Pain Therapeutics Logo

Print Print page   Email Email page   PDF Download PDF    Add to Briefcase
« Previous Release | Next Release »

Pain Therapeutics Announces Year-End 2008 Financial Results, Outlines 2009 Business Priorities

Feb 5, 2009 (GlobeNewswire via COMTEX News Network) --

             Net income of $0.35 Per Share for 2008
              $190 Million of Cash on Hand, No Debt
     Cash Requirements in 2009 Expected to be Under $10 Million

SAN MATEO, Calif., Feb. 5, 2009 (GLOBE NEWSWIRE) -- Pain Therapeutics, Inc. (Nasdaq:PTIE), a biopharmaceutical company, today reported financial results for the year ended December 31, 2008. The Company also provided an update on its cash position and outlined its business strategy for maintaining financial strength in 2009.

Net income for the year ended December 31, 2008 was $15.3 million, or $0.35 per diluted share, compared to net income of $20.3 million, or $0.44 per diluted share, for 2007. Net loss for the quarter ended December 31, 2008 was $1.4 million, or $0.03 per diluted share, compared to net income of $1.1 million, or $0.02 per diluted share for the fourth quarter of 2007.

At December 31, 2008, Pain Therapeutics had cash, cash equivalents and marketable securities of $190.1 million, no debt and approximately 42 million shares outstanding. The Company expects its cash requirements in 2009 will be under $10.0 million.

"We're bracing for a vital 2009," said Remi Barbier, Pain Therapeutics' chairman, president and chief executive officer. "We believe core strength in 2009 will be based on regulatory momentum with REMOXY(r) and clinical progress with the biotech side of Pain Therapeutics. We also recognize that financial wreckage has sent shock waves through every industry, ours included. In this environment, it's imperative to protect the strength of our balance sheet while supporting key science objectives in 2009."

2009 Financial and Operating Guidance

  *  Pain Therapeutics started 2009 with $190.1 million of cash
     and investments and no debt.

  *  We expect cash requirements in 2009 will be under $10.0
     million, which includes a significant investment in the
     growth of our biotech pipeline.  We retain commercial rights
     to our entire biotech pipeline.

  *  Pursuant to the terms of a strategic alliance, our commercial
     partner, King Pharmaceuticals, Inc., is obligated to fund
     development expenses incurred by us for REMOXY and three
     other abuse-resistant pain medications.  Upon approval,
     Pain Therapeutics will receive a running royalty equal to
     20% of net sales of drugs developed under this strategic
     alliance, except as to the first $1.0 billion in cumulative
     net sales, which royalty is set at 15%.

  *  The U.S. Food and Drug Administration (FDA) believes
     additional non-clinical data will be required to support the
     approval of REMOXY.  The FDA has not requested or recommended
     additional clinical efficacy studies prior to approval. We
     plan to meet with the FDA in Q2 2009.  We believe this FDA
     meeting will provide us with a more reliable context in which
     to make projections about REMOXY.

  *  A monoclonal antibody program, developed at Albert Einstein
     College of Medicine, is aimed at treating patients with
     late-stage melanoma.  We expect to complete a second Phase
     I study with this technology in 2009.  We are also exploring
     the use of similar technology to treat other important
     disease areas.  This drug asset is unpartnered.

  *  A gene transfer program, developed at Stanford University,
     is aimed at correcting an underlying genetic defect in
     patients with hemophilia.  We expect to complete a significant
     animal study with this technology in 2009.  We are also
     planning a first-in-human clinical study with this
     technology in 2009.  This drug asset is unpartnered.

  *  In general, our R&D goals in 2009 will be to continue to
     focus on clinical stage drugs that can benefit from our core
     expertise in drug development, to outsource certain functions
     that permit the efficient deployment of our resources and to
     develop promising but unpartnered biotech assets.

2008 Financial Highlights

  *  Milestone revenue of $20.0 million for 2008 included a
     $15.0 million milestone payment from King related to the
     acceptance by the FDA of the New Drug Application for REMOXY
     and a $5.0 million milestone payment from King related to
     the acceptance by the FDA of an investigational new drug
     application for PTI-721.

  *  Collaboration revenue for 2008 was $29.4 million, compared
     to $42.7 million for 2007 and reflects reimbursement of our
     development expenses under our strategic alliance with King.

  *  Research and development expenses for 2008 decreased to
     $45.8 million from $47.7 million for 2007.  Research and
     development expenses for the fourth quarter of 2008 decreased
     to $9.2 million from $13.6 million for the fourth quarter of
     2007.  These decreases were mostly due to decreased spending
     for REMOXY and the other abuse-resistant product candidates
     under our strategic alliance with King.  Research and
     development expenses included non-cash stock-related
     compensation costs of $6.1 million for 2008 and $3.7 million
     for 2007.

  *  General and administrative expenses for 2008 increased to
     $9.2 million from $8.1 million for 2007.  This increase was
     mostly due to increased non-cash stock-related compensation
     costs. General and administrative expenses included non-cash
     stock-related compensation costs of $4.1 million for 2008
     and $2.6 million for 2007.

