MOUNTAIN VIEW, Calif.,
May 3, 2011 /PRNewswire/ -- MAP
Pharmaceuticals, Inc. (Nasdaq: MAPP) today announced financial
results for the first quarter ended March
31, 2011.
The net income for the first quarter ended March 31, 2011 was $17.6
million compared to a net loss of $14.1 million during the same period in 2010. Net
income for the first quarter ended March 31,
2011 was related primarily to the $34.2 million in collaboration revenue recognized
from a $60.0 million upfront payment
received in February 2011 pursuant to
a collaboration agreement with Allergan, Inc., compared to no
collaboration revenue for the first quarter ended March 31, 2010.
MAP Pharmaceuticals had $114.8
million in cash and cash equivalents as of March 31, 2011, compared to $76.0 million as of December 31, 2010.
"We began 2011 by securing a strategic collaboration with
Allergan for LEVADEX®, our investigational drug for the acute
treatment of migraine. The companies have been working closely
together as MAP Pharmaceuticals prepares to submit its New Drug
Application (NDA) to the U.S. Food and Drug Administration in the
first half of 2011, while also building infrastructure and strategy
for the launch and commercialization of LEVADEX, if approved," said
Timothy S. Nelson, president and
chief executive officer of MAP Pharmaceuticals. "In addition, we
continue to present scientific data on LEVADEX, most recently at
the 63rd Annual Meeting of the American Academy of Neurology. In
our pharmacodynamics study there was no difference in pulmonary
arterial systolic pressure between the LEVADEX and the placebo
group over two hours and in our pharmacokinetics study comparing
smokers vs. non-smokers, LEVADEX exposure was not higher in
smokers."
Revenues for the first quarter ended March 31, 2011 were $34.2
million compared to $0 for the same period in 2010. In
February 2011, pursuant to the
collaboration agreement, Allergan paid the Company an upfront
payment of $60.0 million,
$34.2 million of which was recognized
as collaboration revenue in the quarter ended March 31, 2011. The remaining $25.8 million is deferred revenue and will be
amortized as collaboration revenue over the estimated obligation
periods. Under the terms of the collaboration agreement, the
Company may also receive up to an additional $97.0 million in the form of regulatory
milestones, which includes milestones for acceptance of filing of
the LEVADEX NDA and first commercial sale associated with the
initial acute migraine indication.
Research and development (R&D) expenses for the first
quarter ended March 31, 2011 were
$11.6 million compared to
$9.8 million for the same period in
2010. The increase in R&D expenses for the first quarter ended
March 31, 2011 was driven primarily
by an increase in expenses related to the LEVADEX program,
including a milestone of $1.0 million
paid by the Company to a third party licensor as a result of
entering into the Allergan collaboration, and an increase in
personnel related expenses, including stock-based compensation.
Sales, general and administrative (SG&A) expenses for the
first quarter ended March 31, 2011
were $4.8 million compared to
$3.9 million for the same period in
2010. The increase in SG&A expenses was related primarily to
increases in personnel related expenses, including stock-based
compensation and professional services.
For the first quarter ended March 31,
2011, non-cash stock-based compensation and depreciation
expense was approximately $2.4
million.
2011 Financial Outlook
MAP Pharmaceuticals' financial outlook is based on current
expectations. The following statements are forward looking, and
actual results could differ materially depending on market
conditions and the factors set forth under "Forward-Looking
Statements."
The Company currently anticipates fiscal 2011 full year
operating expenses, excluding non-cash charges such as stock-based
compensation and depreciation, to be approximately $50 to $55 million. In addition, the Company
currently anticipates capital expenditures in 2011 to be
approximately $4 to $5 million. As
previously disclosed, the Company anticipates loan payments of
approximately $8 million in 2011
related to a working capital loan. Collaboration revenues are
estimated to be approximately $65
million in 2011. This estimate includes amortization of the
upfront payment received in February
2011 and a milestone payment that the Company would be
eligible to receive in 2011 under its collaboration agreement with
Allergan, if a certain milestone is met.
