Pain Therapeutics Announces Fourth Quarter and Year-End 2006 Financial Results
SOUTH SAN FRANCISCO, Calif., Feb. 5 -- Pain Therapeutics, Inc. (Nasdaq: PTIE), a biopharmaceutical company, today reported financial results for the year and fourth quarter ended December 31, 2006.
The net income for the year ended December 31, 2006 was $6.2 million, or $0.14 per share, compared to a net loss of $30.7 million, or $0.70 per share, for the same period of 2005. The net loss for the quarter ended December 31, 2006 was $5.7 million, or $0.13 per share, compared to a net loss of $3.1 million, or $0.07 per share for the fourth quarter of 2005.
"2006 was a year marked by meaningful progress," said Remi Barbier, Pain Therapeutics' president and chief executive officer. "We achieved several key drug development goals, advanced a new drug candidate into clinical development and in-licensed a new initiative in oncology. On the corporate side, we made important hires that added new technical talent to the team, and we continued to build on our financial strength, ending the year with over $204 million in cash."
At December 31, 2006 Pain Therapeutics' cash, cash equivalents and marketable securities were $204.4 million. The Company expects its net cash requirements for 2007 to be approximately $10 million.
"In 2007, our strategy is to enhance our leadership position in drug development," added Remi Barbier. "We are positioned to make progress on multiple fronts in the coming year, most visibly in the clinic. We anticipate completing a pivotal Phase III study with Remoxy(TM), which we believe may be the first abuse-resistant opioid painkiller to eventually reach the marketplace. We also anticipate the continued clinical development of Oxytrex(TM), which is in a Phase III study in patients who are dependent on extremely high doses of oxycodone. In the first half of 2007, we also expect to begin a first-in-man Phase I study with an important new drug candidate for metastatic melanoma. As we advance our clinical pipeline during the year, we also expect to build our early-stage pipeline through a combination of in- house research efforts or in-licensing opportunities that fit our business model. Collectively, we believe these efforts in 2007 harness the skills and creativity of our dedicated team."
* We have a collaboration with King Pharmaceuticals, Inc. ("King") to develop abuse-resistant opioid painkillers. King gave us an upfront payment of $150 million in December 2005.
* For accounting purposes, we plan to recognize a portion of the upfront payment as program fee revenue each quarter through mid- 2011. Program fee revenue for the year ended December 31, 2006 was $26.2 million, compared to $3.7 million for the same period of 2005.
* On January 1, 2006 we adopted Statement No. 123( R ), Share-Based Payment, or FAS 123R. In adopting FAS 123R, we began to recognize employee non-cash stock-based compensation related expenses in our financial statements.
* Collaboration revenue for the year ended December 31, 2006 was $22.7 million, compared to $1.4 million for the same period of 2005. Collaboration revenue for the fourth quarter of 2006 decreased to a negative amount of $214,000 because certain expenses we incurred in the third and fourth quarter of 2006 continue to be subject to completion of review by King.
* Research and development expenses for the fourth quarter ended December 31, 2006 increased to $13.3 million from $7.2 million for the same period of 2005. Research and development expenses for the year ended December 31, 2006 increased to $46.8 million from $32.9 million for the same period of 2005. These increases were primarily due to the Phase III programs for Remoxy and Oxytrex, the Phase I clinical program for PTI-202, increases in development activities relating to our new program in metastatic melanoma and increases in non-cash stock-related compensation costs associated with the adoption of FAS 123R.
* General and administrative expenses increased to $2.0 million from $1.6 million in the three months ended December 31, 2006 and 2005, respectively, and to $7.7 million from $4.9 million in the twelve months ended December 31, 2006 and 2005, respectively. The increases were primarily due to increases in non-cash stock-related compensation costs associated with the adoption of FAS 123R.
* We have a provision for income taxes of $2.9 million for the year ended December 31, 2006. We lowered our estimate of income taxes stemming from alternative minimum taxes by $0.7 million during the quarter ended December 31, 2006.
About Pain Therapeutics, Inc.
