Investor Relations (IR) Questions: Transcept Pharmaceuticals TSPT
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Answers received: May 2013
Answers to the following #IRQ were gathered from multiple sources cited below including a telephone interview with TSPT's CFO, Leone Patterson.
BACKGROUND INFORMATION:
-a- “Transcept Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on the development and commercialization of proprietary products that address important therapeutic needs in the field of neuroscience.”
-b- Intermezzo® is currently TSPT's sole product on the market. “Intermezzo® (zolpidem tartrate) is the first and only prescription sleep aid approved by the FDA for use as needed to help treat adults with insomnia when they have difficulty falling back to sleep after waking up in the middle of the night.”
-c- The company is partnered with Purdue Pharma to commercialize Intermezzo®. The partnership allows TSPT to facilitate Purdue Pharma's “analgesic sales force of approximately 525 sales representatives and an Intermezzo-only contract sales force of approximately 90 sales representatives”.
-d- In December 2012, the company “announced that a Phase 2 clinical trial of TO-2061, an investigational product for adjunctive therapy in patients with obsessive compulsive disorder... did not meet its primary endpoint. Based on this result, we [TSPT] have discontinued the clinical development of TO-2061.”
QUESTIONS:
-1- When is the last time TSPT raised cash through an offering (diluted)?
-e- April 26, 2012, TSPT priced an offering of 4,500,000 at $9.00 per share. The underwriters were given a 30-day option to purchase up to an additional 675,000 shares to cover over-allotments. Net proceeds after fees were approximately $37.6 million.
-2- How much cash (not cash equivalents) does TSPT have?
-f- On December 31, 2012 Cash and Cash Equivalents were reported at $39,368,000 and Marketable Securities were 45,907,000.
-ti- The company's cash position will be updated May 8, 2013 on the First Quarter Financial Results Conference Call.
-3- What and approximately when is the next known catalyst?
-ti- TSPT has no active studies. However, the company is actively seeking to expand its product pipeline by exploring the in-licensing, acquisition, development and commercialization of product candidates and approved products in the field of neuroscience. The company will talk about this May 8, 2013 on the First Quarter Financial Results Conference Call. However, a deal will not be announced at that time.
-ti- A catalyst could also come in the form of royalties paid by Purdue based on the sales of Intermezzo. In our conversation, Mr. Patterson said that he believed that it was last reported that about 2,000 scripts per week were being written. The company will most likely have some updates regarding the number of scripts being written on the May 8, 2013 conference call.
-4- What is TSPT's quarterly cash burn?
-g- Total Operating Expenses were:
$21,454,000 in 2012,
$23,458,000 in 2011, and
$21,722,000 in 2010.
-ti- The figures reported in -g- above are an accurate account for accounting purposes. However, there are non-cash items like stock-options that cut the number by about $3,000,000.
-h- According to TSPT's 10-K dated March 12, 2013, the company believes it has sufficient capital resources to fund operations for at least 12 months.
-ti- QUESTION: “Would it be fair to say that with the termination of the TSPT's clinical trial in December [and the subsequent [29%] reduction in work force], TSPT actually has enough cash to fund operations beyond what the company has stated? ANSWER: “Yea, I think it's fair to say... We publicly have said that on a historical bases our cash burn has been about a million and a half... So you can do the math...”
-5- Does TSPT have an existing line of credit and if so how much can they draw against it?
-ti- The company does not have an existing line of credit and carries no debt.
-6- Does TSPT have an At-The-Market (ATM) sales agreement?
-ti- TSPT renewed its shelf filing last week, (April 26, 2013) for up to $75,000,000. With it, an At-The-Market program was put in place that allows the company to sell up $20,000,000 in shares on the open market over a period of three years. At this time the company has no plans to utilize the shelf and/or ATM.
For additional information on the shelf filing, seehttp://ir.transcept.com/secfiling.cfm?filingID=1193125-13-177733.
SOURCES:
-a- TSPT website: http://www.transcept.com/component/option,com_frontpage/Itemid,1/
-b- TSPT website: http://www.myintermezzo.com/portal/f?p=myintermezzo:home:0
-c- Page 17, TSPT Form 10-K, fiscal year ending 12/31/2012http://ir.transcept.com/secfiling.cfm?filingID=1178711-13-12
-d- Page 3, TSPT Form 10-K, fiscal year ending 12/31/2012http://ir.transcept.com/secfiling.cfm?filingID=1178711-13-12
-e- TSPT PR http://ir.transcept.com/releasedetail.cfm?ReleaseID=667618
-f- Page 54, TSPT Form 10-K, fiscal year ending 12/31/2012http://ir.transcept.com/secfiling.cfm?filingID=1178711-13-12
-g- Page 39, TSPT Form 10-K, fiscal year ending 12/31/2012http://ir.transcept.com/secfiling.cfm?filingID=1178711-13-12
-h- Page 21, TSPT Form 10-K, fiscal year ending 12/31/2012http://ir.transcept.com/secfiling.cfm?filingID=1178711-13-12
-ti- Telephone interview on May 2, 2013 with Leone Patterson, TSPT CFO.
