be reduced by approximately $1.23 million, or 37% of
    the annual Transcept payroll.
  oEffective December 31, 2013, Glenn A. Oclassen, 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 Independent
    Director.Christopher B. Ehrlich, a longstanding member of the Transcept
    Board of Directors, will resign from the Board effective December 31,
    2013. This restructuring is expected save the Company
    approximately$180,000on an annualized basis, or 36% of its board
    governance costs.
  oWe are continuing our work with Leerink Swann, LLC, our previously
    announced financial and strategic advisor, to explore a range of
    alternatives to enhance stockholder value, including a sale of the
    Company, a business combination, partnership opportunities and
    distribution of all or a significant amount of cash to stockholders. In
    particular, we are actively seeking a merger partner and intend to
    continue this effort into the first quarter of 2014, while continuing to
    remain open to all stockholder value enhancing opportunities. We are
    evaluating a range of alternatives, some of which may result in a
    transaction with a partial distribution of cash to stockholders concurrent
    with the transaction. If we cannot identify a transaction in the first
    quarter 2014, we intend to proceed with a liquidation of the Company.
  oWe will continue to develop TO-2070, our DHE product candidate for the
    treatment of acute migraine, through the completion of preclinical safety
    studies. We believe that the continued development of TO-2070 through a
    successful completion of pre-clinical safety studies will add value to the
    asset that may be recognized in a potential transaction. Given the timing
    of the strategic process described above, we do not intend to initiate a
    Phase 1 human pharmacokinetic study.
  oWe continue to work with Purdue Pharma, our U.S. marketing partner for
    Intermezzo, to develop and implement strategies to maximize the value of
    Intermezzo.

Glenn A. Oclassen, President and Chief Executive Officer, stated, "These key
initiatives are intended to have both a near term effect by reducing our
overall cash burn, as well as a long-term positive effect on stockholder
value."

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, including
the nature, timing and effect of such strategic initiatives; future plans with
respect to TO-2070 and Intermezzo; and our expectations as to the value a
potential merger partner may place on TO-2070. 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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