Synta Pharmaceuticals Reports Second Quarter 2009 Financial Results
The Company reported a net loss attributable to common stockholders of
Collaboration revenue in the second quarter of 2009 was
As of
More detailed financial information and analysis may be found in the
Company's Quarterly Report on Form 10-Q, which was filed with the
Operational Highlights
“In the second quarter we focused on two near-term priorities: advancing
the clinical program for STA-9090, our Hsp90 inhibitor, and initiating
partnership discussions with the goal of concluding an agreement in the
next six to nine months,” said
Synta currently has three clinical trials of STA-9090 underway and expects to begin a once-weekly dosing trial in hematologic cancers shortly. Synta plans to initiate several additional company- and investigator-sponsored trials of STA-9090 in the second half of 2009 in order to rapidly explore the potential clinical role of STA-9090 in treating both solid and liquid tumors. Early clinical data could be presented at a scientific meeting as soon as late 2009.
In addition to making strong progress in advancing our STA-9090 clinical program, we have begun discussions with over 20 potential partners about multiple programs at the Company under a variety of different possible partnership structures," said Dr. Bahcall. "The combination of our current cash position, our current research partnership, and the high level of interest we are seeing in our unpartnered assets gives us confidence in both our near term and our long term financial and strategic outlook. We believe we will be able to maintain a strong balance sheet, execute a robust development program for STA-9090, and preserve substantial product rights, across our pipeline, for our shareholders.”
Synta continues to collect and analyze data from the Phase 3 trial of elesclomol in metastatic melanoma (SYMMETRYSM), including overall survival results. An independent scientific advisory panel will meet in the third quarter to review the data collected to date and provide initial recommendations to Synta on future development plans for elesclomol. Overall survival data from the trial is expected to mature in Q4 2009 or Q1 2010, after which a final analysis of the results will be conducted.
Financial Guidance
As a result of the implementation of cost-saving measures and based upon
our current operating plans, we expect to end 2009 with approximately
Conference Call
Management will conduct a conference call at
The call can also be accessed by dialing (877) 407-8035 or (201)
689-8035 prior to the start of the call. For those unable to join the
live conference call, a replay will be available from
About
Safe Harbor Statement
This media release may contain forward-looking statements about
Synta Pharmaceuticals Corp. |
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Condensed Consolidated Statements of Operations |
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(in thousands, except share and per share amounts) |
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(unaudited) |
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2009 | 2008 | 2009 | 2008 | |||||||||||||
Collaboration revenues: | ||||||||||||||||
License and milestone revenue | $ | 3,314 | $ | 1,338 | $ | 7,387 | $ | 2,676 | ||||||||
Cost sharing reimbursements, net | 1,336 | (1,969 | ) | 1,773 | (1,969 | ) | ||||||||||
Total collaboration revenues | 4,650 | (631 | ) | 9,160 | 707 | |||||||||||
Operating expenses: | ||||||||||||||||
Research and development | $ | 10,098 | $ | 18,342 | $ | 32,736 | $ | 34,492 | ||||||||
General and administrative | 3,005 | 3,974 | 7,076 | 7,607 | ||||||||||||
Restructuring | - | - | 1,236 | - | ||||||||||||
Total operating expenses | 13,103 | 22,316 | 41,048 | 42,099 | ||||||||||||
Loss from operations | (8,453 | ) | (22,947 | ) | (31,888 | ) | (41,392 | ) | ||||||||
Other income: | ||||||||||||||||
Other income, net | (42 | ) | 253 | (106 | ) | 1,048 | ||||||||||
Net loss | $ | (8,495 | ) | $ | (22,694 | ) | $ | (31,994 | ) | $ | (40,344 | ) | ||||
Basic and diluted weighted average common | ||||||||||||||||
shares outstanding | 33,877,075 | 33,733,536 | 33,874,559 | 33,731,883 | ||||||||||||
Basic and diluted net loss per share | $ | (0.25 | ) | $ | (0.67 | ) | $ | (0.94 | ) | $ | (1.20 | ) |
Synta Pharmaceuticals Corp. |
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Condensed Consolidated Balance Sheets Data |
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(in thousands) |
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(unaudited) |
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June 30, 2009 | December 31, 2008 | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 60,544 | $ | 73,563 | ||||
Collaboration receivable | 907 | 16,000 | ||||||
Other current assets | 1,556 | 1,658 | ||||||
Property, plant and equipment, net | 5,126 | 5,929 | ||||||
Other non-current assets | 68 | 103 | ||||||
Total assets | $ | 68,201 | $ | 97,253 | ||||
Liabilities and Equity | ||||||||
Current liabilities (1) | $ | 146,359 | $ | 33,323 | ||||
Long-term liabilities | 10,415 | 122,721 | ||||||
Stockholders’ deficit | (88,573 | ) | (58,791 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 68,201 | $ | 97,253 |
(1) | Includes approximately $116 million in deferred revenue from up-front payments and milestones received under the GSK Agreement, all of which will be recorded as non-cash license and milestone revenue upon the effectiveness of the termination of the GSK Agreement in the third quarter of 2009. |
Source:
Synta Pharmaceuticals Corp.
Rob Kloppenburg, 781-541-7125