  *  Our income tax benefit for 2008 was $0.6 million, primarily
     because of the expected value of our tax credits and other
     tax carry forwards.

About Pain Therapeutics, Inc.

Pain Therapeutics, Inc. is a biopharmaceutical company that develops novel drugs. In addition to REMOXY, the Company has three drug candidates in clinical programs, including a novel radio-labeled monoclonal antibody to treat metastatic melanoma, as well as PTI-202 and PTI-721. Pain Therapeutics is also working on a new treatment for patients with hemophilia.

For more information, please visit

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, statements related to the development of REMOXY, including the timing and expected utility of a proposed meeting with the FDA; clinical development of other product candidates, including the timing of completion of clinical trials and animal studies for melanoma and hemophilia, respectively, and the initiation of clinical trials in hemophilia; and cash requirements for 2009 and potential uses of such cash. 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 obtaining regulatory approval for the Company's drug candidates, development and testing of the Company's drug candidates, including the risk of being required by regulatory authorities to conduct unanticipated additional clinical and studies or submit additional data, unexpected adverse side effects or inadequate therapeutic efficacy of the Company's drug candidates (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, unanticipated research and development and other costs and the timing and receipt of funds from the Company's commercial partner for REMOXY, the potential for abuse and misuse resistant pain medications to be developed by competitors and potential competitors to the Company. 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.

                        PAIN THERAPEUTICS, INC.
                (in thousands, except per share amounts)

                       Three Months Ended            Year Ended
                           December 31,              December 31,
                      ----------------------    ---------------------
                        2008          2007        2008         2007
                      --------      --------    --------     --------
    revenue            $ 4,658      $ 10,468    $ 29,377     $ 42,746
   Milestone revenue        --            --      20,000           --
   Program fee
    revenue              3,587         3,587      14,348       23,238
                      --------      --------    --------     --------
     Total revenue       8,245        14,055      63,725       65,984
 Operating expenses
   Research and
   development           9,190        13,559      45,817       47,730
   General and
   administrative        1,927         2,134       9,196        8,085
                      --------      --------    --------     --------
      expenses          11,117        15,693      55,013       55,815
                      --------      --------    --------     --------
      income            (2,872)       (1,638)      8,712       10,169
 Interest income           866         2,769       6,018       10,136
                      --------      --------    --------     --------
 Income (loss)
  before income
  tax benefit           (2,006)        1,131      14,730       20,305
 Income tax benefit       (617)           --        (617)          --
                      --------      --------    --------     --------
 Net income (loss)    $ (1,389)      $ 1,131    $ 15,347     $ 20,305
                      ========      ========    ========     ========

 Net income (loss)
  per share
  Basic                $ (0.03)       $ 0.03      $ 0.36       $ 0.46
                      ========      ========    ========     ========
  Diluted              $ (0.03)       $ 0.02      $ 0.35       $ 0.44
                      ========      ========    ========     ========
  shares used in
  net income
  per share
  Basic                 42,044        44,186      42,252       44,150
                      ========      ========    ========     ========
  Diluted               43,569        46,400      43,857       45,676
                      ========      ========    ========     ========

                         PAIN THERAPEUTICS, INC.
                         CONDENSED BALANCE SHEETS

                                                   December 31,
                                                  2008        2007(1)
                                               ---------    ---------
 Current assets
   Cash, cash equivalents and
    marketable securities                      $ 190,095    $ 205,071
   Other current assets                              541          303
                                               ---------    ---------
     Total current assets                        190,636      205,374
 Non-current assets
   Property and equipment, net                       774        1,607
   Other assets                                    2,026          644
                                               ---------    ---------

     Total assets                              $ 193,436    $ 207,625
                                               =========    =========
 Liabilities and stockholders' equity
 Current liabilities
   Accounts payable                              $ 2,216      $ 3,624
   Accrued development expense                     1,029          817
   Deferred program fee revenue
    - current portion                             14,348       14,348
   Other accrued liabilities                       2,521        1,868
                                               ---------    ---------
     Total current liabilities                    20,114       20,657
 Non-current liabilities
   Deferred program fee revenue
    - non-current portion                         68,154       82,501
   Other liabilities                                 882          553
                                               ---------    ---------

     Total liabilities                            89,150      103,711
                                               ---------    ---------
 Stockholders' equity
   Common stock                                       42           44
   Additional paid-in-capital                    218,021      221,415
   Accumulated other
    comprehensive income                             325          584
   Accumulated deficit                          (114,102)    (118,129)
                                               ---------    ---------

     Total stockholders' equity                  104,286      103,914
                                               ---------    ---------

     Total liabilities and
      stockholders' equity                     $ 193,436    $ 207,625
                                               =========    =========

     (1) Derived from audited financial statements.

This news release was distributed by GlobeNewswire,

SOURCE: Pain Therapeutics, Inc.

Pain Therapeutics, Inc.
         Christi Waarich, Senior Manager of Investor Relations

(C) Copyright 2009 GlobeNewswire, Inc. All rights reserved.

News Provided by COMTEX

Close window | Back to top