MAP Pharmaceuticals Reports Third Quarter of 2012 Financial Results

Nov 01, 2012, 16:10 ET from MAP Pharmaceuticals, Inc.

MOUNTAIN VIEW, Calif., Nov. 1, 2012 /PRNewswire/ -- MAP Pharmaceuticals, Inc. (Nasdaq: MAPP) today announced financial results for the third quarter ended September 30, 2012.

The net loss for the three months ended September 30, 2012 was $12.6 million, compared to net income of $8.2 million during the same period in 2011. The net loss for the nine months ended September 30, 2012 was $43.8 million, compared to a net loss of $19.1 million during the same period in 2011. The financial results in 2011 were impacted positively by the recognition of a $20.0 million milestone payment received in August 2011 pursuant to a collaboration agreement with Allergan, Inc.

MAP Pharmaceuticals had cash and cash equivalents of $114.2 million as of September 30, 2012, compared to $98.8 million as of December 31, 2011.  The September 30, 2012 cash balance reflects the net proceeds of approximately $56 million from an equity offering completed in August 2012.

"It has been a productive time for the company as we recently resubmitted our LEVADEX NDA to the FDA," said Timothy S. Nelson, president and chief executive officer of MAP Pharmaceuticals. "We continue to dedicate ourselves to making this potential new treatment for migraine sufferers available to many of the millions of patients whose migraines are not well treated with the options available today."

Three and Nine Month Financial Results

Revenues for the three and nine months ended September 30, 2012 were $0.9 million and $2.8 million, respectively, compared to $20.8 million and $22.2 million for the same periods in 2011. The revenues for both years were due to amortization of a $60.0 million nonrefundable upfront cash payment received in February 2011, pursuant to a collaboration agreement with Allergan entered into in January 2011.  In addition, in August 2011 Allergan paid the Company a milestone payment of $20.0 million, which was recognized as collaboration revenue during the three months ended September 30, 2011.

Research and development (R&D) expenses for the three and nine months ended September 30, 2012 were $7.9 million and $26.6 million, respectively, compared to $6.7 million and $25.6 million for the same periods in 2011. For the three months ended September 30, 2012 compared to the same period in 2011, the increase in R&D expenses was due primarily to an increase in expenses related to early stage research projects. For the nine months ended September 30, 2012 compared to the same period in 2011, the increase in R&D expenses was due primarily to an increase in expenses related to early stage research projects and an increase in personnel related expenses, including stock-based compensation, partially offset by decreases in expenses related to the LEVADEX program and other administrative expenses.

Sales, general and administrative (SG&A) expenses for the three and nine months ended September 30, 2012 were $5.6 million and $20.0 million, respectively, compared to $5.9 million and $15.5 million for the same periods in 2011. For the three months ended September 30, 2012 compared to the same period in 2011, the decrease in SG&A expenses was due primarily to a decrease in professional services, partially offset by an increase in personnel related expenses, including stock-based compensation, and an increase in other administrative expenses. For the nine months ended September 30, 2012 compared to the same period in 2011, the increase in SG&A expenses was due primarily to an increase in personnel related expenses, including stock-based compensation, and an increase in other administrative expenses, partially offset by a decrease in professional services.

For the three and nine months ended September 30, 2012, non-cash stock-based compensation and depreciation were approximately $2.4 million and $7.7 million, respectively.

About MAP Pharmaceuticals

MAP Pharmaceuticals is a biopharmaceutical company focused on developing and commercializing new therapies to address undermet patient needs in neurology. The Company is developing LEVADEX®, an orally inhaled investigational drug for the acute treatment of migraine. The U.S. Food and Drug Administration (FDA) reviewed the New Drug Application (NDA) for LEVADEX and on March 26, 2012, the Company received a Complete Response letter with respect to this NDA. The Company recently announced that it has resubmitted its LEVADEX NDA to the FDA. MAP Pharmaceuticals has entered into a collaboration agreement with Allergan, Inc. to co-promote LEVADEX to neurologists and pain specialists in the U.S. and Canada. The Company also applies its proprietary drug particle and inhalation technologies to generate new pipeline opportunities by enhancing the therapeutic benefits of proven drugs, while minimizing risk by capitalizing on their known safety, efficacy and commercialization history. Additional information about MAP Pharmaceuticals can be found at http://www.mappharma.com.

Forward-Looking Statements

In addition to statements of historical facts or statements of current conditions, this press release contains forward-looking statements, including, without limitation, statements regarding the Company's LEVADEX product candidate. Actual results may differ materially from current expectations based on risks and uncertainties affecting the Company's business, including, without limitation, risks and uncertainties relating to the regulatory process to have the Company's LEVADEX product candidate approved for commercial use. The reader is cautioned not to unduly rely on the forward-looking statements contained in this press release. MAP Pharmaceuticals expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law. Additional information on potential factors that could affect MAP Pharmaceuticals' results and other risks and uncertainties are detailed in its most recent Quarterly Report on Form 10-Q, available at http://edgar.sec.gov.

CONTACT: Christopher Y. Chai, Sr. Vice President and Chief Financial Officer of MAP Pharmaceuticals, Inc., (650) 386-3107; or media, Lisa Borland, (650) 386-3122, lborland@mappharma.com.

MAP PHARMACEUTICALS, INC.

(a development stage enterprise)

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

September 30,

December 31,

2012

2011

ASSETS

Current assets:

Cash and cash equivalents

$

114,218

$

98,816

Accounts receivable

448

636

Other current assets

579

763

Total current assets

115,245

100,215

Property and equipment, net

6,488

6,786

Other assets

27

27

Restricted investment

310

310

Total assets

$

122,070

$

107,338

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

8,908

$

10,793

Current portion of deferred revenue

3,512

3,349

Total current liabilities

12,420

14,142

Deferred revenue, less current portion

50,634

53,581

Other liabilities

-

63

Total liabilities

63,054

67,786

Total stockholders' equity 

59,016

39,552

Total liabilities and stockholders' equity 

$

122,070

$

107,338

MAP PHARMACEUTICALS, INC.

(a development stage enterprise)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2012

2011

2012

2011

Collaboration revenue

$

878

$

20,837

$

2,784

$

22,232

Operating expenses:

    Research and development 

7,855

6,725

26,590

25,552

    Sales, general and administrative

5,642

5,890

19,950

15,529

    Total operating expenses

13,497

12,615

46,540

41,081

Income (loss) from operations 

(12,619)

8,222

(43,756)

(18,849)

Other expense, net 

(3)

(39)

(1)

(270)

Net income (loss)

$

(12,622)

$

8,183

$

(43,757)

$

(19,119)

Net income (loss) per share 

Basic

$

(0.38)

$

0.27

$

(1.39)

$

(0.63)

Diluted

$

(0.38)

$

0.26

$

(1.39)

$

(0.63)

Weighted average shares outstanding used in calculating net income (loss) per share 

Basic

33,369

30,440

31,569

30,329

Diluted

33,369

31,611

31,569

30,329

 

SOURCE MAP Pharmaceuticals, Inc.



RELATED LINKS

http://www.mappharma.com