Click here to close now.

Welcome!

.NET Authors: Pat Romanski, Andreas Grabner, Trevor Parsons, Elizabeth White, Tad Anderson

News Feed Item

Transcept Pharmaceuticals Reports Fourth Quarter And Full Year 2012 Financial Results

Conference call scheduled for 4:30 PM Eastern time today

POINT RICHMOND, Calif., Feb. 27, 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 announced financial results for the three and twelve months ended December 31, 2012.

Transcept reported cash, cash equivalents and marketable securities of $85.3 million at December 31, 2012.

"We continue to work closely with Purdue Pharma as they execute the Intermezzo commercialization plan," stated Glenn A. Oclassen, President and CEO of Transcept.  "The Intermezzo selling effort is newly supported by an enlarged Purdue sales team of approximately 615 professionals. Their sales activities are complemented by the recent launch of a national television advertising campaign, and we believe that these broadened commercial and educational efforts have the potential to increase consumer awareness of Intermezzo and drive future prescription growth."

Three months ended December 31, 2012 financial results
In December 2012, Transcept contributed $10.0 million to Purdue's Intermezzo direct-to-consumer advertising campaign. In accordance with the appropriate accounting treatment, Transcept plans to recognize this contribution as an offset against revenue over an estimated seven month period beginning December 1, 2012 and ending on June 30, 2013, as the advertising costs are incurred.  This treatment resulted in a $1.4 million offset to revenue during the fourth quarter 2012.

For the quarter ended December 31, 2012, Transcept recorded $0.1 million of royalty revenue on Intermezzo net sales generated by Purdue and the above mentioned $1.4 million offset related to the direct-to-consumer advertising campaign, resulting in negative net revenue of $1.3 million. Net revenue for the quarter ended December 31, 2011 was $12.8 million. The decrease of $14.1 million between periods was primarily attributable to the fourth quarter 2011 $10.0 million patent-related milestone payment from Purdue for the listing of Transcept's first formulation patent in the FDA's Orange Book, $2.4 million of other 2011 revenue received from Purdue, including the reimbursement of certain manufacturing-related costs, and the $1.4 million revenue offset recorded during the fourth quarter 2012 related to the direct-to-consumer advertising campaign.

Research and development expense for the quarter ended December 31, 2012 was approximately $2.9 million, compared to approximately $3.4 million for the same period in 2011.  The decrease of approximately $0.5 million was primarily attributable to 2011 stock compensation expense related to the vesting of performance based stock options upon the FDA approval of Intermezzo, and was partially offset by an increase in 2012 of clinical trial expense related to Transcept's Phase 2 study of TO-2061. Research and development expense included non-cash stock compensation expense of approximately $0.2 million for the quarter ended December 31, 2012 and approximately $0.8 million for the quarter ended December 31, 2011.

General and administrative expense for the quarter ended December 31, 2012 was approximately $2.3 million, compared to approximately $4.1 million for the same period in 2011. The decrease of approximately $1.8 million was primarily attributable to 2011 stock compensation expense related to the vesting of performance based stock options upon the FDA approval of Intermezzo. General and administrative expense included non-cash stock compensation expense of approximately $0.5 million for the quarter ended December 31, 2012, compared to approximately $1.6 million for the quarter ended December 31, 2011. 

Net loss for the quarter ended December 31, 2012 was approximately $6.6 million, or $0.35 per share (basic and diluted), compared to net income of approximately $5.3 million, or $0.39 per share (basic) and $0.37 per share (diluted), for the quarter ended December 31, 2011. The weighted average shares used to calculate basic and diluted net loss per share were 18,628,004 for the quarter ended December 31, 2012. The weighted average shares used to calculate basic and diluted net income per share were 13,663,799 and 14,396,542, respectively, for the quarter ended December 31, 2011. At December 31, 2012, there were 18,676,396 common shares outstanding and 3,047,631 common shares underlying outstanding options and warrants.

During January and February 2013, Transcept issued an additional 1,025,500 options to purchase common shares.  As of February 27, 2013, there were 18,696,396 common shares outstanding and 4,052,339 common shares underlying outstanding options and warrants.

