Small molecule drug developer Synta Pharmaceuticals Corp. (SNTA) Thursday reported a lower loss for the fourth quarter, helped by a one-time acceleration of deferred revenue related to a former partnership agreement.
Lexington, Massachusetts-based Synta Pharma's net loss for the quarter narrowed to $7.04 million or $0.21 per share from $25.95 million or $0.77 per share in the same quarter a year ago.
On average, four analysts polled by Thomson Reuters expected a loss of $0.25 per share for the quarter. Analysts' estimate typically excludes one-time items.
Synta recognized total collaboration revenue of $4.68 million, higher than $0.64 million in the prior-year quarter and better than Street expectation of $4.13 million.
Revenues rose helped by a one-time acceleration of around $114.6 million of deferred revenue from upfront payments and milestones received under the GSK Agreement, which was terminated effective September 2009.
Research and development expenses were $9.23 million, down compared to $23.03 million in the year-earlier quarter. Total operating expenses were $11.66 million, compared to $25.87 million in the prior-year quarter.
Loss from operations was $6.98 million, compared to loss of $25.87 million in the corresponding quarter last year.
As of December 31, 2009, the company had $44.2 million in cash and cash equivalents and also raised $26.7 million of net proceeds from the sale of its common stock in an underwritten public offering in January 2010. This compares to $73.6 million in cash, cash equivalents and marketable securities as of December 31, 2008.
For the full year 2009, net profit was $79.09 million or $2.32 per share, compared to a loss of $92.62 million or $2.75 per share a year ago. Total collaboration revenue was $144.25 million, including the one-time acceleration of deffered revenue, compared to $2.62 million in the prior year. Street analysts' expected earnings of $2.23 per share on revenues of $143.02 million for the year.
"Our primary goals for 2010 are focused on advancing the clinical development of STA-9090: reporting initial data from each of our six ongoing trials, initiating six to ten new trials, and enabling the initiation of one or more pivotal studies for STA-9090 next year," said Safi Bahcall, Ph.D., President and Chief Executive Officer of Synta.
STA-9090 is a HSP90 inhibitor under development by the company currently in Phase 2 clinical study in patients with advanced gastrointestinal stromal tumors.
SNTA closed Wednesday's regular trading at $4.53, down $0.07, on a volume of 0.21 million shares.
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