TorreyPines Therapeutics Reports Fourth Quarter and Full Year 2008 Results

LA JOLLA, Calif., March 27 /PRNewswire/ -- TorreyPines Therapeutics, Inc. (Nasdaq: TPTX) today announced financial results for the fourth quarter and year ended December 31, 2008. For the full year 2008, the Company posted revenue of $6.1 million and a net loss of $22.8 million. Cash and cash equivalents totaled $10.9 million at December 31, 2008.

On March 27, the Company filed with the SEC its Annual Report on Form 10-K, which included an audit opinion with a "going concern" explanatory paragraph. The going-concern explanatory paragraph from TorreyPines' independent registered public accounting firm expressed substantial doubt, based upon current financial resources, as to whether TorreyPines can continue to meet its obligations beyond 2009 without access to additional working capital. The Company discusses this matter, including its plans to address future financing needs, in its Annual Report on Form 10-K.

Financial Results

Revenue for the three-month period ended December 31, 2008, was $1.6 million, compared to revenue of $2.5 million for the same period in 2007. Operating expenses for the quarter ended December 31, 2008, were $7.8 million, with $3.2 million attributable to research and development, $1.5 million attributable to general and administrative expense and $3.1 million attributable to a loss on impairment of purchased patents. This compares to operating expenses of $9.0 million, with research and development expenses of $7.6 million and $1.4 million attributable to general and administrative expense for the same period last year. The Company reported a net loss for the quarter ended December 31, 2008, of $6.0 million, compared to a net loss of $8.2 million for the same period last year.

Revenue for the full year ended December 31, 2008, was $6.1 million compared to revenue of $9.9 million for the same period in 2007. Operating expenses for the 12-month period were $27.8 million, with $18.9 million attributable to research and development, $5.8 million attributable to general and administrative expense and $3.1 million attributable to a loss on impairment of purchased patents. This compares to operating expenses for the same 12-month period last year of $33.6 million, with $28.0 million attributable to research and development and $5.6 million attributable to general and administrative expense. The Company reported a net loss for the year ended December 31, 2008, of $22.8 million compared to a net loss of $23.4 million for the same period last year.

TorreyPines' complete fiscal 2008 annual report will be available on TorreyPines' Web site: www.tptxinc.com. Go to the investor center then click on SEC filings.

About TorreyPines Therapeutics, Inc.

TorreyPines Therapeutics, Inc. is a biopharmaceutical company committed to providing patients with better alternatives to existing therapies through the research, development and commercialization of small molecule compounds. The company's goal is to develop versatile product candidates each capable of treating a number of acute and chronic diseases and disorders such as migraine, acute and chronic pain, and xerostomia. The company currently has three clinical stage product candidates: two ionotropic glutamate receptor antagonists and one muscarinic receptor agonist. Further information is available at www.tptxinc.com.

This press release contains forward-looking statements or predictions. Such statements are subject to numerous known and unknown risks, uncertainties and other factors, which may cause TorreyPines' actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These and other risks which may cause results to differ are described in greater detail in the "Risk Factors" section of TorreyPines' annual report on Form 10-K for the year ended December 31, 2008 and TorreyPines other SEC reports. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. This caution is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are qualified in their entirety by this cautionary statement and TorreyPines undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.

                                 (Tables Follow)



                          TorreyPines Therapeutics, Inc.
                      Condensed Consolidated Balance Sheets

                                  (in thousands)

                                             December 31,   December 31,
                                                 2008           2007
                                             ------------   ------------
                                              (Unaudited)
    Assets
    Current assets
      Cash and cash equivalents                   $10,864        $32,500
      Prepaid expenses and other
       current assets                                 187            835
                                             ------------   ------------
      Total current assets                         11,051         33,335

    Long-term assets                                   79          5,317
                                             ------------   ------------

    Total assets                                  $11,130        $38,652
                                             ============   ============

    Liabilities and stockholders' equity
    Current liabilities                            $5,305         $9,036
    Debt and other long-term liabilities            2,112            973
    Deferred revenue                                    -          2,183
                                             ------------   ------------
    Total liabilities                               7,417         12,192

    Total stockholders' equity                      3,713         26,460
                                             ------------   ------------

    Total liabilities and stockholders'
     equity                                       $11,130        $38,652
                                             ============   ============



                           TorreyPines Therapeutics, Inc.
                Condensed Consolidated Statements of Operations

                    (in thousands, except per share amounts)

                               Three months ended      Twelve months ended
                                  December 31,            December 31,
                              -------------------      -------------------
                                2008       2007         2008        2007
                              ---------  ---------    ---------  ---------
                             (Unaudited)(Unaudited)  (Unaudited)

    Revenue                    $1,590      $2,461      $6,071      $9,850

    Operating expenses:
      Research and development  3,220       7,587      18,949      27,977
      General and
       administrative           1,475       1,434       5,801       5,643
      Loss on impairment of
       purchased patents        3,074           -       3,074           -
                              -------     -------     -------     -------
    Total operating expenses    7,769       9,021      27,824      33,620

    Loss from operations       (6,179)     (6,560)    (21,753)    (23,770)

    Other income (expense)
      Interest income              36         370         453       2,069
      Interest expense            (55)       (171)       (376)       (817)
      Other income
       (expense), net             150      (1,795)     (1,109)       (851)
                              -------     -------     -------     -------
    Total other income
     (expense)                    131      (1,596)     (1,032)        401
                              -------     -------     -------     -------
    Net loss                  $(6,048)    $(8,156)   $(22,785)   $(23,369)
                              =======     =======     =======     =======
    Basic and diluted
     net loss per share        $(0.38)     $(0.52)     $(1.45)     $(1.49)
                              =======     =======     =======     =======

    Weighted average shares
     used in the computation
     of basic and diluted
     net loss per share    15,754,058  15,738,297  15,748,967  15,717,984
                           ==========  ==========  ==========  ==========

    Company contact:                           Investor contact:
    Craig Johnson                              Rhonda Chiger
    TorreyPines Therapeutics, Inc.             Rx Communications Group
    858-623-5665 X158                          (917) 322-2569
    cjohnson@TPTXinc.com                       rchiger@rxir.com

SOURCE TorreyPines Therapeutics, Inc.