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Pain Therapeutics' First Quarter 2006 Financial Results Reflect Operating and Financial Strength

SOUTH SAN FRANCISCO, Calif., May 4 -- Pain Therapeutics, Inc. (Nasdaq: PTIE), a biopharmaceutical company, reported first quarter 2006 financial results today. Net income for the quarter ended March 31, 2006 was $0.9 million, or $0.02 per share, compared to a net loss of $8.6 million, or $0.20 per share in the first quarter of 2005.

Cash, cash equivalents and marketable securities were $209.8 million at March 31, 2006.

"We are pleased to report solid operating and financial performance for the first quarter of 2006, with an increasing contribution from our alliance with King Pharmaceuticals, Inc., solid control over our expenses, an on-track clinical campaign with Remoxy(TM), significant regulatory progress with Oxytrex(TM) and good prospects of filing at least one additional IND this year for an undisclosed abuse-resistant drug candidate," said Remi Barbier, president and chief executive officer.

"We are reconfirming our 2006 financial guidance," said Peter S. Roddy, V.P. & Chief Financial Officer. "We continue to expect our net cash requirements for the full year 2006 will be approximately $15 million, plus or minus 10%."

Pipeline of Medicines Continues to Advance

"The first quarter of 2006 marked a strong start of an important year for Pain Therapeutics' pipeline," said Nadav Friedmann, PhD, MD., Chief Operating & Clinical Officer.

During the quarter we commenced a pivotal Phase III program with Remoxy, an abuse-resistant form of twice-daily oxycodone. The Remoxy trial benefits from a Special Protocol Assessment from the FDA. We believe the clinical program that was negotiated with the FDA provides a clear path for product approval. About 20 clinical sites across the U.S. are now initiated for the Remoxy study. In March, we had positive discussions with the FDA regarding a pivotal Phase III program for Oxytrex, a novel opioid painkiller with minimal physical dependence. We plan to advance Oxytrex into a pivotal Phase III program by year-end 2006. Then in April, we announced that we now manufacture a naltrexone dose of 0.0001 mg per tablet. This represents a 10-fold lower dose of naltrexone. We think this remarkable technical achievement may hold favorable clinical or regulatory advantages, such as a more direct comparison of Oxytrex to oxycodone.

First-Quarter Financial Highlights

Conference Call and Webcast Information

Pain Therapeutics will host a conference call today at 1:30 p.m. Pacific Time/4:30 p.m. Eastern Time to discuss this announcement. To participate in the conference call, please dial 866-578-5801 (within the U.S.) or 617-213-8058 (outside the U.S.) fifteen minutes prior to the start of the call. The call reference number is 37288731. A playback of the conference call will also be available. To access the playback, please dial 888-286-8010 (within the U.S.) or 617-801-6888 (outside the U.S.) and enter reservation number 72207618. A webcast of the conference call will be available online at www.paintrials.com.

About Pain Therapeutics, Inc.

We are a biopharmaceutical company that develops novel drugs. We have two investigational painkillers, Remoxy and Oxytrex, in Phase III clinical programs. Both drug candidates target different segments of the multi-billion dollar market to treat severe chronic pain, such as persistent low-back pain or pain due to advanced stages of osteoarthritis. We own all commercial rights to Oxytrex.

Our Alliance with King Pharmaceuticals, Inc.

In December 2005, we closed a strategic alliance with King Pharmaceuticals for Remoxy and three other abuse-resistant opioid painkillers. King paid us $150 million in cash as an up-front payment. King is also obligated to pay us up to $150 million in cash based on the successful achievement of certain clinical or regulatory milestones for Remoxy and three other abuse-resistant opioid painkillers. King funds all development expenses and is obligated to pay us a 20% royalty on net sales of drugs, except as to the first $1 billion in cumulative net sales, for which the royalty is set at 15%. In exchange, King received worldwide commercial rights to Remoxy and three other abuse- resistant drugs developed under the alliance.

