Pain Therapeutics in the black with second-quarter net income of $1.4 million

By Angela McDaniels

Seattle, Aug. 9 - Pain Therapeutics, Inc. said its net income rose to $1.4 million, or $0.03 per share, for the second quarter ended June 30 from a net loss of $10.2 million, or $0.23 per share, for the second quarter of 2005.

For the first six months of the year, the company's net income grew to $2.2 million, or $0.05 per share, from a net loss of $18.8 million, or $0.43, for the same period of 2005.

Pain Therapeutics recently received a $5 million milestone payment from King Pharmaceuticals, Inc., its worldwide strategic partner for Remoxy, PTI-202 and two other abuse-resistant opioids painkillers, according to a company news release.

This payment is in addition to an upfront cash payment of $150 million the company received from King Pharmaceuticals in December 2005. Pain Therapeutics said it plans to recognize a portion of this cash payment each quarter through mid 2011. The company recognized $6.6 million of the payment this quarter.

Research and development expenses increased to $10.2 million for the second quarter and $23 million for the first half of the year from $9.5 million and $17.6 million for the same periods of 2005, respectively.

The company attributed the increase to the timing of phase 3 clinical trials for Remoxy and increases in development activities with Remoxy and other abuse-resistant product candidates as well as increases in non-cash stock-related compensation costs associated with the adoption of the Financial Accounting Standards Board's share-based payment rule, or FAS 123R.

Cash, cash equivalents and marketable securities were $205.3 million at June 30, according to the release. The company said it expects its cash requirements for 2006 will be roughly $15 million.

"We believe we're in strong financial shape," president and chief executive officer Remi Barbier said in the release.

"[W]e continue to uncover attractive and affordable potential in-licensing opportunities from top academic labs in the areas of pain management and hematology/oncology."

Pain Therapeutics is a biopharmaceutical company located in South San Francisco, Calif.

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