Pain Therapeutics (PTIE, Financial) filed Quarterly Report for the period ended 2010-03-31.
Pain Therapeutics has a market cap of $264.3 million; its shares were traded at around $6.25 with and P/S ratio of 12.8. PTIE is in the portfolios of Daniel Loeb of Third Point, LLC, Richard Perry of Perry Capital, Jim Simons of Renaissance Technologies LLC.
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 this technology include approximately $1.3 million in the first quarter of 2010 and $0.8 million in the first quarter of 2009, primarily in contractor fees and compensation. Research and development expenses related to hemophilia and other product candidates include approximately $0.2 million in the first quarter of 2010 and $1.6 in the first quarter of 2009, primarily in contractor fees and compensation.
In 2005, King paid us a $150.0 million upfront fee in connection with the closing of our strategic alliance with them. Program fee revenues recognized from this upfront fee decreased to $2.5 for the first quarter of 2010 from $3.6 million for the first quarter of 2009. This decrease resulted from the extension of our estimate of the development period over which we recognize the program fee revenue. We extended our estimate based upon the timing of Kings recent extension of the timing for resubmission of the New Drug Application for REMOXY to the fourth quarter of 2010 as well as updated communications with King regarding product development plans for the other three product candidates under our strategic alliance with King. We expect to recognize the rest of the upfront fee ratably over our estimate of the remainder of the development period under the strategic alliance with King. We currently estimate the development period for all four expected drug candidates to extend through September 2016.
Collaboration revenues were $0.7 million for the first quarter of 2010 and $3.2 million for the first quarter of 2009. These revenues related to reimbursement of our development expenses incurred pursuant to the King strategic alliance. Collaboration revenues were lower in first quarter of 2010 as compared to the first quarter of 2009 primarily because the reimbursable expenses we incurred pursuant to the strategic alliance with King were lower from period to period. We incurred expenses of approximately $0.5 million through the first quarter of 2010 for which we expect receipt of payment from King in the second quarter of 2010.
Research and development expense decreased to $3.1 million in the first quarter of 2010 from $7.6 million in the first quarter of 2009. The decrease was primarily due to decreases in clinical and development activities for REMOXY as well as the assumption in 2009 by King of primary regulatory responsibility for REMOXY, partially offset by increased activities in metastatic melanoma, hemophilia and other projects. Research and development expenses included non-cash stock related compensation costs of $0.8 million in the first quarter of 2010 and $1.1 million in the first quarter of 2009.
General and administrative expenses consist primarily of compensation and other general corporate expenses. General and administrative expenses decreased to $1.5 million in the first quarter of 2010 from $1.7 million in the first quarter of 2009. The decrease was primarily due to decreases in compensation costs. General and administrative expenses included non-cash stock related compensation costs of $0.6 million in the first quarter of 2010 and $0.5 million in the first quarter of 2009.
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Pain Therapeutics has a market cap of $264.3 million; its shares were traded at around $6.25 with and P/S ratio of 12.8. PTIE is in the portfolios of Daniel Loeb of Third Point, LLC, Richard Perry of Perry Capital, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
All of our collaboration, contract and milestone revenues are recognized pursuant to our strategic alliance with King. In 2005, King made a non-refundable upfront cash payment of $150.0 million to us. 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 this technology include approximately $1.3 million in the first quarter of 2010 and $0.8 million in the first quarter of 2009, primarily in contractor fees and compensation. Research and development expenses related to hemophilia and other product candidates include approximately $0.2 million in the first quarter of 2010 and $1.6 in the first quarter of 2009, primarily in contractor fees and compensation.
In 2005, King paid us a $150.0 million upfront fee in connection with the closing of our strategic alliance with them. Program fee revenues recognized from this upfront fee decreased to $2.5 for the first quarter of 2010 from $3.6 million for the first quarter of 2009. This decrease resulted from the extension of our estimate of the development period over which we recognize the program fee revenue. We extended our estimate based upon the timing of Kings recent extension of the timing for resubmission of the New Drug Application for REMOXY to the fourth quarter of 2010 as well as updated communications with King regarding product development plans for the other three product candidates under our strategic alliance with King. We expect to recognize the rest of the upfront fee ratably over our estimate of the remainder of the development period under the strategic alliance with King. We currently estimate the development period for all four expected drug candidates to extend through September 2016.
Collaboration revenues were $0.7 million for the first quarter of 2010 and $3.2 million for the first quarter of 2009. These revenues related to reimbursement of our development expenses incurred pursuant to the King strategic alliance. Collaboration revenues were lower in first quarter of 2010 as compared to the first quarter of 2009 primarily because the reimbursable expenses we incurred pursuant to the strategic alliance with King were lower from period to period. We incurred expenses of approximately $0.5 million through the first quarter of 2010 for which we expect receipt of payment from King in the second quarter of 2010.
Research and development expense decreased to $3.1 million in the first quarter of 2010 from $7.6 million in the first quarter of 2009. The decrease was primarily due to decreases in clinical and development activities for REMOXY as well as the assumption in 2009 by King of primary regulatory responsibility for REMOXY, partially offset by increased activities in metastatic melanoma, hemophilia and other projects. Research and development expenses included non-cash stock related compensation costs of $0.8 million in the first quarter of 2010 and $1.1 million in the first quarter of 2009.
General and administrative expenses consist primarily of compensation and other general corporate expenses. General and administrative expenses decreased to $1.5 million in the first quarter of 2010 from $1.7 million in the first quarter of 2009. The decrease was primarily due to decreases in compensation costs. General and administrative expenses included non-cash stock related compensation costs of $0.6 million in the first quarter of 2010 and $0.5 million in the first quarter of 2009.
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