LEXINGTON, Mass.--(BUSINESS WIRE)--May 7, 2009--
Synta Pharmaceuticals Corp. (NASDAQ: SNTA), a biopharmaceutical company
focused on discovering, developing, and commercializing small molecule
drugs to treat severe medical conditions, today reported financial
results for the quarter ended March 31, 2009.
In the first quarter of 2009, the Company recorded $4.5 million of net
collaboration revenues under its existing partnership agreement with
GlaxoSmithKline (GSK) and its new partnership agreement with Hoffman-La
Roche (Roche), which was entered into in December 2008. The Company
reported a net loss attributable to common stockholders of $23.5 million
or $0.69 per basic and diluted share for the first quarter in 2009,
compared to a net loss of $17.7 million, or $0.52 per basic and diluted
share for the same period in 2008.
Research and development (R&D) expenses were $22.6 million for the first
quarter in 2009 compared to $16.2 million for the same period in 2008.
General and administrative (G&A) expenses were $4.1 million for the
first quarter in 2009 compared to $3.6 million for the same period in
2008.
As of March 31, 2009, the Company had $84.8 million in cash, cash
equivalents, and marketable securities. This compares to $73.6 million
in cash, cash equivalents and marketable securities as of December 31,
2008.
In the first quarter of 2009, the Company achieved and was paid a $10
million non-refundable operational milestone payment under the
GSK Agreement related to the development of elesclomol for the treatment
of metastatic melanoma. The Company also received a $16 million
non-refundable upfront payment in connection with its agreement with
Roche for the CRACM inhibitor program.
More detailed financial information and analysis may be found in the
Company's Quarterly Report on Form 10-Q, which was filed with the
Securities and Exchange Commission on May 7, 2009.
Operational Highlights
“Synta is in a strong strategic position with approximately $85 million
in cash, a diversified pipeline of novel small molecule drug candidates,
two partnerships with major pharmaceutical companies that cover a
substantial majority of program costs, and a fully integrated discovery
engine with proprietary compound library that continues to create
additional growth opportunities,” said Safi Bahcall, Ph.D., President
and Chief Executive Officer of Synta. “We made important progress on a
number of fronts in this first quarter. We initiated a Phase 1/2,
twice-weekly dosing trial in hematologic cancers of STA-9090, our novel,
synthetic Hsp90 inhibitor that has shown substantial advantages compared
to the first generation, ansamycin (17-AAG) family, inhibitors. We are
also preparing to launch a once-weekly Phase 1/2 trial in hematologic
cancers in the second half of the year. In addition, we continued to see
strong interest from investigators for initiating new trials with
STA-9090 and expect to launch a number of new Phase 2 trials in solid
tumor indications by the end of the year. More details will be provided
closer to trial initiation.”
In April, Synta presented pre-clinical data on STA-9090 at the American
Association of Cancer Research meeting, which demonstrated improved
potency of STA-9090 compared to other compounds in the Hsp90 inhibitor
class and potent activity in multiple lung cancer models, including
those resistant to treatment with erlotinib (Tarceva®). In
addition, STA-9090 showed potent activity in lung cancer models that are
resistant to treatment with 17-AAG.
Synta is completing enrollment of the Phase 2a clinical trial of
apilimod, a novel, oral inhibitor of IL-12/IL-23, in rheumatoid
arthritis (RA) with preliminary data expected by the fourth quarter of
2009. Apilimod is currently being tested at a higher dose following
promising signs of biological and clinical activity at a lower dose
level in RA patients.
Synta also continued to develop its earlier stage compounds in the first
quarter, including advancing the CRACM program, which is partnered with
Roche, with a goal of initiating Phase 1 clinical development in 2010.
SYMMETRY Update
Synta, together with its partner for elesclomol, GlaxoSmithKline (GSK),
continued collecting data and analyzing the results of the Phase 3
SYMMETRYSM trial of elesclomol in combination with paclitaxel
in metastatic melanoma, which was suspended in February 2009 after a
meeting of an independent Data Monitoring Committee (DMC).
"As more data have been collected and analyzed, we have not identified
any specific target organ toxicities or adverse events related to
elesclomol which might explain the previously reported interim analysis
observation of an imbalance of deaths between the two arms in the
trial,” said Eric Jacobson, M.D., Chief Medical Officer, Synta. “We will
be presenting preliminary findings from the SYMMETRY trial at ASCO this
year.”
An oral presentation of results of the SYMMETRY data has been accepted
as a late-breaker at the Annual Meeting of the American Society of
Clinical Oncology (ASCO) taking place from May 29 to June 2, 2009. The
time and location of the presentation will be announced shortly.
Conference Call
Management will conduct a conference call at 10:00 a.m. (ET) this
morning to review the Company's first-quarter 2009 financial results.