About MAP Pharmaceuticals
MAP Pharmaceuticals is an emerging biopharmaceutical company
focused on developing and commercializing new therapies to address
undermet patient needs in neurology. The Company is developing
LEVADEX, an orally inhaled investigational drug for the acute
treatment of migraine. The Company has reported positive results
from its Phase 3 trial of LEVADEX and has entered into a
collaboration agreement with Allergan, Inc. to co-promote LEVADEX
to neurologists and pain specialists in the U.S. MAP
Pharmaceuticals also applies its proprietary drug particle and
inhalation technologies to generate new pipeline opportunities by
enhancing the therapeutic benefits of proven drugs, while
minimizing risk by capitalizing on their known safety, efficacy and
commercialization history.
Additional information about MAP Pharmaceuticals can be found at
http://www.mappharma.com.
Forward-Looking Statements
In addition to statements of historical facts or statements of
current conditions, this press release contains forward-looking
statements, including with respect to MAP Pharmaceuticals' LEVADEX
product candidate and MAP Pharmaceuticals' expected cash
requirements during 2011 described above. Actual results may differ
materially from current expectations based on risks and
uncertainties affecting the Company's business, including, without
limitation, risks and uncertainties relating to the preparation and
filing of a New Drug Application, the regulatory process to have
the Company's LEVADEX product candidate approved for commercial
use, risks related to MAP Pharmaceuticals' future financial
results and the potential benefits from the collaboration between
MAP Pharmaceuticals and Allergan. The reader is cautioned not to
unduly rely on the forward-looking statements contained in this
press release. MAP Pharmaceuticals expressly disclaims any intent
or obligation to update these forward-looking statements, except as
required by law. Additional information on potential factors that
could affect MAP Pharmaceuticals' results and other risks and
uncertainties are detailed in its Annual Report on Form 10-K for
the year ended December 31, 2010,
available at http://edgar.sec.gov.
CONTACT: Christopher Y. Chai, Sr.
Vice President and Chief Financial Officer of MAP Pharmaceuticals,
Inc., (650) 386-3107; or media, Nicole
Foderaro of WCG, (415) 946-1058, nfoderaro@wcgworld.com.
MAP
PHARMACEUTICALS, INC.
|
|
(a
development stage enterprise)
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
114,847
|
|
|
$
|
76,007
|
|
Accounts
receivable
|
|
|
70
|
|
|
|
-
|
|
Other current
assets
|
|
|
682
|
|
|
|
644
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
115,599
|
|
|
|
76,651
|
|
Property and equipment,
net
|
|
|
5,806
|
|
|
|
5,803
|
|
Other assets
|
|
|
27
|
|
|
|
30
|
|
Restricted
investment
|
|
|
310
|
|
|
|
310
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
121,742
|
|
|
$
|
82,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
7,304
|
|
|
$
|
12,440
|
|
Debt
|
|
|
5,678
|
|
|
|
7,581
|
|
Current portion of
deferred revenue
|
|
|
14,400
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
27,382
|
|
|
|
20,021
|
|
Deferred revenue, less
current portion
|
|
|
11,439
|
|
|
|
-
|
|
Other
liabilities
|
|
|
81
|
|
|
|
117
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
38,902
|
|
|
|
20,138
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’
equity
|
|
|
82,840
|
|
|
|
62,656
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity
|
|
$
|
121,742
|
|
|
$
|
82,794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAP
PHARMACEUTICALS, INC.
|
|
(a
development stage enterprise)
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In
thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collaboration revenue
|
|
|
$
|
34,162
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
|
|
11,568
|
|
|
9,786
|
|
|
Sales, general and
administrative
|
|
|
|
4,843
|
|
|
3,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
|
16,411
|
|
|
13,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
|
17,751
|
|
|
(13,667)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense,
net
|
|
|
|
(147)
|
|
|
(391)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
17,604
|
|
$
|
(14,058)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.58
|
|
$
|
(0.54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
$
|
0.56
|
|
$
|
(0.54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding used in calculating net income (loss) per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
30,211
|
|
|
25,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
31,560
|
|
|
25,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE MAP Pharmaceuticals, Inc.