Austin, Texas-based Pain Therapeutics Inc. has released the final reports of its financial activity for the first 9 months of 2013 and 3rd quarter-end (September 30th, 2013). The company reported:
- A slight improvement in financial activity compared to the third quarter of last year (2012), with a net loss per share of $0.02 or net loss of $762,000. In 2012, the company lost $0.03 per share or net loss of $1,550,000 at the end of Q3.
- Investment and total cash position of the company is currently at $51.0 million.
CEO, Chairman and President of Pain Therapeutics, Remi Barbier, commented:
“We still expect our net cash usage to be under $10 million in CY2013. Based on recent developments, we also believe Pfizer has a robust plan to resubmit the REMOXY NDA. Key elements of this plan include doing a bioequivalence study and an abuse-potential study using REMOXY, all of which we believe may result in a stream of technical milestones now through 2015.”
Details of Financial Activity for Q3 2013:
According to the company’s current financial report, the salient points are:
- The amount of cash reflected by ‘Program Fee Revenue’ is the sum of fees received as upfront program payments (or non- cash revenue) in previous years.
- Prior investments have led to an overall decrease in the total expenses of development projects. Compared to $2.4 million in 2012-Q3, the expenses in 2013-Q3 reportedly decreased to $1.4 million.
- 9-month expense cost decreased to $3.8 million from $5.5 million in 2012 (ended in Sep 30th 2013), attributed mainly to non-cash stock and low-cash based compensations.
- Research and Development expenditures (related to non-cash stock) were also minimized from $2.0 million in 9 months (of 2012) to $1.0 million in 2013 (first 9 months), suggesting a 50% decrease.
- A decrease has also been reported in the administration and general expenses from $2.0 million in 2012-Q3 to $1.3 million at the third quarter-end this year. Likewise, the cost of administration and general expenses decreased from $5.0 million in the first 9 months of 2012 to $3.7 million this year.
- Non-cash cost in the same category in the first 9 months decreased from 2.0 million in 2012 to $1.3 million in the current year.
REMOXY is the lead product candidate of Pain Therapeutics, which is designed to mitigate the current abuse potential of Oxycodone by changing the formulation to extended release regimen for moderate to severe regimen. Pfizer Inc. is the worldwide distributor and partner in the commercialization of REMOXY.
Economics of REMOXY Deal
- Pfizer will release a payment of $15.0 million after REMOXY receive FDA approval.
- Pfizer will also provide a 20% royalty on all the sales of REMOXY in United States and 10% royalty on net sales outside of United States.
- For the first year of net sales, the royalty is set at 15% (or cumulative net sales revenue of $1.0 billion)
To read the economics of the REMOXY deal in more detail, click on the previous BioNews Texas article here.