Pain Therapeutics is a biopharmaceutical company that develops novel drugs for pain management and oncology. We have three investigational drug candidates in clinical programs. Remoxy and PTI-202 are proprietary, abuse- resistant forms of opioid drugs. Oxytrex is a novel, next-generation painkiller that potentially offers less physical dependence than currently marketed opioid painkillers. We are also developing a novel radio-labeled monoclonal antibody to treat metastatic melanoma, a rare but deadly form of skin cancer. The FDA has not yet evaluated the merits, safety or efficacy of our drug candidates. For more information, please consult our website: 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"). PTI 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 timing, scope or expected outcome of the Company's clinical development of its drug candidates, its plans for advancing its early-stage pipeline, the Company's expected net cash requirements in 2007, and the potential benefits of the Company's drug candidates. 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 development, testing, regulatory approval, production and marketing of the Company's drug candidates, unexpected adverse side effects or inadequate therapeutic efficacy of the Company's drug candidates that could slow or prevent product approval or market acceptance (including the risk that current and past results of clinical trials are not necessarily indicative of future results of clinical trials), the uncertainty of patent protection for the Company's intellectual property or trade secrets, the Company's ability to obtain additional financing if necessary and unanticipated research and development and other costs. 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.
PAIN THERAPEUTICS, INC. CONDENSED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited) Three Months Ended Year Ended December 31, December 31, 2006 2005 2006 2005 Revenue: Program fee revenue $6,550 $3,712 $26,201 $3,712 Collaboration revenue (214) 1,368 22,717 1,368 Milestone revenue - 5,000 - Total revenue 6,336 5,080 53,918 5,080 Operating expenses (1): Research and development 13,290 7,154 46,803 32,938 General and administrative 1,963 1,577 7,668 4,859 Total operating expenses 15,253 8,731 54,471 37,797 Operating loss (8,917) (3,651) (553) (32,717) Interest and other income 2,552 519 9,668 2,047 Income (loss) before provision (credit) for income tax (6,365) (3,132) 9,115 (30,670) Provision (credit) for income tax (653) - 2,927 - Net income (loss) $(5,712) $(3,132) $6,188 $(30,670) Earnings (loss) per share Basic $(0.13) $(0.07) $0.14 $(0.70) Diluted $(0.13) $(0.07) $0.14 $(0.70) Weighted-average shares used in computing earnings (loss) per share: Basic 44,262 43,916 44,146 43,795 Diluted 44,262 43,916 45,475 43,795 (1)Included in research and development and general and administrative expenses are stock based compensation expenses of $1,680 thousand and $90 thousand for the three months ended December 31, 2006 and 2005, respectively, and $6,470 thousand and $248 thousand for the years ended December 31, 2006 and 2005, respectively. PAIN THERAPEUTICS, INC. CONDENSED BALANCE SHEETS (in thousands) December 31, December 31, 2006 2005(2) (Unaudited) Assets Current assets: Cash, cash equivalents and marketable securities $204,400 $212,652 Other current assets 2,714 1,512 Total current assets 207,114 214,164 Property and equipment, net 1,267 1,556 Other assets 75 75 Total assets $208,456 $215,795 Liabilities and stockholders' equity Current liabilities: Accounts payable $985 $998 Accrued development expense 5,777 4,461 Deferred program fee revenue - current portion 26,200 26,200 Income taxes payable 2,779 - Other accrued liabilities 913 688 Total current liabilities 36,654 32,347 Non-current liabilities: Deferred program fee revenue - non-current portion 93,887 120,088 Total liabilities 130,541 152,435 Stockholders' equity: Common stock 44 44 Additional paid-in-capital 214,749 206,489 Accumulated other comprehensive loss (372) (479) Accumulated deficit (136,506) (142,694) Total stockholders' equity 77,915 63,360 Total liabilities and stockholders' equity $208,456 $215,795 (2) Derived from audited financial statements.
SOURCE Pain Therapeutics, Inc.
CONTACT: Christi Waarich, Senior Manager of Investor Relations of Pain
Therapeutics, Inc., +1-650-825-3324, or firstname.lastname@example.org; or Carney
Noensie (Media) of Burns McClellan, +1-212-213-0006, for Pain Therapeutics, Inc.
Web site: http://www.paintrials.com