Welcome!

.NET Authors: Trevor Parsons, Peter Silva, Yeshim Deniz, Pat Romanski, Adine Deford

News Feed Item

Transcept Pharmaceuticals Reports Third Quarter 2012 Financial Results

Conference call scheduled for 4:30 PM Eastern time today

POINT RICHMOND, Calif., Nov. 12, 2012 /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 financial results for the three and nine months ended September 30, 2012.

Intermezzo® (zolpidem tartrate) sublingual tablet C-IV is the first FDA approved Transcept product and is being marketed in the United States by Purdue Pharmaceutical Products L.P. (Purdue) under the terms of a collaboration agreement between Transcept and Purdue.

Transcept reported cash, cash equivalents and marketable securities of $98.7 million at September 30, 2012, which included the receipt of a $10.0 million milestone payment from Purdue.

"As the Intermezzo launch advances, Purdue continues to refine their understanding of the insomnia landscape and reshape the substantial Intermezzo promotional effort now underway," stated Glenn A. Oclassen, President and Chief Executive Officer of Transcept. "It is clear that further effort is needed to educate physicians and patients about middle of the night awakenings as an important manifestation of insomnia. We are working closely with Purdue to address this need and to support the future success of Intermezzo."

Three months ended September 30, 2012 financial results
Transcept recorded $10.4 million in revenue for the quarter ended September 30, 2012 compared to $0.6 million for the quarter ended September 30, 2011. Revenue during the quarter ended September 30, 2012 included a $10.0 million milestone payment from Purdue for the listing of a Transcept method of use patent in the FDA's Orange Book, $0.2 million of royalties based on Purdue net sales of Intermezzo to wholesalers, and $0.2 million from Purdue for a non-refundable option to negotiate for the commercialization of Intermezzo in Mexico and Canada. Revenue for the same period in 2011 consisted of $0.6 million of license fees for recognition of a portion of the $25.0 million up-front license fee received from Purdue in connection with the collaboration agreement for commercialization of Intermezzo in the United States. All revenue from this up-front license fee was recognized by year-end 2011.

Research and development expense for the quarter ended September 30, 2012 was $3.1 million, compared to $2.7 million for the same period in 2011. Research and development expense in both periods was primarily attributable to expense associated with our Phase 2 study for the TO-2061 development program. Research and development expense for the quarter ended September 30, 2011 included $0.5 million of severance and benefit continuation expense related to the reduction in force announced in July 2011. Research and development expense included non-cash stock compensation expense of $0.2 million for each of the quarters ended September 30, 2012 and 2011.

General and administrative expense for the quarter ended September 30, 2012 was $2.5 million, compared to $2.9 million for the same period in 2011. The decrease in general and administrative expense was primarily attributable to $0.5 million of severance and benefit continuation expense recorded in the quarter ended September 30, 2011 related to the reduction in force announced in July 2011. General and administrative expense included non-cash stock compensation expense of $0.5 million for each of the quarters ended September 30, 2012 and 2011.

Net income for the quarter ended September 30, 2012 was $4.9 million, or $0.26 per share (basic) and $0.25 per share (diluted), compared to a net loss of $5.0 million, or $0.37 per share (basic and diluted), for the same period in 2011. This increase in net income was primarily attributable to the $10.0 million method of use patent milestone payment related to the Purdue collaboration agreement. The weighted average shares used to calculate basic and diluted net income per share were 18,567,833 and 19,231,656, respectively, for the quarter ended September 30, 2012. The weighted average shares used to calculate basic and diluted net loss per share for the quarter ended September 30, 2011 were 13,521,965. At September 30, 2012, there were 18,578,159 common shares outstanding and 3,313,751 common shares underlying outstanding options and warrants.

Nine months ended September 30, 2012 financial results
Transcept recorded $10.9 million in revenue for the nine month period ended September 30, 2012 compared to $6.9 million for the nine month period ended September 30, 2011. Revenue during the nine month period ended September 30, 2012 included a $10.0 million milestone payment from Purdue for the listing of a Transcept method of use patent in the FDA's Orange Book, $0.7 million of royalties based on Purdue net sales of Intermezzo to wholesalers, and $0.2 million from Purdue for a non-refundable option to negotiate for the commercialization of Intermezzo in Mexico and Canada. Revenue for the same period in 2011 consisted of $6.9 million of license fees for recognition of a portion of the $25.0 million up-front license fee received from Purdue in connection with the collaboration agreement for commercialization of Intermezzo in the United States. All revenue from this up-front license fee was recognized by year-end 2011.

Research and development expense for the nine months ended September 30, 2012 was $8.3 million, compared to $7.9 million for the same period in 2011. Research and development expense in both periods was primarily attributable to expense associated with our Phase 2 study for the TO-2061 development program. Research and development expense for the nine months ended September 30, 2011 included severance and benefit continuation expense of $0.5 million related to our July 2011 reduction-in-force. Research and development expense included non-cash stock compensation expense of $0.7 million for the nine months ended September 30, 2012 and $0.5 million for the nine months ended September 30, 2011.

General and administrative expense for the each of the nine months ended September 30, 2012 and 2011 was $8.0 million. General and administrative expense during the nine months ended September 30, 2011 included $0.5 million severance and benefit continuation expense related to our July 2011 reduction-in-force as well as non-cash stock compensation expense of $0.2 million for stock option modifications to two members of our Board of Directors. General and administrative expense during the nine months ended September 30, 2012 included increased expense for external professional fees, including third-party consulting, and market research. General and administrative expense included non-cash stock compensation expense of $1.5 million and $1.6 million for the nine months ended September 30, 2012 and 2011, respectively.

