Synta Pharmaceuticals Reports Third Quarter 2009 Financial Results
In the third quarter, Synta recognized total revenue of
Total collaboration revenue, including revenue from the on-going
development agreement with
The Company reported net income of
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
"Our top two priorities over the coming months are advancing our Hsp90
program to clinical proof of concept and securing new partnership
agreements for one or more of our unpartnered assets - the Hsp90,
elesclomol, vascular disrupting agent, and IL-12/23 inhibitor programs,”
said
“We have expanded our Hsp90 program with a fourth clinical trial of STA-9090, a Phase 1/2 trial in hematologic malignancies at the once per week dosing schedule," continued Dr. Bahcall. “We have a growing portfolio of collaborations with leading investigators around the country to explore activity with STA-9090 in different tumor types, and have been pleased by the results from these collaborations and the interest they have generated in initiating multiple investigator-sponsored trials. These results and the encouraging signs we have seen to date in our ongoing trials – including single agent responses in patients who have failed multiple prior therapies; instances of prolonged stable disease; and a favorable safety profile – have helped us put together what we believe will be the leading Hsp90 program in the industry, with the goal of a dozen trials completed or ongoing by mid-2010.”
Synta also announced that pre-clinical results with STA-9090 will be
presented at the
“In addition to progress with STA-9090, we have been pleased by the pace of discussions with multiple potential partners for the different programs at Synta,” continued Dr. Bahcall. “We are optimistic we will secure one or more partnerships in the first half of 2010.”
This quarter Synta also continued to advance its CRACM and elesclomol
programs. “We are encouraged by recent results from our CRACM research
team and the close collaboration we have with
In October, Synta presented updated analyses of results from the Phase 3
trial of elesclomol in metastatic melanoma (SYMMETRY(SM)) at
the Perspectives in
Financial Guidance
Based upon our current operating plans, we continue to expect to end
2009 with approximately
Conference Call
Management will conduct a conference call at
The call also can 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. Condensed Consolidated Statements of Operations (in thousands, except share and per share amounts) (unaudited) |
||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Collaboration revenues: | ||||||||||||||||
License and milestone revenue (1) | $ | 117,171 | $ | 2,819 | $ | 124,558 | $ | 5,495 | ||||||||
Cost sharing reimbursements, net (1) |
13,234 |
(1,547 |
) |
15,007 |
(3,516 |
) |
||||||||||
Total collaboration revenues |
130,405 |
1,272 |
139,565 | 1,979 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | $ | 9,084 | $ | 24,058 | $ | 41,821 | $ | 58,550 | ||||||||
General and administrative | 3,149 | 3,665 | 10,224 | 11,272 | ||||||||||||
Restructuring |
- |
- |
1,236 |
- |
||||||||||||
Total operating expenses | 12,233 | 27,723 | 53,281 | 69,822 | ||||||||||||
Income (loss) from operations | 118,172 | (26,451 | ) | 86,284 | (67,843 | ) | ||||||||||
Other income: | ||||||||||||||||
Other income, net | (53 | ) | 130 | (159 | ) | 1,178 | ||||||||||
Net income (loss) | $ | 118,119 | $ | (26,321 | ) | $ | 86,125 | $ | (66,665 | ) | ||||||
Net income (loss) per common share: | ||||||||||||||||
Basic | $ | 3.49 | $ | (0.78 | ) | $ | 2.54 | $ | (1.98 | ) | ||||||
Diluted | $ | 3.48 | $ | (0.78 | ) | $ | 2.53 | $ | (1.98 | ) | ||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 33,882,760 | 33,736,510 | 33,877,340 | 33,733,436 | ||||||||||||
Diluted | 33,904,842 | 33,736,510 | 34,077,512 | 33,733,436 |
|
(1) |
In September 2009, upon the effectiveness of the termination of the GSK Agreement, the Company recognized approximately $114.6 million of remaining deferred license and milestone revenue from payments received under the GSK Agreement, all of which were recorded as license and milestone revenue as the Company has no further obligation for deliverables under the GSK Agreement. Also, the requirement to pay the cumulative GSK cost sharing reimbursements did not survive termination of the GSK Agreement and in September 2009, upon the effectiveness of the termination of the GSK Agreement, the Company reversed approximately $10 million of cost sharing reimbursement liabilities as cost sharing reimbursements revenue. |
Synta Pharmaceuticals Corp. Condensed Consolidated Balance Sheets Data (in thousands) (unaudited) |
|||||||
September 30, 2009 | December 31, 2008 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 51,745 | $ | 73,563 | |||
Collaboration receivable | - | 16,000 | |||||
Other current assets | 1,195 | 1,658 | |||||
Property, plant and equipment, net | 4,554 | 5,929 | |||||
Other non-current assets | 68 | 103 | |||||
Total assets | $ | 57,562 | $ | 97,253 | |||
Liabilities and Equity | |||||||
Current liabilities | $ | 17,759 | $ | 33,323 | |||
Long-term liabilities | 8,967 | 122,721 | |||||
Stockholders’ equity (deficit) | 30,836 | (58,791 | ) | ||||
Total liabilities and |
$ | 57,562 | $ | 97,253 |
Source:
Synta Pharmaceuticals Corp.
Rob Kloppenburg, 781-541-7125