LEXINGTON, Mass.--(BUSINESS WIRE)--Nov. 4, 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 September 30, 2009.
In the third quarter, Synta recognized total revenue of $130.4 million,
of which $114.6 million was related to the acceleration of unrecognized
deferred license and milestone revenue in connection with the
termination of the agreement with GlaxoSmithKline for the development of
elesclomol. Upfront license and milestone payments from GSK were
previously being recognized over the estimated 15 year term of the
agreement.
Total collaboration revenue, including revenue from the on-going
development agreement with Roche, was $130.4 million in the third
quarter of 2009 compared to net revenue of $1.3 million for the same
period in 2008. Research and development expenses were $9.1 million for
the third quarter in 2009 compared to $24.1 million for the same period
in 2008. General and administrative expenses were $3.1 million for the
third quarter in 2009 compared to $3.7 million for the same period in
2008.
The Company reported net income of $118.1 million, or $3.49 per basic
share and $3.48 per diluted share, for the third quarter in 2009,
compared to a net loss of $26.3 million, or $0.78 per basic and diluted
share for the same period in 2008.
As of September 30, 2009, the Company had $51.7 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.
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 November 4, 2009.
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 Safi Bahcall, Ph.D., CEO of Synta. “We are making good progress on
both of these goals.”
“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 AACR-NCI-EORTC Conference on Molecular Targets and
Cancer Therapeutics on November 15-19, 2009.
“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 Roche on this program,”
continued Dr. Bahcall. The CRACM ion channel is a critical regulator of
immune cell activation. Drug candidates that modulate this pathway have
the potential to form a promising new category of orally administered
treatments for autoimmune diseases and other inflammatory conditions.
In October, Synta presented updated analyses of results from the Phase 3
trial of elesclomol in metastatic melanoma (SYMMETRY(SM)) at
the Perspectives in Melanoma XIII Conference, including survival data
with 6 months minimum follow-up. The data showed that baseline LDH
status may be a predictive factor for treatment with elesclomol. The
Company expects to present SYMMETRY survival data with 12 months minimum
follow-up, and announce further decisions related to the future of the
elesclomol program, in the first half of 2010. New results related to
the mechanism of action of elesclomol will be presented at the
AACR-NCI-EORTC Conference on Molecular Targets and Cancer Therapeutics
in November this year and the 51st American Society of
Hematology (ASH) Annual Meeting and Exposition in December.
Financial Guidance
Based upon our current operating plans, we continue to expect to end
2009 with approximately $40 million of cash, cash equivalents and
marketable securities. This estimate assumes no additional funds from
new partnership agreements or equity financing events.
Conference Call
Management will conduct a conference call at 10:00 a.m. (ET) this
morning to review the Company's third-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 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 2:00 p.m. (ET)
today through midnight (ET) on November 11. To access the replay, dial
(877) 660-6853 or (201) 612-7415 and refer to both account number 286
and conference ID 335119. 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, our expectation with respect
to entering into one or more partnerships, as well as the timing of any
such partnerships and the expected amount of our cash, cash equivalents
and marketable securities at the end of 2009 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.
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
Stockholders’ equity (deficit)
|
|
$
|
57,562
|
|
$
|
97,253
|
|
Source: Synta Pharmaceuticals Corp.
Synta Pharmaceuticals Corp.
Rob Kloppenburg, 781-541-7125