Full year 2012 financial results
In December 2012, Transcept contributed $10.0 million to Purdue's Intermezzo direct-to-consumer advertising campaign. In accordance with the appropriate accounting treatment, Transcept plans to recognize this contribution as an offset against revenue over an estimated seven month period beginning December 1, 2012 and ending on June 30, 2013, as the advertising costs are incurred.  This treatment resulted in a $1.4 million offset to revenue in 2012.

Net revenue for the year ended December 31, 2012 was $9.6 million compared to $19.7 million for the year ended December 31, 2011. The decrease of $10.1 million was primarily attributable to the recognition in 2011 of the remaining $7.3 million of license fee revenue related to a non-refundable license fee received from Purdue, the reimbursement of certain manufacturing-related costs from Purdue, and the $1.4 million revenue offset recorded in 2012 related to the direct-to-consumer advertising campaign.

Research and development expense for the year ended December 31, 2012 was approximately $11.2 million, compared to approximately $11.3 million for the same period in 2011. The decrease of $0.1 million was primarily attributable to a $2.1 million decrease in salary and other general expenses related to the July 2011 reduction in workforce, and a $0.7 million reduction in the Intermezzo development program expense.  These were partially offset by a $2.7 million increase in expense associated with the TO-2061 clinical development program, which completed in December 2012.  Research and development expense included non-cash stock compensation expense of approximately $0.8 million for the year ended December 31, 2012 and approximately $1.3 million for the year ended December 31, 2011.

General and administrative expense for the year ended December 31, 2012 was approximately $10.3 million, compared to approximately $12.2 million for the same period in 2011. The decrease of $1.9 million was primarily attributable to 2011 salary and related expenses that included stock compensation expense related to FDA approval of Intermezzo, and severance and benefit continuation expense incurred during the 2011 reduction in workforce. General and administrative expense included non-cash stock compensation expense of approximately $2.1 million for the year ended December 31, 2012, compared to approximately $3.1 million for the year ended December 31, 2011. 

Net loss for the year ended December 31, 2012 was approximately $12.0 million, or $0.70 per share (basic and diluted), compared to a net loss of approximately $3.9 million, or $0.29 per share (basic and diluted), for the year ended December 31, 2011. The weighted average shares used to calculate net loss per share were 17,052,157 and 13,534,248 for the years ended December 31, 2012 and 2011, respectively.

Other information
On December 21, 2012, Transcept announced that a Phase 2 clinical trial of TO-2061, an investigational product for adjunctive therapy in patients with obsessive compulsive disorder, did not meet its primary endpoint. Based on this result, Transcept has discontinued the clinical development of TO-2061 and expects to incur final wind down costs for the program in the first half of 2013.

Conference call and webcast information
Transcept will host a conference call and webcast on Wednesday, February 27, 2013 at 4:30 p.m. ET to discuss fourth quarter and full year 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 March 31, 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.  For further information about Transcept, please visit www.transcept.com.  For information about Intermezzo, please visit www.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 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's plans to commercialize Intermezzo, including our collaboration with Purdue; the effect of Purdue's commercialization plans, including the broadened commercial and educational efforts through the national television advertising campaign, for Intermezzo on consumer awareness and prescription growth; and the period over which we expect to offset against revenue the $10 million contribution related to the direct-to-consumer advertising campaign led by Purdue. 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; 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; obtaining, maintaining and protecting regulatory exclusivity and intellectual property protection for Intermezzo; 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
[email protected]

FINANCIAL TABLES FOLLOW

Transcept Pharmaceuticals, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(Unaudited)



Three months ended December 31,


Year ended December 31,


2012


2011


2012


2011

Revenue:








 Gross royalty revenue

$                93


$                   -


$            776


$                  -

 Gross license fee revenue

-


417


-


7,292

 Gross milestone revenue

-


10,000


10,000


10,000

 Gross other revenue

-


2,402


250


2,402

 Advertising expense - Purdue Pharma

(1,429)


-


(1,429)


-

Net revenue

(1,336)


12,819


9,597


19,694

Operating expenses:








  Research and development

2,918


3,351


11,191


11,273

  General and administrative

2,265


4,140


10,263


12,185

Total operating expenses

5,183


7,491


21,454


23,458

(Loss) income from operations

(6,519)