Net loss for the nine months ended September 30, 2012 was $5.5 million, or $0.33 per share (basic and diluted), compared to a net loss of $9.2 million, or $0.68 per share (basic and diluted), for the nine months ended September 30, 2011. The decrease in net loss was primarily attributable to the $10.0 million method of use patent milestone payment related to the Purdue collaboration agreement. The weighted average shares used to calculate basic and diluted net loss per share were 16,523,037 and 13,490,588 for the nine months ended September 30, 2012 and September 30, 2011, respectively.

FINANCIAL TABLES FOLLOW

Conference call and webcast information
Transcept will host a conference call and webcast on Monday, November 12, 2012, at 4:30 p.m. ET to discuss third quarter 2012 financial results. Telephone numbers for the live conference call are 877-638-4558 (U.S.) or 914-495-8537 (International). The webcast can be accessed on the Investors page of the Transcept website at www.transcept.com and will be available for replay until close of business on January 30, 2013.

About Transcept
Transcept Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on the development and commercialization of proprietary products that address important therapeutic needs in the field of neuroscience. Intermezzo® (zolpidem tartrate) sublingual tablet C-IV is the first FDA approved Transcept product. Purdue holds commercialization and development rights for Intermezzo in the United States. Transcept is currently conducting a Phase 2 study of an investigational product, TO-2061, in patients with obsessive-compulsive disorder. For further information about Transcept, please visit www.transcept.com. For information about Intermezzo, please visit www.IntermezzoRx.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 revenues, 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: Purdue refining their understanding of the insomnia landscape; Purdue reshaping the current Intermezzo promotional effort; the need to educate the medical community about middle-of-the-night sleep problems, and our collaboration with Purdue to educate physicians and payers accordingly; and the progression of the commercialization of Intermezzo, including our collaboration with Purdue to support any future success of Intermezzo. 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 payers; 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 dependence on our collaboration with Purdue; and obtaining, maintaining and protecting regulatory exclusivity and intellectual property protection for Intermezzo; 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.
Greg Mann
Senior Director, Corporate Communications
(510) 215-3567
[email protected]

 

 

Transcept Pharmaceuticals, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except per share data)

(Unaudited)



Three Months Ended September 30, 


Nine Months Ended September 30, 


2012


2011


2012


2011

Revenue:









Royalty revenue

$    190


$          -


$     683


$          -


License fee revenue

-


625


-


6,875


Milestone revenue

10,000


-


10,000


-


Other revenue

250


-


250


-

Total revenue

10,440


625


10,933


6,875









Operating expense:









Research and development

3,057


2,668


8,273


7,922


General and administrative

2,483


2,919


7,998


8,045

Total operating expense

5,540


5,587


16,271


15,967

Income (loss) from operations

4,900


(4,962)


(5,338)


(9,092)

Interest and other income (expense), net

(45)


(29)


(124)


(84)

Net income (loss)

$ 4,855


$ (4,991)


$ (5,462)


$ (9,176)









Net income (loss) per share:








   Basic

$   0.26


$   (0.37)


$   (0.33)


$   (0.68)

   Diluted

$   0.25


$   (0.37)


$   (0.33)


$   (0.68)









Weighted average shares outstanding








   Basic

18,568


13,522


16,523


13,491

   Diluted

19,232


13,522


16,523


13,491









Comprehensive income (loss)

$ 4,862


$ (4,996)


$ (5,485)


$ (9,142)

 

 

 

Transcept Pharmaceuticals, Inc.

Condensed Consolidated Balance Sheets

(unaudited, in thousands)








September 30,


December 31,



2012


2011

Assets




Current assets:





Cash and cash equivalents

$          70,037


$         10,659


Marketable securities

28,634


51,703


Other current assets

2,548


3,475

Total current assets

101,219


65,837

Property and equipment, net

166


314

Goodwill

2,962


2,962

Other assets

-


38

Total assets

$        104,347


$         69,151






Liabilities and stockholders' equity 




Total current liabilities

$            3,369


$           3,339

Total non-current liabilities

-


60

Total liabilities

3,369


3,399

Stockholders' equity:





Common stock and additional paid-in capital

206,528


165,817


Accumulated deficit

(105,556)


(100,094)


Accumulated other comprehensive income 

6


29


Total stockholders' equity 

100,978


65,752

Total liabilities and stockholders' equity 

$        104,347


$         69,151

 

SOURCE Transcept Pharmaceuticals, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Focused on this fast-growing market’s needs, Vitesse Semiconductor Corporation (Nasdaq: VTSS), a leading provider of IC solutions to advance "Ethernet Everywhere" in Carrier, Enterprise and Internet of Things (IoT) networks, introduced its IStaX™ software (VSC6815SDK), a robust protocol stack to simplify deployment and management of Industrial-IoT network applications such as Industrial Ethernet switching, surveillance, video distribution, LCD signage, intelligent sensors, and metering equipment. Leveraging technologies proven in the Carrier and Enterprise markets, IStaX is designed to work ac...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
C-Labs LLC, a leading provider of remote and mobile access for the Internet of Things (IoT), announced the appointment of John Traynor to the position of chief operating officer. Previously a strategic advisor to the firm, Mr. Traynor will now oversee sales, marketing, finance, and operations. Mr. Traynor is based out of the C-Labs office in Redmond, Washington. He reports to Chris Muench, Chief Executive Officer. Mr. Traynor brings valuable business leadership and technology industry expertise to C-Labs. With over 30 years' experience in the high-tech sector, John Traynor has held numerous...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world. The next @ThingsExpo will take place November 4-6, 2014, at the Santa Clara Convention Center, in Santa Clara, California. Since its launch in 2008, Cloud Expo TV commercials have been aired and CNBC, Fox News Network, and Bloomberg TV. Please enjoy our 2014 commercial.