Pain Therapeutics Reports Q1 2012 Financial Results

AUSTIN, Texas, May 8, 2012 (GLOBE NEWSWIRE) -- Pain Therapeutics, Inc. (Nasdaq:PTIE) today reported financial results for the quarter ended March 31, 2012. Net profit for Q1 2012 was $30,000, or $0.00 per share in Q1 2012, as compared to a net loss of $207,000, or $0.00 per share in Q1 2011. 

Cash and investments were $95.9 million at March 31, 2012. Net cash usage for the first half of 2012 continues to be expected to be under $5.0 million. The Company has no debt. 

Q1 2012 Financial Detail

  • Collaboration revenue of $0.2 million in Q1 2012 reflects reimbursement of our development expenses under our strategic alliance with Pfizer.
     
  • Research and development expenses decreased to $1.6 million in Q1 2012 from $2.2 million in Q1 2011, primarily due to reduced headcount. Non-cash stock related compensation costs within research and development expenses decreased to $0.5 million in Q1 2012 from $0.7 million in Q1 2011.
     
  • General and administrative expenses were $1.5 million in both Q1 2012 and Q1 2011. Non-cash stock related compensation costs within general and administrative expenses decreased to $0.4 million in Q1 2012 from $0.6 million in Q1 2011.

About REMOXY

Our lead drug candidate is called REMOXY (oxycodone) Extended-Release Capsules CII. REMOXY is an investigational drug with a unique, controlled release formulation of oxycodone for patients with moderate-to-severe chronic pain. REMOXY is designed to discourage common methods of tampering associated with prescription analgesic misuse and abuse.

On June 24, 2011, we and partner Pfizer, Inc. (NYSE:PFE) announced that a Complete Response Letter was received from the U.S. Food and Drug Administration (FDA) on the resubmission to the new drug application (NDA) for REMOXY. Pfizer is working to evaluate the issues described in the Complete Response Letter and plans to have further discussions with the FDA around them. Pfizer has full control of the development and funding of REMOXY.

In 2005, we entered into a strategic alliance with King Pharmaceuticals, Inc. (King) to develop and commercialize REMOXY. We filed the initial NDA for REMOXY in June 2008 and received a Complete Response Letter in December 2008. King assumed full control of the development of REMOXY in March 2009, filed a resubmission to the REMOXY NDA in December 2010 and received a Complete Response Letter for such resubmission in June 2011. Pfizer obtained rights to REMOXY upon the close of its acquisition of King in February 2011. 

  • Pfizer is our exclusive, worldwide commercial partner for REMOXY and three other abuse-resistant prescription pain medications (except in Australia/New Zealand).
     
  • Upon the commercial launch of REMOXY, we will receive from Pfizer a royalty of 20% of net sales in the United States, except as to the first $1.0 billion in cumulative net sales, which royalty is set at 15%. Outside the United States, the royalty rate is 10%.
     
  • In addition, we will receive from Pfizer a supplemental royalty fee payment of 6.0% to 11.5% of net sales, depending on the range of total dollar sales in each year. This supplemental payment is equal to the full amount of our financial obligations to Durect Corporation (Nasdaq:DRRX), our exclusive supplier of certain excipients in REMOXY.
     
  • To date, we have received total cash payments of $185.0 million in program fees and milestone payments under the strategic alliance with Pfizer in connection with the development of REMOXY and three other abuse-resistant drug candidates.
     
  • Under the terms of our strategic alliance with Pfizer, we are eligible to receive up to an additional $120.0 million in clinical/regulatory milestone payments, including a $15.0 million payment upon FDA approval of REMOXY.
     
  • Our development expenses for REMOXY and three other abuse-resistant pain medications that are in various stages of development, including hydrocodone, hydromorphone and oxymorphone, are reimbursed by Pfizer.
     
  • Pain Therapeutics retains commercial rights to REMOXY and three other abuse-resistant drug candidates in Australia/New Zealand. We have not yet announced a market entry strategy for these territories.

In December 2011, we were served notice of two civil lawsuits filed in the District Court of the Western District of Texas Austin Division.  Both relate to the attempt to obtain FDA approval for REMOXY.  One complaint is a shareholder derivative suit and alleges breach of fiduciary duty.  The other complaint alleges various violations of the Securities Exchange Act.  We believe these lawsuits are without merit and intend to vigorously contest them.

About Pain Therapeutics, Inc.

Pain Therapeutics, Inc. is a biopharmaceutical company that develops novel drugs. The FDA has not approved any of our drug candidates for commercial sale. 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 our projected net cash usage for the first half of 2012, Pfizer's plans with respect to development of REMOXY, potential future milestone payments and royalties based on revenue from REMOXY, the potential development of other abuse resistant drug candidates, funding obligations of Pfizer, and the benefits of REMOXY. 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 obtaining regulatory approval of REMOXY and in development, testing and pursuit of regulatory approval of our other drug candidates, unexpected adverse side effects or inadequate therapeutic efficacy of our drug candidates, difficulties or delays in commercialization efforts with respect to our products, if any are approved for marketing, or failure of such products to gain market acceptance, the uncertainty of patent protection for our intellectual property or trade secrets, unanticipated additional research and development and other costs, potential diversion of resources from the pursuit of development and commercialization of drug candidates subject to our strategic alliance with Pfizer as a result of the acquisition of King by Pfizer, and the potential for abuse resistant pain medications or other competing products or therapies to be developed by competitors and potential competitors or others. 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 March 31,
  2012 2011
 Revenue     
 Program fee revenue   $ 2,724  $ 2,724
 Collaboration revenue   249  512
 Total revenue   2,973  3,236
 Operating expenses     
 Research and development   1,609  2,178
 General and administrative   1,512  1,537
 Total operating expenses   3,121  3,715
 Operating loss   (148)  (479)
 Interest income   178  272
 Net income (loss)   $ 30  $ (207)
     
 Net income (loss) per share, basic and diluted   $ 0.00  $ (0.00)
 Weighted-average shares used in computing net income (loss) per share     
 Basic   44,732  43,124
 Diluted   44,756  43,124
     
CONDENSED BALANCE SHEETS
(in thousands)
  March 31, 2012 December 31, 2011(1)
  (Unaudited)  
 Assets     
 Current assets     
 Cash, cash equivalents and marketable securities   $ 95,896  $ 98,131
 Other current assets   475  358
 Total current assets   96,371  98,489
 Non-current assets     
 Property and equipment, net and other assets   439  474
 Total assets   $ 96,810  $ 98,963
 Liabilities and stockholders' equity     
 Current liabilities     
 Accounts payable and accrued development expenses   $ 921  $ 1,378
 Deferred program fee revenue - current portion   10,897  10,897
 Other accrued liabilities   1,120  997
 Total current liabilities   12,938  13,272
 Non-current liabilities     
 Deferred program fee revenue - non-current portion   38,139  40,863
 Other liabilities   435  435
 Total liabilities   51,512  54,570
 Stockholders' equity     
 Common Stock and additional paid-in-capital   177,377  176,470
 Accumulated other comprehensive income   96  128
 Accumulated deficit   (132,175)  (132,205)
 Total stockholders' equity   45,298  44,393
 Total liabilities and stockholders' equity   $ 96,810  $ 98,963
     
(1) Derived from the Company's annual financial statements as of December 31, 2011, included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission.
CONTACT: Peter S. Roddy
         Vice President and Chief Financial Officer
         Pain Therapeutics, Inc.
         
 This e-mail address is being protected from spambots. You need JavaScript enabled to view it.
 
         (512) 501-2450

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