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Transcept Pharmaceuticals Inc. Reports Operating Results (10-Q)

November 15, 2010 | About:
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10qk

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Transcept Pharmaceuticals Inc. (TSPT) filed Quarterly Report for the period ended 2010-09-30.

Transcept Pharmaceuticals Inc. has a market cap of $80.22 million; its shares were traded at around $5.97 with and P/S ratio of 15.4. TSPT is in the portfolios of Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

We have incurred net losses since inception as we have devoted substantially all of our resources to research and development, including contract manufacturing and clinical trials. As of September 30, 2010, we had an accumulated deficit of $93.6 million. Our net loss for the years ended December 31, 2009, 2008 and 2007 was $21.8 million, $20.0 million and $20.4 million, respectively. Our net loss for the three and nine months ended September 30, 2010 was $2.8 million and $6.7 million, respectively. As of September 30, 2010, we had cash, cash equivalents, and marketable securities of $74.2 million and working capital of $61.9 million.

We recognize revenue from the $25.0 million non-refundable license fee received pursuant to our Collaboration Agreement with Purdue ratably over an estimated 24-month period that commenced in August 2009 and ends in July 2011. This period represents the estimated period for which we have significant participatory obligations under the Collaboration Agreement. The revenue recognized in connection with the license fee during the three and nine months ended September 30, 2010 was $3.1 million and $9.4 million, respectively. The revenue recognized during the three and nine months ended September 30, 2009 was $2.1 million.

Research and development expense increased 35% to $2.89 million for the three months ended September 30, 2010 from $2.14 million for the comparable period in 2009. The increase of approximately $0.75 million for the three months ended September 30, 2010 is primarily attributable to clinical expense associated with our Intermezzo® highway driving study as well as pharmacokinetic studies for TO-2061, partially offset by payroll related savings due to the reduction in force implemented in the third and fourth quarters of 2009.

General and administrative expense decreased 22% to $2.98 million for the three months ended September 30, 2010 from $3.84 million for the comparable period in 2009. The decrease of approximately $0.86 million for the three months ended September 30, 2010 as compared to September 30, 2009 is attributable to the following:

Interest income decreased 55% to $25,000 for the three months ended September 30, 2010 from $55,000 for the comparable period in 2009. The decrease of approximately $30,000 for the three months ended September 30, 2010 is attributable to reduced balances and changes in the mix of investments toward lower risk, lower yield investments.

Interest expense decreased 25% to $3,000 for the three months ended September 30, 2010 from $4,000 for the comparable period in 2009. The $1,000 decrease for the three months ended September 30, 2010 was due to a lower average outstanding debt during the 2010 period as compared to the same period in the prior year.

Read the The complete Report

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