Nov. 5, 2009 (PR Newswire) --
MOUNTAIN VIEW, Calif., Nov. 5 /PRNewswire-FirstCall/ -- MAP Pharmaceuticals, Inc. (Nasdaq: MAPP) today announced financial results for the third quarter ended September 30, 2009.
Net income for the quarter ended September 30, 2009 was $19.3 million, compared to a net loss of $20.4 million during the same period in 2008. Net income for the first nine months of 2009 was $4.4 million, compared to a net loss of $51.1 million during the same period in 2008. Net income for the three and nine months ended September 30, 2009 was impacted positively by the acceleration of the remaining unamortized deferred revenue, recognized upon the termination of the AstraZeneca AB license agreement in the third quarter of 2009. As of September 30, 2009, MAP Pharmaceuticals had cash, cash equivalents and accounts receivables of $78.9 million.
"In the third quarter, we added more than $30 million to our balance sheet through a public offering and continued to move our LEVADEX(TM) product candidate toward an NDA submission. We also presented new analysis of data from our Phase 3 LEVADEX clinical trial at the late-breaking session of the 14th Congress of the International Headache Society showing the potential of LEVADEX to treat a broad spectrum of migraine subpopulations that are often difficult to treat with current therapies, including triptans. For example, in this trial, patients with allodynia, menstrual migraine, migraine with nausea and vomiting, severe migraine and those treating late in their migraine cycle responded well to our therapy," said Timothy S. Nelson, President and Chief Executive Officer of MAP Pharmaceuticals. "We believe that LEVADEX has the potential to provide rapid and sustained relief of migraine symptoms to many of the approximately 30 million migraine sufferers in the U.S., including many who are not helped by currently available migraine therapies. We look forward to initiating our confirmatory Phase 3 trial with LEVADEX in the first quarter of next year."
Third Quarter and Nine Month Financial Results
Revenues for the quarter and nine months ended September 30, 2009 were $35.3 million and $51.4 million, respectively, compared to $0 for the same periods in 2008. Revenue to date in 2009 was due to a $40.0 million upfront payment received in February 2009 and reimbursements of development expenses for Unit Dose Budesonide (UDB), the company's nebulized pediatric asthma product candidate, pursuant to MAP Pharmaceuticals' license agreement with AstraZeneca. On July 8, 2009, the company received notice from AstraZeneca of the termination of the license agreement. As a result, the remaining unamortized deferred revenue of $33.1 million was recognized as collaboration revenue in the third quarter of fiscal 2009.
Research and development expenses for the quarter and nine months ended September 30, 2009 were $11.9 million and $35.6 million, respectively, compared to $16.8 million and $41.6 million, respectively, for the same periods in 2008. For the three months ended September 30, 2009 compared to the same period in 2008, the decrease in research and development expenses was driven primarily by decreases in clinical and other related expenses to support both the LEVADEX and UDB Phase 3 clinical programs. During the third quarter of 2009, the company suspended development of its UDB product candidate. As a result, wind-down costs and writedown of fixed asset charges of approximately $2.8 million were recorded, and are included in the $11.9 million in research and development expenses for the third quarter of 2009. For the nine months ended September 30, 2009 compared to the same period in 2008, the decrease in research and development expenses was driven primarily by a decrease in clinical and other related expenses to support the UDB Phase 3 clinical program, partially offset by an increase in clinical and other related expenses to support the LEVADEX Phase 3 clinical program and an increase in personnel related expenses.