Answers to the following #IRQ were gathered from multiple sources cited below including a telephone interview with TSPT's CFO, Leone Patterson.
BACKGROUND INFORMATION:
-a- “Transcept Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on the development and commercialization of proprietary products that address important therapeutic needs in the field of neuroscience.”
-b- Intermezzo® is currently TSPT's sole product on the market. “Intermezzo® (zolpidem tartrate) is the first and only prescription sleep aid approved by the FDA for use as needed to help treat adults with insomnia when they have difficulty falling back to sleep after waking up in the middle of the night.”
-c- The company is partnered with Purdue Pharma to commercialize Intermezzo®. The partnership allows TSPT to facilitate Purdue Pharma's “analgesic sales force of approximately 525 sales representatives and an Intermezzo-only contract sales force of approximately 90 sales representatives”.
-d- In December 2012, the company “announced that a Phase 2 clinical trial of TO-2061, an investigational product for adjunctive therapy in patients with obsessive compulsive disorder... did not meet its primary endpoint. Based on this result, we [TSPT] have discontinued the clinical development of TO-2061.”
QUESTIONS:
-1- When is the last time TSPT raised cash through an offering (diluted)?
-e- April 26, 2012, TSPT priced an offering of 4,500,000 at $9.00 per share. The underwriters were given a 30-day option to purchase up to an additional 675,000 shares to cover over-allotments. Net proceeds after fees were approximately $37.6 million.
-2- How much cash (not cash equivalents) does TSPT have?
-f- On December 31, 2012 Cash and Cash Equivalents were reported at $39,368,000 and Marketable Securities were 45,907,000.
-ti- The company's cash position will be updated May 8, 2013 on the First Quarter Financial Results Conference Call.
-3- What and approximately when is the next known catalyst?
-ti- TSPT has no active studies. However, the company is actively seeking to expand its product pipeline by exploring the in-licensing, acquisition, development and commercialization of product candidates and approved products in the field of neuroscience. The company will talk about this May 8, 2013 on the First Quarter Financial Results Conference Call. However, a deal will not be announced at that time.
-ti- A catalyst could also come in the form of royalties paid by Purdue based on the sales of Intermezzo. In our conversation, Mr. Patterson said that he believed that it was last reported that about 2,000 scripts per week were being written. The company will most likely have some updates regarding the number of scripts being written on the May 8, 2013 conference call.
-4- What is TSPT's quarterly cash burn?
-g- Total Operating Expenses were:
$21,454,000 in 2012,
$23,458,000 in 2011, and
$21,722,000 in 2010.
-ti- The figures reported in -g- above are an accurate account for accounting purposes. However, there are non-cash items like stock-options that cut the number by about $3,000,000.
-h- According to TSPT's 10-K dated March 12, 2013, the company believes it has sufficient capital resources to fund operations for at least 12 months.
-ti- QUESTION: “Would it be fair to say that with the termination of the TSPT's clinical trial in December [and the subsequent [29%] reduction in work force], TSPT actually has enough cash to fund operations beyond what the company has stated? ANSWER: “Yea, I think it's fair to say... We publicly have said that on a historical bases our cash burn has been about a million and a half... So you can do the math...”
-5- Does TSPT have an existing line of credit and if so how much can they draw against it?
-ti- The company does not have an existing line of credit and carries no debt.
-6- Does TSPT have an At-The-Market (ATM) sales agreement?
-ti- TSPT renewed its shelf filing last week, (April 26, 2013) for up to $75,000,000. With it, an At-The-Market program was put in place that allows the company to sell up $20,000,000 in shares on the open market over a period of three years. At this time the company has no plans to utilize the shelf and/or ATM.
For additional information on the shelf filing, seehttp://ir.transcept.com/secfiling.cfm?filingID=1193125-13-177733.
SOURCES:
-a- TSPT website: http://www.transcept.com/component/option,com_frontpage/Itemid,1/
-b- TSPT website: http://www.myintermezzo.com/portal/f?p=myintermezzo:home:0
-c- Page 17, TSPT Form 10-K, fiscal year ending 12/31/2012http://ir.transcept.com/secfiling.cfm?filingID=1178711-13-12
-d- Page 3, TSPT Form 10-K, fiscal year ending 12/31/2012http://ir.transcept.com/secfiling.cfm?filingID=1178711-13-12
-e- TSPT PR http://ir.transcept.com/releasedetail.cfm?ReleaseID=667618
-f- Page 54, TSPT Form 10-K, fiscal year ending 12/31/2012http://ir.transcept.com/secfiling.cfm?filingID=1178711-13-12
-g- Page 39, TSPT Form 10-K, fiscal year ending 12/31/2012http://ir.transcept.com/secfiling.cfm?filingID=1178711-13-12
-h- Page 21, TSPT Form 10-K, fiscal year ending 12/31/2012http://ir.transcept.com/secfiling.cfm?filingID=1178711-13-12
-ti- Telephone interview on May 2, 2013 with Leone Patterson, TSPT CFO.