Welcome!

.NET Authors: Sandi Mappic, Ivan Antsipau, JP Morgenthal, Yeshim Deniz, Carmen Gonzalez

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
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at Internet of @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, will discuss how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money! Speaker Bio: Esmeralda Swartz, CMO of MetraTech, has spent 16 years as a marketing, product management, and busin...
Samsung VP Jacopo Lenzi, who headed the company's recent SmartThings acquisition under the auspices of Samsung's Open Innovaction Center (OIC), answered a few questions we had about the deal. This interview was in conjunction with our interview with SmartThings CEO Alex Hawkinson. IoT Journal: SmartThings was developed in an open, standards-agnostic platform, and will now be part of Samsung's Open Innovation Center. Can you elaborate on your commitment to keep the platform open? Jacopo Lenzi: Samsung recognizes that true, accelerated innovation cannot be driven from one source, but requires a...
SYS-CON Events announced today that Red Hat, the world's leading provider of open source solutions, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, a...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Robin Raymond, Chief Architect at Hookflash Inc., will walk through the shifting landscape of traditional telephone a...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic • Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it’s a mix of architectural style...
SYS-CON Events announced today that SOA Software, an API management leader, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. SOA Software is a leading provider of API Management and SOA Governance products that equip business to deliver APIs and SOA together to drive their company to meet its business strategy quickly and effectively. SOA Software’s technology helps businesses to accelerate their digital channels with APIs, drive partner adoption, monetize their assets, and achieve a...
From a software development perspective IoT is about programming "things," about connecting them with each other or integrating them with existing applications. In his session at @ThingsExpo, Yakov Fain, co-founder of Farata Systems and SuranceBay, will show you how small IoT-enabled devices from multiple manufacturers can be integrated into the workflow of an enterprise application. This is a practical demo of building a framework and components in HTML/Java/Mobile technologies to serve as a platform that can integrate new devices as they become available on the market.
SYS-CON Events announced today that Utimaco will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Utimaco is a leading manufacturer of hardware based security solutions that provide the root of trust to keep cryptographic keys safe, secure critical digital infrastructures and protect high value data assets. Only Utimaco delivers a general-purpose hardware security module (HSM) as a customizable platform to easily integrate into existing software solutions, embed business logic and build s...
Connected devices are changing the way we go about our everyday life, from wearables to driverless cars, to smart grids and entire industries revolutionizing business opportunities through smart objects, capable of two-way communication. But what happens when objects are given an IP-address, and we rely on that connection, sometimes with our lives? How do we secure those vast data infrastructures and safe-keep the privacy of sensitive information? This session will outline how each and every connected device can uphold a core root of trust via a unique cryptographic signature – a “bir...
Internet of @ThingsExpo Silicon Valley announced on Thursday its first 12 all-star speakers and sessions for its upcoming event, which will take place November 4-6, 2014, at the Santa Clara Convention Center in California. @ThingsExpo, the first and largest IoT event in the world, debuted at the Javits Center in New York City in June 10-12, 2014 with over 6,000 delegates attending the conference. Among the first 12 announced world class speakers, IBM will present two highly popular IoT sessions, which will take place November 4-6, 2014 at the Santa Clara Convention Center in Santa Clara, Calif...
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.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at Internet of @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, will discuss how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.

SUNNYVALE, Calif., Oct. 20, 2014 /PRNewswire/ -- Spansion Inc. (NYSE: CODE), a global leader in embedded systems, today added 96 new products to the Spansion® FM4 Family of flexible microcontrollers (MCUs). Based on the ARM® Cortex®-M4F core, the new MCUs boast a 200 MHz operating frequency and support a diverse set of on-chip peripherals for enhanced human machine interfaces (HMIs) and machine-to-machine (M2M) communications. The rich set of periphera...

SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue business and deliver exceptional experiences to their customers.
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
The Internet of Things (IoT) is making everything it touches smarter – smart devices, smart cars and smart cities. And lucky us, we’re just beginning to reap the benefits as we work toward a networked society. However, this technology-driven innovation is impacting more than just individuals. The IoT has an environmental impact as well, which brings us to the theme of this month’s #IoTuesday Twitter chat. The ability to remove inefficiencies through connected objects is driving change throughout every sector, including waste management. BigBelly Solar, located just outside of Boston, is trans...
SYS-CON Events announced today that Matrix.org has been named “Silver Sponsor” of Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Matrix is an ambitious new open standard for open, distributed, real-time communication over IP. It defines a new approach for interoperable Instant Messaging and VoIP based on pragmatic HTTP APIs and WebRTC, and provides open source reference implementations to showcase and bootstrap the new standard. Our focus is on simplicity, security, and supporting the fullest feature set.
Predicted by Gartner to add $1.9 trillion to the global economy by 2020, the Internet of Everything (IoE) is based on the idea that devices, systems and services will connect in simple, transparent ways, enabling seamless interactions among devices across brands and sectors. As this vision unfolds, it is clear that no single company can accomplish the level of interoperability required to support the horizontal aspects of the IoE. The AllSeen Alliance, announced in December 2013, was formed with the goal to advance IoE adoption and innovation in the connected home, healthcare, education, aut...