Welcome!

Microsoft Cloud Authors: Yeshim Deniz, Janakiram MSV, Andreas Grabner, Stackify Blog, Liz McMillan

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
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, will examine the regulations and provide insight on how it affects technology, challenges the established rules and will usher in new levels of diligence...
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, discussed new ways of thinking and the approaches needed to address the emerging challenges of security i...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. 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 devic...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, discussed the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information.
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
"DX encompasses the continuing technology revolution, and is addressing society's most important issues throughout the entire $78 trillion 21st-century global economy," said Roger Strukhoff, Conference Chair. "DX World Expo has organized these issues along 10 tracks with more than 150 of the world's top speakers coming to Istanbul to help change the world."
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Karthik Lalithraj, a Principal Solutions Architect at Kinetica, discussed how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.