5,328


(11,857)


(3,764)

Interest and other income (expense), net

(35)


(32)


(159)


(116)

Net (loss) income

$        (6,554)


$           5,296


$      (12,016)


$        (3,880)

Net (loss) income per share:








  Basic

$           (0.35)


$             0.39


$          (0.70)


$           (0.29)

  Diluted

$           (0.35)


$             0.37


$          (0.70)


$           (0.29)

Weighted average common shares outstanding:








  Basic

18,628


13,664


17,052


13,534

  Diluted

18,628


14,397


17,052


13,534

Comprehensive (loss) income 

$        (6,552)


$           5,289


$      (12,038)


$        (3,853)



 

Transcept Pharmaceuticals, Inc.

Condensed Consolidated Balance Sheets

(in thousands)



December 31, 2012


December 31, 2011


(unaudited)



Assets




Current assets:




     Cash and cash equivalents

$                          39,368


$                      10,659

     Marketable securities

45,907


51,703

     Prepaid advertising

8,571


-

     Other current assets

1,120


3,475

Total current assets

94,966


65,837

Property and equipment, net

128


314

Goodwill

2,962


2,962

Other assets

-


38

Total assets

$                          98,056


$                      69,151





Liabilities and stockholders' equity




Total current liabilities

$                            2,663


$                         3,339

Other liabilities, long-term portion

-


60

Total liabilities

2,663


3,399

Stockholders' equity:




     Common stock and additional paid in capital

207,496


165,817

     Accumulated deficit

(112,110)


(100,094)

     Accumulated other comprehensive income

7


29

Total stockholders' equity

95,393


65,752

Total liabilities and stockholders' equity

$                          98,056


$                      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
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science from the University of California, Berkeley.
The cloud is now a fact of life but generating recurring revenues that are driven by solutions and services on a consumption model have been hard to implement, until now. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, will discuss how a top European telco has leveraged the innovative recurring revenue generating capability of the consumption cloud to enable a unique cloud monetization model to drive results.
As organizations shift toward IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection &E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 16th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships, will discuss how to cut costs, scale easily, and unleash insight with CommVault Simpana software, the only si...
Analytics is the foundation of smart data and now, with the ability to run Hadoop directly on smart storage systems like Cloudian HyperStore, enterprises will gain huge business advantages in terms of scalability, efficiency and cost savings as they move closer to realizing the potential of the Internet of Things. In his session at 16th Cloud Expo, Paul Turner, technology evangelist and CMO at Cloudian, Inc., will discuss the revolutionary notion that the storage world is transitioning from mere Big Data to smart data. He will argue that today’s hybrid cloud storage solutions, with commodity...
Every innovation or invention was originally a daydream. You like to imagine a “what-if” scenario. And with all the attention being paid to the so-called Internet of Things (IoT) you don’t have to stretch the imagination too much to see how this may impact commercial and homeowners insurance. We’re beyond the point of accepting this as a leap of faith. The groundwork is laid. Now it’s just a matter of time. We can thank the inventors of smart thermostats for developing a practical business application that everyone can relate to. Gone are the salad days of smart home apps, the early chalkb...
Cloud data governance was previously an avoided function when cloud deployments were relatively small. With the rapid adoption in public cloud – both rogue and sanctioned, it’s not uncommon to find regulated data dumped into public cloud and unprotected. This is why enterprises and cloud providers alike need to embrace a cloud data governance function and map policies, processes and technology controls accordingly. In her session at 15th Cloud Expo, Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems, will focus on how to set up a cloud data governance program and s...
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been involved at the beginning of four IT industries: EDA, Open Systems, Computer Security and now SOA.
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, representing a model of how to analyze rea...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, 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. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
CommVault has announced that top industry technology visionaries have joined its leadership team. The addition of leaders from companies such as Oracle, SAP, Microsoft, Cisco, PwC and EMC signals the continuation of CommVault Next, the company's business transformation for sales, go-to-market strategies, pricing and packaging and technology innovation. The company also announced that it had realigned its structure to create business units to more directly match how customers evaluate, deploy, operate, and purchase technology.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
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.
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...