POINT RICHMOND, Calif., May 14, 2012 /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 months ended March 31, 2012.
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Transcept reported cash, cash equivalents and marketable securities of $59.2 million at March 31, 2012. On May 1, 2012, subsequent to the close of the quarter, Transcept completed a public offering of 4.5 million shares of common stock with net proceeds to the Company of approximately $37.6 million after deducting underwriting discounts, commissions and estimated offering expenses.
On April 5, 2012, Transcept announced that Intermezzo became commercially available in the United States. Purdue Pharmaceutical Products L.P., or Purdue Pharma, plans to invest approximately $100 million to support the sales and marketing of Intermezzo® during the first twelve months of commercialization, including the deployment of a newly formed 275-person national sales force devoted exclusively to the promotion of Intermezzo. Purdue Pharma sales representatives began calling on top prescribers of insomnia medications on April 4, 2012.
“The launch of Intermezzoby our U.S. commercialization partner, Purdue Pharma, is progressing well,” stated Glenn A. Oclassen, President and Chief Executive Officer of Transcept. “The initial qualitative feedback from the market is positive and supports our view that the commercial opportunity for Intermezzo is substantial. We look forward to beginning to report Intermezzo royalty revenue for the second quarter of 2012.”
Three months ended March 31, 2012 financial results
Transcept recorded no revenue for the quarter ended March 31, 2012. License fee revenue for the same period in 2011 consisted of $3.1 million for recognition of a portion of the $25 million received from Purdue Pharma in connection with the collaboration agreement for commercialization of Intermezzo in the United States. All revenue from this license fee was recognized by year-end 2011.
Research and development expense for the quarter ended March 31, 2012 was approximately $2.36 million, compared to approximately $2.49 million for the same period in 2011. Research and development expense in both periods was primarily attributable to expense associated with our Phase 2 study for the TO-2061 development program. Research and development expense included non-cash stock compensation expense of approximately $0.26 million for the quarter ended March 31, 2012 and approximately $0.16 million for the same period in 2011.
General and administrative expense for the quarter ended March 31, 2012 was approximately $2.78 million, compared to approximately $2.54 million for the same period in 2011. The increase in general and administrative expense was primarily attributable to increased external professional fees, including third-party consultants, market research and legal fees. General and administrative expense included non-cash stock compensation expense of approximately $0.51 million for the quarter ended March 31, 2012, compared to approximately $0.59 million for the same period in 2011.
Net loss for the quarter ended March 31, 2012 was approximately $5.18 million, or $0.37 per share (basic and diluted), compared to a net loss of approximately $1.94 million, or $0.14 per share (basic and diluted), for the same period in 2011. The weighted average shares used to calculate basic and diluted net loss per share were 13,925,376 and 13,460,958 for the quarters ended March 31, 2012 and March 31, 2011, respectively. At March 31, 2012, there were 14,013,270 common shares outstanding and 3,512,762 common shares underlying outstanding options and warrants. On May 1, 2012, subsequent to the close of the quarter, Transcept completed a public offering of 4.5 million shares of common stock. Including the issuance of these shares, at May 1, 2012 there were 18,538,140 common shares outstanding and 3,370,459 common shares underlying outstanding options and warrants.
Conference call and webcast information
Transcept will host a conference call and webcast on Monday, May 14, 2012, at 4:30 p.m. ET to discuss first quarter 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 July 31, 2012. A playback of the call will be available through May 19, by dialing 855-859-2056 (U.S.) or 404-537-3406 (International), replay ID: 77576088.
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 Pharma holds commercialization and development rights for Intermezzo in the United States. Transcept is currently conducting a Phase 2 study of an investigational product, TO-2061, in patients with obsessive-compulsive disorder. For further information about Transcept, please visit www.transcept.com. For information about Intermezzo, please visit www.IntermezzoRx.com.