The conference call will be webcast live over the Internet and can be
accessed by logging on to the "Investors" section of the Synta
Pharmaceuticals website, www.syntapharma.com,
prior to the event.
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 2:00 p.m. (ET)
today through midnight (ET) on May 14. To access the replay, dial (877)
660-6853 or (201) 612-7415 and refer to both account number 286 and
conference ID 319569. The webcast also will be archived on the Company's
website.
About Synta Pharmaceuticals
Synta Pharmaceuticals Corp. is a biopharmaceutical company focused on
discovering, developing, and commercializing small molecule drugs to
extend and enhance the lives of patients with severe medical conditions,
including cancer and chronic inflammatory diseases. Synta has a unique
chemical compound library, an integrated discovery engine, and a diverse
pipeline of clinical- and preclinical-stage drug candidates with
distinct mechanisms of action and novel chemical structures. All Synta
drug candidates were invented by Synta scientists using our compound
library and discovery capabilities. For more information, please visit www.syntapharma.com.
Safe Harbor Statement
This media release may contain forward-looking statements about Synta
Pharmaceuticals Corp. Such forward-looking statements can be identified
by the use of forward-looking terminology such as "will", "would",
"should", "expects", "anticipates", "intends", "plans", "believes",
"may", "estimates", "predicts", "projects", or similar expressions
intended to identify forward-looking statements. Such statements,
including statements relating to the timing, developments and progress
of our clinical and preclinical programs, reflect our current views with
respect to future events and are based on assumptions and subject to
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements, including those described in "Risk Factors" of our Form 10-K
for the year ended December 31, 2008 as filed with the Securities and
Exchange Commission. Synta undertakes no obligation to publicly update
forward-looking statements, whether because of new information, future
events or otherwise, except as required by law.
Synta Pharmaceuticals Corp.
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Condensed Consolidated Statements of Operations
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(in thousands, except share and per share amounts)
|
(unaudited)
|
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|
|
|
|
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|
|
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|
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|
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Three months ended
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March 31,
|
|
|
|
2009
|
|
|
2008
|
|
|
|
|
|
|
|
Collaboration revenues:
|
|
|
|
|
|
|
License and milestone revenue
|
|
|
$
|
4,073
|
|
|
|
$
|
1,338
|
|
Cost sharing reimbursements, net
|
|
|
|
437
|
|
|
|
|
-
|
|
Total collaboration revenues
|
|
|
|
4,510
|
|
|
|
|
1,338
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
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Research and development
|
|
|
$
|
22,639
|
|
|
|
$
|
16,150
|
|
General and administrative
|
|
|
|
4,070
|
|
|
|
|
3,633
|
|
Restructuring
|
|
|
|
1,236
|
|
|
|
|
-
|
|
Total operating expenses
|
|
|
|
27,945
|
|
|
|
|
19,783
|
|
Loss from operations
|
|
|
|
(23,435
|
)
|
|
|
|
(18,445
|
)
|
|
|
|
|
|
|
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Other income:
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|
|
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|
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Investment income, net
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|
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(64
|
)
|
|
|
|
795
|
|
Net loss
|
|
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$(23,499
|
)
|
|
|
$(17,650
|
)
|
|
|
|
|
|
|
|
Basic and diluted weighted average common shares outstanding
|
|
|
|
33,872,016
|
|
|
|
|
33,730,230
|
|
Basic and diluted net loss per share
|
|
|
$
|
(0.69
|
)
|
|
|
$
|
(0.52
|
)
|
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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March 31, 2009
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December 31, 2008
|
|
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Assets
|
|
|
|
|
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Cash and cash equivalents
|
|
|
$
|
84,753
|
|
|
|
$
|
73,563
|
|
Collaboration receivable
|
|
|
|
-
|
|
|
|
|
16,000
|
|
Other current assets
|
|
|
|
1,223
|
|
|
|
|
1,658
|
|
Property, plant and equipment, net
|
|
|
|
5,676
|
|
|
|
|
5,929
|
|
Other non-current assets
|
|
|
|
103
|
|
|
|
|
103
|
|
Total assets
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|
|
$91,755
|
|
|
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$97,253
|
|
|
|
|
|
|
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Liabilities and Equity
|
|
|
|
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Current liabilities
|
|
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$
|
42,951
|
|
|
|
$
|
33,323
|
|
Long-term liabilities
|
|
|
|
129,933
|
|
|
|
|
122,721
|
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Stockholders’ deficit
|
|
|
|
(81,129
|
)
|
|
|
|
(58,791
|
)
|
Total liabilities and stockholders’ deficit
|
|
|
$91,755
|
|
|
|
$97,253
|
|
Source: Synta Pharmaceuticals Corp.
Synta Pharmaceuticals Corp.
Rob Kloppenburg, 781-541-7125