Transition Therapeutics Announces Third Quarter Fiscal 2013 Financial Results
TORONTO, May 7, 2013 /PRNewswire/ – Transition Therapeutics Inc. (“Transition” or the “Company”) (TSX: TTH; NASDAQ: TTHI), a
product-focused biopharmaceutical company developing therapeutics for
disease indications with large markets, today announced its financial
results for the three and nine month periods ended March 31, 2013.
During fiscal 2013 and up to the date of this press release, the Company
announced the following:
-- On April 30, 2013, Transition announced the results of a five-week proof of concept clinical study of TT-401 in type 2 diabetic and obese non-diabetic subjects. In the study, TT-401, a once-weekly administered peptide, demonstrated significant improvements in glycemic control and reductions in body weight;
-- On November 28, 2012, Transition announced that their licensing partner Elan had enrolled the first patient in a Phase II study of ELND005 for the treatment of agitation/aggression in patients with moderate to severe Alzheimer's disease;
-- On August 30, 2012, Transition announced that their licensing partner Elan had dosed the first patient in a Phase II clinical study of ELND005 in Bipolar Disorder.The study is a placebo-controlled, safety and efficacy study of oral ELND005 as an adjunctive maintenance treatment in patients with Bipolar 1 Disorder to delay the time to occurrence of mood episodes. As the first patient has been dosed in the study, Transition received a milestone payment of US$11 million from Elan.
The Company’s cash and cash equivalents and short term investments were
$22,942,039 at March 31, 2013.
The Company’s current cash projection indicates that the current cash
resources should enable the Company to execute its core business plan
and meet its projected cash requirements well beyond the next 12
For the three month period ended March 31, 2013, the Company recorded a
net loss of $2,903,331 ($0.11 loss per common share) compared to net
loss of $3,072,112 ($0.11 loss per common share) for the three month
period ended March 31, 2012.
For the nine month period ended March 31, 2013, the Company recorded net
income of $2,078,181 ($0.08 income per common share) compared to a net
loss of $9,733,290 ($0.39 loss per common share) for the nine month
period ended March 31, 2012.
Revenue is nil and $10,815,200 in the three and nine month periods ended
March 31, 2013 respectively, compared to nil in both three and nine
month periods ended March 31, 2012.
In August 2012, Elan dosed the first patient in a Phase 2 clinical study
of ELND005 in Bipolar Disorder. In light of the amendments to the Elan
agreement, the Company has recognized $10,815,200 (US$11,000,000) as
revenue during the first quarter of fiscal 2013 which represents the
milestone payment received from Elan upon their commencement of the
next ELND005 clinical trial. The payment from Elan was received on
October 1, 2012.
Research and development expenses increased $483,948 or 26% from
$1,896,585 for the three month period ended March 31, 2012 to
$2,380,533 for the three month period ended March 31, 2013. For the
nine month period ended March 31, 2013, research and development
expenses increased $365,405 or 6% to $6,576,336 from $6,210,931 for the
same period in fiscal 2012.
The increases in research and development expenses are primarily due to
an increase in clinical development costs related to TT-401/402, which
has been partially offset by a decrease in clinical development costs
related to TT-301/302 as well as reduced salaries and related costs
resulting from headcount reductions which occurred during the nine
month period ended March 31, 2012.
General and administrative expenses decreased by $151,183 or 15% from
$1,022,040 for the three month period ended March 31, 2012 to $870,857
for the same period in fiscal 2013. For the nine month period ended
March 31, 2013, general and administrative expenses decreased
$1,107,798 or 30% to $2,537,199 from $3,644,997 for the same period in
The decreases in general and administrative expenses for both the three
and nine month periods ended March 31, 2013 are due to decreases in
legal consulting fees and business development expenses. The decrease
in general and administrative expenses for the nine month period ended
March 31, 2013 is also attributed to decreased facility lease costs as
well as decreased salaries and related costs resulting from headcount
reductions as the comparative periods included severances relating to
terminations. In both the three and nine month periods ended March 31,
2013, the decrease in general and administrative expenses have been
partially offset by increased investor relation expenses.
Transition is a biopharmaceutical company, developing novel therapeutics
for disease indications with large markets. The Company’s lead CNS drug
candidate is ELND005 for the treatment of Alzheimer’s disease and
bipolar disorder. Transition lead metabolic drug candidate is TT-401
for the treatment of type 2 diabetes and accompanying obesity. The
Company’s shares are listed on the NASDAQ under the symbol “TTHI” and
the Toronto Stock Exchange under the symbol “TTH”. For additional
information about the Company, please visit www.transitiontherapeutics.com. Extracts of the Financial Statements to Follow:
CONSOLIDATED BALANCE SHEETS
In Canadian Dollars March 31, 2013 June 30, 2012 Assets Current assets Cash and cash equivalents 17,913,332 12,955,081 Short term investments 5,028,707 6,057,264 Trade and other receivables 53,875 43,658 Investment tax credits 165,065 241,951 receivable Prepaid expenses and 472,338 316,286 deposits 23,633,317 19,614,240 Non-current assets Property and equipment 184,396 215,000 Intangible assets 15,929,319 17,263,790 Total assets 39,747,032 37,093,030 Liabilities Current liabilities Trade and other payables 942,192 1,178,915 Current portion of 2,321,373 2,321,373 contingent consideration payable 3,263,565 3,500,288 Non-current liabilities Contingent consideration 1,434,958 1,434,958 payable Leasehold inducement 25,721 34,295 4,724,244 4,969,541 Equity attributable to owners of the Company Share capital 165,334,259 165,334,259 Contributed surplus 14,245,402 13,168,411 Share-based payment reserve 2,721,159 2,977,032 Deficit (147,278,032) (149,356,213) 35,022,788 32,123,489 Total liabilities and equity 39,747,032 37,093,030
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND
COMPREHENSIVE INCOME (LOSS)
For the nine and three month periods ended March 31, 2013 and 2012
Nine month Nine month Three month Three month period ended period ended period ended period ended In Canadian March 31, March 31, March 31, 2013 March 31, 2012 Dollars 2013 2012 Revenues Licensing fees 10,815,200 - - - Expenses Research and 6,576,336 6,210,931 2,380,533 1,896,584 development Selling, general and administrative expenses 2,537,199 3,644,997 870,857 1,022,040 Loss on disposal of property and equipment - 125,748 - 7,125 Operating 1,701,665 (9,981,676) (3,251,390) (2,925,749) income (loss) Interest 107,448 124,352 38,959 44,013 income Interest - (851) - - expense Foreign 269,068 124,885 309,100 (190,376) exchange gain (loss) Net income (loss) and comprehensive income (loss) for the period 2,078,181 (9,733,290) (2,903,331) (3,072,112) Basic and diluted net income (loss) per common share 0.08 (0.39) (0.11) (0.11)
Notice to Readers: Information contained in our press releases should be
considered accurate only as of the date of the release and may be
superseded by more recent information we have disclosed in later press
releases, filings with the OSC, SEC or otherwise. Except for historical
information, this press release may contain forward-looking statements,
relating to expectations, plans or prospects for Transition, including
conducting clinical trials. These statements are based upon the current
expectations and beliefs of Transition’s management and are subject to
certain risks and uncertainties that could cause actual results to
differ materially from those described in the forward-looking
statements. These risks and uncertainties include factors beyond
Transition’s control and the risk factors and other cautionary
statements discussed in Transition’s quarterly and annual filings with
the Canadian commissions.
SOURCE Transition Therapeutics Inc.