MOUNTAIN VIEW, Calif., March 2 /PRNewswire-FirstCall/ -- MAP Pharmaceuticals, Inc. today announced financial results for the fourth quarter and year ended December 31, 2008.
The net loss for the fourth quarter ended December 31, 2008 was $21.8 million compared with $14.9 million during the same period in 2007. The net loss for the year ended December 31, 2008 was $72.9 million compared with $40.1 million for the year ended December 31, 2007.
MAP Pharmaceuticals had $44.7 million in cash, cash equivalents and short-term investments as of December 31, 2008. Subsequent to December 31, 2008, the company received a $40 million upfront payment from AstraZeneca pursuant to the worldwide Unit Dose Budesonide, UDB, collaboration signed on December 19, 2008.
“Despite the recently announced results from our UDB clinical trial, MAP Pharmaceuticals made progress in a number of areas in 2008. Moving into 2009, we have a strong balance sheet, a robust pipeline and significant upcoming milestones, including efficacy results from our first Phase 3 clinical trial of MAP0004 for the potential treatment of migraine,” said Timothy S. Nelson, President and Chief Executive Officer of MAP Pharmaceuticals.
2008 and 2009 Year to Date Key Developments
Unit Dose Budesonide
MAP0004
Pipeline Development
Other
Fourth Quarter and 2008 Year End Financial Results
Research and development expenses for the fourth quarter and year ended December 31, 2008 were $17.7 million and $59.3 million, respectively, compared to $13.0 million and $31.4 million, respectively, for the same periods in 2007. The increase in research and development expenses for the fourth quarter ended December 31, 2008 as compared to the same period in 2007 was primarily driven by an increase in clinical expenses to support Phase 3 clinical programs initiated in 2008 for our two lead product candidates, UDB and MAP0004, and an increase in personnel related expenses to support these clinical programs. The increase in research and development expenses for the year ended December 31, 2008 as compared to the year ended December 31, 2007 was primarily driven by an increase in clinical expenses to support Phase 3 clinical programs initiated in 2008 for UDB and MAP0004, and increases in personnel related expenses to support these clinical programs, as well as manufacturing and stock-based compensation.
Sales, general and administrative expenses for the fourth quarter and year ended December 31, 2008 were $3.7 million and $13.4 million, respectively, compared to $2.7 million and $9.6 million, respectively, for the same periods in 2007. The increase in sales, general and administrative expenses for the fourth quarter ended December 31, 2008 as compared to the same period in 2007 was primarily related to increases in professional fees, stock-based compensation and personnel related expenses. The increase in sales, general and administrative expenses for the year ended December 31, 2008 as compared to the year ended December 31, 2007 was primarily related to increases in stock-based compensation, personnel related expenses, outside services and professional fees.
MAP Pharmaceuticals had cash, cash equivalents and short-term investments as of December 31, 2008 of $44.7 million, compared to $95.0 million as of December 31, 2007. For the fourth quarter and year ended December 31, 2008, non-cash share-based compensation and depreciation was approximately $1.2 million and $5.2 million, respectively. Subsequent to December 31, 2008, the company received a $40 million upfront payment from AstraZeneca pursuant to the worldwide UDB collaboration signed on December 19, 2008.
2009 Financial Outlook
MAP Pharmaceuticals’ cash, cash equivalents and short-term investments as of December 31, 2008 and the upfront payment received from AstraZeneca in February 2009 provide operating capital for at least the next twelve months, and the company currently expects its cash usage for fiscal year 2009 to be less than its cash usage for fiscal year 2008. As previously disclosed, in light of the clinical results released recently with respect to MAP Pharmaceuticals’ first Phase 3 clinical trial of UDB, the company and AstraZeneca are conducting further analyses of the clinical data to determine appropriate next steps for the program. In addition, the company expects to announce clinical results from the efficacy portion of its first Phase 3 clinical trial for MAP0004 during the first half of 2009. At that time the company expects to provide updated financial guidance for 2009.
About MAP Pharmaceuticals
MAP Pharmaceuticals is dedicated to developing and commercializing new therapies for children and adults suffering from chronic conditions that are not adequately treated by currently available medicines. The company has two product candidates in Phase 3 clinical trials. Unit Dose Budesonide is being developed in collaboration with AstraZeneca for the potential treatment of asthma in children, and MAP0004 is being developed for the potential treatment of migraine. In addition, MAP Pharmaceuticals generates new pipeline opportunities by applying its proprietary drug particle and inhalation technologies to enhance the therapeutic benefits of proven drugs, while minimizing risk, by capitalizing on their known safety, efficacy and commercialization history.
Additional information about MAP Pharmaceuticals can be found at http://www.mappharma.com.
Forward-Looking Statements
In addition to statements of historical facts or statements of current conditions, this press release contains forward-looking statements, including with respect to MAP Pharmaceuticals’ expected cash requirements during 2009 described above. Actual results may differ materially from current expectations based on risks and uncertainties affecting the company’s business, including, without limitation, risks and uncertainties relating to the following: the enrollment, conduct, completion and reporting of clinical trials as well as risks related to the failure to achieve favorable clinical outcomes and the risk that AstraZeneca may not continue its collaboration with MAP Pharmaceuticals. The reader is cautioned not to unduly rely on the forward-looking statements contained in this press release. MAP Pharmaceuticals expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law. Additional information on potential factors that could affect MAP Pharmaceuticals’ results and other risks and uncertainties are detailed in its Quarterly Report on Form 10-Q, filed with the SEC on November 13, 2008, and available at http://edgar.sec.gov.
CONTACT: Christopher Y. Chai, Chief Financial Officer of MAP
Pharmaceuticals, Inc., +1-650-386-3107; or media, Nicole Foderaro of
Invigorate Communications, +1-415-946-1058, nfoderaro@invigoratepr.com
Web site: http://www.mappharma.com/