Note Regarding Forward-Looking Statements: This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the "Act"). Pain Therapeutics disclaims any intent or obligation to update these forward-looking statements, and claims the protection of the Safe Harbor for forward-looking statements contained in the Act. Examples of such statements include, but are not limited to, any statements relating to the timing, scope or expected outcome of the Company's clinical development of its drug candidates, the potential benefits of the Company's drug candidates, the Company's expected cash requirements and provision for taxes in 2006, and the size of the potential market for the Company's products. Such statements are based on management's current expectations, but actual results may differ materially due to various factors. Such statements involve risks and uncertainties, including, but not limited to, those risks and uncertainties relating to difficulties or delays in development, testing, regulatory approval, production and marketing of the Company's drug candidates, unexpected adverse side effects or inadequate therapeutic efficacy of the Company's drug candidates that could slow or prevent product approval or market acceptance (including the risk that current and past results of clinical trials are not necessarily indicative of future results of clinical trials), the uncertainty of patent protection for the Company's intellectual property or trade secrets, the Company's ability to obtain additional financing if necessary and unanticipated research and development and other costs. For further information regarding these and other risks related to the Company's business, investors should consult the Company's filings with the Securities and Exchange Commission.

                          -Financial Tables Follow-


                           PAIN THERAPEUTICS, INC.
                      CONDENSED STATEMENTS OF OPERATIONS
                   (in thousands, except per share amounts)
                                 (Unaudited)

                                                            Three Months Ended
                                                                 March 31,
                                                              2006      2005
    Revenue:
      Program fee revenue                                    $6,550       $--
      Collaboration revenue                                   8,776        --
        Total revenue                                        15,326        --
    Operating expenses (1):
      Research and development                               12,854     8,122
      General and administrative                              1,970     1,038
        Total operating expenses                             14,824     9,160
    Operating income (loss)                                     502    (9,160)
    Other income:
     Interest income                                          2,088       571
    Income (loss) before provision for income taxes           2,590    (8,589)
    Provision for income taxes                                1,713        --
    Net income (loss)                                          $877   $(8,589)
    Earnings per share
      Basic                                                   $0.02    $(0.20)
      Diluted                                                 $0.02    $(0.20)
    Weighted-average shares used to compute earnings per share
      Basic                                                  43,995    43,664
      Diluted                                                45,505    43,664

    (1) Included in research and development and general and administrative
        expenses are non-cash equity related expenses of $957 thousand and
        $728 thousand, respectively, totaling $1,685 thousand for the three
        months ended March 31,2006.  The non-cash equity related expense was
        immaterial for the three months ended March 31, 2005.


                           PAIN THERAPEUTICS, INC.
                           CONDENSED BALANCE SHEETS
                                (in thousands)

                                                       March 31,  December 31,
                                                          2006      2005(2)
                                                       (Unaudited)
    Assets
    Current assets:
      Cash, cash equivalents and marketable securities  $209,788     $212,652
      Collaboration revenue receivable                     4,234          889
      Prepaid expenses                                       125          623
        Total current assets                             214,147      214,164
    Property and equipment, net                            1,556        1,556
    Other assets                                              75           75
        Total assets                                    $215,778     $215,795
    Liabilities and stockholders' equity
    Current liabilities:
      Accounts payable                                      $820         $998
      Accrued development expense                          6,318        4,461
      Deferred program fee revenue - current portion      26,200       26,200
      Accrued compensation and benefits                      775          501
      Other accrued liabilities                            1,847          187
        Total current liabilities                         35,960       32,347
    Non-current liabilities:
      Deferred program fee revenue - non-current portion 113,538      120,088
        Total liabilities                                149,498      152,435
    Stockholders' equity:
      Common stock                                            44           44
      Additional paid-in-capital                         208,868      206,489
      Accumulated other comprehensive loss                  (815)        (479)
      Accumulated deficit                               (141,817)    (142,694)
        Total stockholders' equity                        66,280       63,360
        Total liabilities and stockholders' equity      $215,778     $215,795

    (2) Derived from audited financial statements.

SOURCE Pain Therapeutics, Inc.
05/04/2006
CONTACT: Peter S. Roddy, Vice President & Chief Financial Officer of
Pain Therapeutics, Inc., +1-650-825-3330 or proddy@paintrials.com; or Carney
Duntsch (Media) of Burns McClellan, +1-212-213-0006, for Pain Therapeutics, Inc.
Web site: http://www.paintrials.com
(PTIE)

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