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Pain Therapeutics Reports Operating Results (10-Q)

October 29, 2010 | About:
10qk

10qk

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Pain Therapeutics (PTIE) filed Quarterly Report for the period ended 2010-09-30.

Pain Therapeutics has a market cap of $319.7 million; its shares were traded at around $7.54 with and P/S ratio of 15.6. PTIE is in the portfolios of Jim Simons of Renaissance Technologies LLC, Mario Gabelli of GAMCO Investors.

Highlight of Business Operations:

All of our collaboration, contract and milestone revenues are recognized pursuant to our strategic alliance with King. King has made non-refundable upfront cash payments of $155.0 million to us, including the $5.0 million King paid us in July 2010. King has made milestone payments to us of $25.0 million related to clinical and regulatory milestones under the strategic alliance. We could also receive from King up to $125.0 million in additional milestone payments in the course of clinical development of the opioid painkillers under the strategic alliance.

Our technology has been applied across certain of our portfolio of drug candidates. Data, know-how, personnel, clinical results, research results and other matters related to the research and development of any one of our drug candidates may also relate to, and further the development of, our other drug candidates. For example, we expect that results of non-clinical studies, such as pharmacokinetics, toxicology and other studies, regarding certain components of our drug candidate REMOXY to be applicable to the other drug candidates that may arise out of our collaboration with King since all such drug candidates are expected to utilize such components. As a result, costs allocated to a specific drug candidate may not necessarily reflect the actual costs surrounding research and development of that drug candidate due to cross application of the foregoing. We are also developing a novel antibody drug candidate to treat metastatic melanoma. Research and development expenses related to the metastatic melanoma technology include approximately $0.1 million and $1.8 million in the three and nine months ended September 30, 2010 and $0.9 million and $2.7 million in the three and nine months ended September 30, 2009, respectively, primarily in contractor fees and compensation. Research and development expenses related to hemophilia and other product candidates include approximately $0.4 million and $0.7 million three and nine months ended September 30, 2010 and $0.6 million and $3.1 million in the three and nine months ended September 30, 2009, respectively, primarily in contractor fees and compensation.

Research and development expense decreased to $2.4 million from $4.5 million and to $7.7 million from $17.2 million in the three and nine months ended September 30, 2010 and 2009, respectively. The decrease was primarily due to decreases in clinical and development activities for our product candidates and lower operating costs. Research and development expenses for non-cash stock related compensation costs decreased to $0.6 million from $1.0 million and to $2.2 million from $2.9 million in the three and nine months ended September 30, 2010 and 2009, respectively.

General and administrative expenses consist primarily of compensation and other general corporate expenses. General and administrative expenses increased to $2.1 million from $1.5 million in the three months ended September 30, 2010 and 2009, respectively and to $5.3 million from $4.7 million in the nine months ended September 30, 2010 and 2009. The change was primarily due to fluctuations in and timing of operating costs. General and administrative expenses for non-cash stock related compensation costs decreased to $0.5 million from $0.7 million in the three months ended September 30, 2010 and 2009, respectively and to $1.8 million from $1.9 million for the nine months ended September 30, 2010 and 2009.

Interest and other income, net, decreased to $0.5 million from $0.6 million and increased to $1.3 million from $1.2 million in the three and nine months ended September 30, 2010 and 2009, respectively We expect our interest income to decrease in the future as we use cash to fund our operations.

Net cash provided by operating activities was $3.2 million for the nine months ended September 30, 2010 compared to net cash used in operating activities of $12.7 million for the nine months ended September 30, 2009. This change was primarily due to $5.0 million received from King in connection with the amendment to our strategic alliance in June 2010, $3.8 million received from federal income tax refunds and decreased research and development activities.

Read the The complete Report

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