Pain Therapeutics Announces Second Quarter 2007 Financial Results
SOUTH SAN FRANCISCO, Calif., Aug 9, 2007 (PrimeNewswire via COMTEX News Network) -- Pain Therapeutics, Inc. (Nasdaq:PTIE) today reported financial results for the three and six months ended June 30, 2007. Net income for the quarter ended June 30, 2007 was $3.4 million, or $0.07 per diluted share, compared to $1.4 million, or $0.03 per share, in the second quarter of 2006. Net income for the six months ended June 30, 2007 was $16.0 million, or $0.35 per diluted share, compared to $2.2 million, or $0.05 per share, for the same period in 2006.
Cash, cash equivalents and marketable securities were $206.3 million at June 30, 2007. Pain Therapeutics continues to expect its 2007 net cash requirements to be approximately $10.0 million, plus any amounts related to a previously announced stock buyback plan of up to $20.0 million of its common stock. As of June 30, 2007 we had purchased $3.8 million of our common stock on the open market.
Financial Highlights
-- We have a collaboration with King Pharmaceuticals, Inc. ("King") to develop Remoxy(tm) and other abuse-deterrent opioid painkillers. Collaboration revenues were $7.5 million and $23.0 million in the three and six months ended June 30, 2007, respectively and $7.2 million and $16.0 million in the three and six months ended June 30, 2006, respectively. Collaboration revenue in the six months ended June 30, 2007 includes reimbursement from King of certain of our development expenses during that period as well as $5.9 million of expenses we incurred in 2006 related to the collaboration that were not recognized in 2006. King completed its review and reimbursed us for $5.7 million of these expenses during the three months ended March 31, 2007 and for $0.2 million of these expenses during the three months ended June 30, 2007.
-- On March 29, 2007, we announced a stock buyback plan of up to $20.0 million of our common stock. As of June 30, 2007 we had purchased $3.8 million of our common stock on the open market. The total number of shares to be purchased and the timing of purchases will be based on several factors, including the price of the common stock, general market conditions, corporate and regulatory requirements and alternate investment opportunities. We intend to hold repurchased shares in treasury. This stock buyback program expires March 2008 and may be modified or discontinued at any time.
-- King gave us an upfront cash payment of $150.0 million in December 2005. For accounting purposes, we plan to recognize a portion of this cash payment as "program fee revenue" each quarter through July 2011. We recognized program fee revenue of $6.6 million this quarter.
-- Research and development expenses for the second quarter of 2007 increased to $11.0 million from $10.2 million for the second quarter of 2006. Research and development expenses for the six months ended June 30, 2007 decreased to $20.9 million from $23.0 million for the same period in 2006. These fluctuations were primarily due to the timing of development activities for our abuse-deterrent drug candidates. Research and development expenses included non-cash stock related compensation costs of $0.8 million in the three months ended June 30, 2007 and 2006 and $1.5 million and $1.8 million in the six months ended June 30, 2007 and 2006, respectively.
-- General and administrative expenses increased to $2.1 million from $2.0 million in the three months ended June 30, 2007 and 2006, respectively, and decreased to $3.9 million from $4.0 million in the six months ended June 30, 2007 and 2006, respectively. General and administrative expenses included non-cash stock related compensation costs of $0.6 million in the three months ended June 30, 2007 and 2006 and $1.1 million and $1.4 million in the six months ended June 30, 2007 and 2006, respectively.
-- We have not provided for income taxes for the second quarter of 2007 because we do not expect to have taxable income for the full year 2007. Our income before income taxes in 2007 includes program fee revenue. For tax purposes, we recognized all of the related program fee revenue in 2006, which is the primary reason for our expectations for no taxable income for 2007.
About Pain Therapeutics, Inc.
Pain Therapeutics is a biopharmaceutical company that develops novel drugs. We have four investigational drug candidates in clinical programs, including Remoxy, Oxytrex(tm), PTI-202 and a novel radio-labeled monoclonal antibody to treat metastatic melanoma. We are also working on a new treatment for patients with hemophilia. The FDA has not yet evaluated the merits, safety or efficacy of our drug candidates. 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 timing, scope or expected outcome of the Company's clinical development of its drug candidates, the potential benefits of the Company's drug candidates, and the Company's expected cash requirements in 2007. 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 and testing of the Company's drug candidates, unexpected adverse side effects or inadequate therapeutic efficacy of the Company's drug candidates (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 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 June 30, Six Months Ended June 30,
-------------------------- ------------------------
2007 2006 2007 2006
---- ---- ---- -----
Revenue
Program fee
revenue $ 6,550 $ 6,550 $ 13,100 $ 13,100
Collaboration
revenue 7,515 7,196 23,018 15,972
--------- --------- --------- ---------
Total revenue 14,065 13,746 36,118 29,072
Operating expenses
Research and
development 11,044 10,188 20,903 23,042
General and
administrative 2,102 2,049 3,940 4,019
--------- --------- --------- ---------
Total operating
expenses 13,146 12,237 24,843 27,061
--------- --------- --------- ---------
Operating income 919 1,509 11,275 2,011
Interest and other
income 2,446 2,468 4,726 4,556
--------- --------- --------- ---------
Income before
provision for
income taxes 3,365 3,977 16,001 6,567
Provision for
income taxes -- 2,610 -- 4,323
--------- --------- --------- ---------
Net income $ 3,365 $ 1,367 $ 16,001 $ 2,244
========= ========= ========= =========
Earnings per share
Basic $ 0.08 $ 0.03 $ 0.36 $ 0.05
========= ========= ========= =========
Diluted $ 0.07 $ 0.03 $ 0.35 $ 0.05
========= ========= ========= =========
Weighted-average
shares used in
computing
earnings per share
Basic 44,025 44,138 44,183 44,067
========= ========= ========= =========
Diluted 45,180 45,258 45,303 45,381
========= ========= ========= =========
PAIN THERAPEUTICS, INC.
CONDENSED BALANCE SHEETS
(in thousands)
June 30, December 31,
2007 2006 (1)
-------------- --------------
(Unaudited)
Assets
Current assets
Cash, cash equivalents and
marketable securities $ 206,327 $ 204,400
Other current assets 332 2,714
---------- ----------
Total current assets 206,659 207,114
Non-current assets
Property and equipment, net 1,206 1,267
Other assets 768 75
---------- ----------
Total assets $ 208,633 $ 208,456
========== ==========
Liabilities and stockholders' equity
Current liabilities
Accounts payable $ 2,220 $ 985
Accrued development expense 4,014 5,777
Deferred program fee revenue -
current portion 26,200 26,200
Income taxes payable -- 2,779
Other accrued liabilities 1,141 913
---------- ----------
Total current liabilities 33,575 36,654
Non-current liabilities
Deferred program fee revenue -
non-current portion 80,787 93,887
Other liabilities 760 --
---------- ----------
Total liabilities 115,122 130,541
---------- ----------
Stockholders' equity
Common stock 44 44
Additional paid-in-capital 216,077 214,749
Accumulated other comprehensive loss (177) (372)
Accumulated deficit (122,433) (136,506)
---------- ----------
Total stockholders' equity 93,511 77,915
---------- ----------
Total liabilities and stockholders'
equity $ 208,633 $ 208,456
========== ==========
(1) Derived from audited financial statements.
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SOURCE: Pain Therapeutics
Pain Therapeutics, Inc.
Christi Waarich, Senior Manager of Investor Relations
650-825-3324
cwaarich@paintrials.com
Burns McClellan
Media
Carney Noensie
212-213-0006