Durata Therapeutics, Inc. Reports Second Quarter 2013 Financial Results

Durata Therapeutics, Inc. Logo

CHICAGO, Aug. 7, 2013 (GLOBE NEWSWIRE) -- Durata Therapeutics, Inc. (Nasdaq:DRTX) today announced financial results for the quarter ended June 30, 2013.

Q2 2013 Highlights and Recent Events

Accomplishments include the following:

  • Completed an equity offering in April, resulting in approximately $54.1 million of net proceeds before deducting costs payable by us
  • Presented new data demonstrating in vitro potency of dalbavancin against bacterial pathogens at the 23rd Annual ECCMID Meeting
  • Elected Paul A. Friedman, M.D. to the Board of Directors
  • Concluded pre-New Drug Application ("NDA") clinical and CMC meetings with the Food and Drug Administration ("FDA")
  • Confirmed process and timeline for NDA submission with the FDA

"We are pleased to reaffirm the timing of the submission of both the NDA and the Marketing Authorization Application ("MAA")," said Paul Edick, Chief Executive Officer of Durata Therapeutics, Inc. "Based on discussions with the FDA, including pre-NDA meetings in which both clinical and manufacturing data were discussed, we intend to submit to the FDA our initial NDA submission in late September. The MAA submission also remains on track to file with the European Medicines Agency ("EMA") by year-end." Mr. Edick continued, "Our cash position following our $54 million equity raise remains strong and will enable us to successfully launch dalbavancin in the U.S. in the second half of 2014."

Financial results for the quarter ended June 30, 2013

As of June 30, 2013, we had cash and cash equivalents plus short-term investments of $83.5 million, compared to $45.4 million at December 31, 2012. The increase was primarily due to the Company's equity offering in the second quarter.

Net loss for the three months ended June 30, 2013 (the "2013 Quarter") was $18.8 million, compared to a net loss of $19.2 million for the three months ended June 30, 2012 (the "2012 Quarter").

Research and development expenses for the 2013 Quarter were $13.2 million, compared to $16.5 million for the 2012 Quarter. The $3.3 million decrease from the 2012 Quarter to the 2013 Quarter principally resulted from a decrease of $7.6 million related to clinical related trial costs as a result of completing our DISCOVER 1 and DISCOVER 2 clinical trials partially offset by an increase of $3.6 million related to chemistry, manufacturing and control ("CMC") related expenses for the production of active pharmaceutical ingredient ("API") for future, potential commercial sale and a $0.5 million increase in costs related to the preparation of the final study report and NDA submission.

General and administrative expense for the 2013 Quarter was $4.5 million, compared to $2.4 million for the 2012 Quarter. The $2.1 million increase from the 2012 Quarter to the 2013 Quarter principally resulted from an increase of $1.8 million for personnel costs and an increase of $0.3 million for insurance and other operating expenses to support our pre-launch activities and increased public company compliance requirements.

Conference Call and Webcast Information

The company will host a conference call today, August 7, 2013 at 8:30 AM EDT. To access the call, please dial 866-632-4021 for participants in the U.S. or Canada and 404-991-3968 for international callers (reference Conference ID 12148199). A replay of the call may be accessed through August 21, 2013 by dialing 800-585-8367 for callers in the U.S. and Canada and 404-537-3406 for international callers (reference Conference ID12148199). The conference call will also be webcast live on the Investor Relations section of the Company's website at www.duratatherapeutics.com.

About Dalbavancin

Dalbavancin is an intravenous antibiotic product candidate under investigation for once-weekly dosing, which we believe may facilitate the treatment of patients with ABSSSI in both the in-patient and out-patient settings, potentially reducing the length of a patient's hospital stay or avoiding hospital admission altogether, with an impact on the overall cost of care for these patients.

About Durata Therapeutics

Durata Therapeutics is a pharmaceutical company focused on the development and commercialization of novel therapeutics for patients with infectious diseases and acute illnesses. Durata has completed two global Phase 3 clinical trials with its lead product candidate, dalbavancin, under investigation for the treatment of patients with acute bacterial skin and skin structure infections caused by susceptible gram-positive bacteria.

Forward-looking statements

Statements contained in this press release contain forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this press release, including statements regarding our strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management, are forward-looking statements. The words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "target," "potential," "will," "would," "could," "should," "continue," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

Forward-looking statements in this press release include statements about the timing of the filing of a NDA with the FDA and the timing of the filing of a MAA with the EMA, the potential commercialization of dalbavancin and the sufficiency of our cash reserves. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the "Risk Factors" section of our most recent quarterly report on Form 10-Q, which is on file with the SEC and is also available on our website. In addition, any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. While we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our views change. Therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to today.

(A Development Stage Company)
Consolidated Balance Sheet
(in thousands)
Assets June 30, 2013 December 31, 2012
Current assets:
Cash and cash equivalents $ 61,384 $ 32,257
Short-term investments 22,095 13,094
Prepaid expenses and other current assets 1,857 5,844
Total current assets 85,336 51,195
Acquired in process research and development 15,292 15,292
Goodwill 5,811 5,811
Property and equipment, net 1,009 981
Restricted cash 1,145 852
Deferred charge 11,235 12,417
Other assets 576
Total assets $ 120,404 $ 86,548
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 5,228 $ 8,618
Accrued expenses 8,597 10,602
Current portion of long-term debt 1,205
Income taxes payable 2,281
Total current liabilities 15,030 21,501
Long-term debt (less unamortized debt discount of $1,443 at June 30, 2013) 17,352
Non-current income tax payable 1,412 1,117
Contingent consideration 20,409 19,836
Accrued interest liability 1,190
Other liabilities 318 222
Total liabilities 55,711 42,676
Total stockholders' equity 64,693 43,872
Total liabilities and stockholders' equity $ 120,404 $ 86,548
(A Development Stage Company)
Consolidated Statement of Operations
(in thousands, except share and per share data)
Period from
(November 4,
Three month period ended Six month period ended 2009) to
June 30, June 30, June 30,
2013 2012 2013 2012 2013
Operating expenses:
Research and development expenses $ 13,179 $ 16,528 $ 24,271 $ 23,299 $ 111,115
General and administrative expenses 4,514 2,392 8,565 3,613 26,347
Acquisition related charges, net 289 272 573 540 9,117
Operating loss 17,982 19,192 33,409 27,452 146,579
Other (income) expense
Interest expense 654 -- 762 -- 762
Interest income (11) (4) (26) (7) (85)
Total other (income) expense 643 (4) 736 (7) 677
Loss before income tax expense (benefit) 18,625 19,188 34,145 27,445 147,256
Income tax expense (benefit) 210 -- 458 -- (5,353)
Net loss $ (18,835) $ (19,188) $ (34,603) $ (27,445) $ (141,903)
Net loss per common share – Basic and Diluted $ (0.75) $ (260.25) $ (1.59) $ (402.94)
Weighted average common shares – Basic and Diluted 25,169,543 73,727 21,787,331 68,113

CONTACT: Investor Relations and Public Affairs Contact Allison Wey Durata Therapeutics, Inc. Vice President, Investor Relations and Public Affairs (312) 219-7017 awey@duratatherapeutics.com

Source:Durata Therapeutics, Inc.