Redpoint Bio announces revenue of $1.9M for full-year 2009

Mar 29 2010

Redpoint Bio Corporation (OTCBB: RPBC), a company focused on the development of healthier foods and beverages and new approaches to the treatment of diabetes and obesity, today announced financial and operational results for the quarter and year ended December 31, 2009.

“These advances have greatly encouraged our team, particularly after we restructured early in 2009 to reduce our cash burn.”

Fourth Quarter and Full Year 2009 Financial Results

For the quarter and year ended December 31, 2009, Redpoint recorded no revenue and revenue of $1.9 million, respectively. The revenues for the year ended December 31, 2009 were generated primarily from the Company's collaboration with Givaudan. As previously announced, Givaudan terminated its collaboration with the Company effective May 1, 2009. For the quarter and year ended December 31, 2008, Redpoint reported revenue of $1.0 million and $4.0 million, respectively.

Research and development expenses for the fourth quarter of 2009 were $1.0 million, compared to $2.1 million for the fourth quarter of 2008. Research and development expenses for the year ended December 31, 2009 were $5.6 million, compared to $8.6 million for the year ended December 31, 2008. The decrease in expenses was primarily attributable to the reductions in staff that the Company announced in February and May 2009.

Redpoint reported a net loss for the fourth quarter of 2009 of $1.8 million, or $0.02 per share, compared to $1.8 million, or $0.02 per share, for the fourth quarter of 2008.

The net loss for the year ended December 31, 2009 was $8.8 million, or $0.11 per share, compared to $9.5 million, or $0.12 per share, for the year ended December 31, 2008.

Liquidity

Redpoint held cash and cash equivalents of $5.6 million at December 31, 2009. The Company believes that its current capital resources are sufficient to meet its operating and capital requirements through November 2010.

2009 Highlights and Recent Corporate Developments

-- Taste research platform led to the discovery of RP44, a novel, all-natural sweetness enhancer that has the potential to be used in making healthier foods and beverage products.

-- Disclosed that RP44 is rebaudioside C (Reb-C), derived from the stevia plant.

-- Provided samples of RP44 to several ingredient suppliers and food and beverage companies for evaluation in their own taste labs.

-- Filed several patent applications for RP44.

-- Refocused synthetic compound program on the development of new therapeutics for diabetes and obesity that act through modulation of the TRPm5 ion channel.

-- Showed that its TRPm5-directed modulators can enhance the release of key hormones from intestinal chemosensory cells, including GLP1 which regulates glucose uptake and PYY, a hormone involved in satiety and appetite suppression.

-- Completed corporate restructurings in February and May of 2009 to reduce cash burn.

"During 2009 Redpoint made important advances in two related areas of taste biology, setting our course for a productive and exciting 2010. We were pleased to announce that our taste research platform led to the discovery of RP44, a novel, all-natural sweetness enhancer that has the potential to be used in making healthier food and beverage products. In addition, we leveraged our knowledge of taste signaling to work towards novel therapeutic approaches for diabetes and obesity, and have made exciting progress in this area," stated Ray Salemme, Ph.D., Chief Executive Officer of Redpoint. "These advances have greatly encouraged our team, particularly after we restructured early in 2009 to reduce our cash burn."

Dr. Salemme continued, "Our priorities for 2010 are to advance our all-natural sweetness enhancer, RP44, towards commercialization, and progressing our TRPm5 modulator program for the treatment of diabetes. We are actively seeking partners for these programs." Nonetheless, there can be no assurance that RP44 can be produced in large scale on an economically viable basis or that the Company will consummate collaborations with commercial partners.