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

November 16, 2009 | About:
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10qk

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Transcept Pharmaceuticals Inc. (TSPT) filed Quarterly Report for the period ended 2009-09-30.

Transcept Pharmaceuticals, Inc., formerly Novacea, Inc. is a biopharmaceutical company focused on in-licensing, developing and commercializing therapies for the treatment of cancer. The Company's product portfolio features two clinical-stage oncology product candidates with worldwide rights, Asentar and AQ4N, each of which is a potential treatment for certain types of cancer. The Company continues to be primarily involved in performing research and development activities, hiring personnel, licensing new products, and raising capital to support and expand these activities. Its goal is to become a leading specialty pharmaceutical company addressing important therapeutic needs in psychiatry and sleep medicine. Transcept Pharmaceuticals Inc. has a market cap of $67.67 million; its shares were traded at around $5.16 with and P/S ratio of 4.06.

Highlight of Business Operations:

Research and development expenses decreased 13% to $2.14 million for the three months ended September 30, 2009 from $2.45 million for the comparable period in 2008. The decrease of $0.31 million for the three months ended September 30, 2009 is primarily attributable to reduced levels of activities for regulatory affairs and contract manufacturing. These decreases were partially offset by severance expenses incurred in connection with the restructuring announced in August 2009. In addition, non-cash stock-based compensation expenses increased for the quarter ended September 30, 2009 over the comparable period in 2008.

General and administrative expenses increased 79% to $3.84 million for the three months ended September 30, 2009 from $2.14 million for the comparable period in 2008. The approximate $1.70 million increase for the three months ended September 30, 2009 as compared to September 30, 2008 consists of the following:

Interest income decreased 59% to $55,000 for the three months ended September 30, 2009 from $134,000 for the comparable period in 2008. The decrease of approximately $79,000 for the three months ended September 30, 2009 is primarily attributable to changing the mix of investments toward lower risk, lower yield instruments due to the downturn in the U.S. and world economy during the second half of 2008. In addition, investments held during the third quarter of 2008 were, in the aggregate, purchased at a discount to face value whereas investments held during the third quarter of 2009 were primarily acquired at a premium. Amortization of bond premiums is recorded as a reduction of interest income.

Interest expense decreased 98% to $4,000 for the three months ended September 30, 2009 from $176,000 for the comparable period in 2008. The $172,000 decrease for the three months ended September 30, 2009 was primarily attributable to lower average outstanding debt during the 2009 period as compared to the same period in the prior year due to the repayment in full of our debt under a Loan and Security Agreement with Hercules Technology Growth Capital during the first quarter 2009.

Research and development expenses decreased 25% to $6.61 million for the nine months ended September 30, 2009 from $8.85 million for the nine months ended September 30, 2008. The decrease of $2.24 million for the nine months ended September 30, 2009 is primarily attributable to Intermezzo® development costs as a result of the following:

General and administrative expenses increased 144% to $13.07 million for the nine months ended September 30, 2009 from $5.37 million for the comparable period in 2008. The approximate $7.70 million increase for the nine months ended September 30, 2009 as compared to September 30, 2008, respectively, consists of the following:

Read the The complete Report

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