MAP Pharmaceuticals first quarter net loss increases to $17.8 million

MAP Pharmaceuticals, Inc. (Nasdaq: MAPP) today announced financial results for the first quarter ended March 31, 2012.

The net loss for the first quarter ended March 31, 2012 was $17.8 million, compared to a net loss of $16.0 million during the same period in 2011. The net loss for the first quarter ended March 31, 2012 included a one-time expense of $2.8 million for the purchase of a data package relating to the propellant used for LEVADEX. MAP Pharmaceuticals had $79.0 million in cash and cash equivalents as of March 31, 2012, compared to $98.8 million as of December 31, 2011.

"Following receipt of the Complete Response letter from the FDA on March 26 for our LEVADEX NDA submission, we will meet with the FDA in the second quarter of this year and we look forward to gaining clarity around the issues raised in the letter," said Timothy S. Nelson, president and chief executive officer of MAP Pharmaceuticals. "We believe that LEVADEX has the potential to be an important treatment for many of the 30 million Americans who suffer from migraine, and we will continue to closely collaborate with the FDA to address the issues raised in the Complete Response letter as quickly as possible."

Revenues for the first quarter ended March 31, 2012 were $1.0 million, compared to $0.6 million for the same period in 2011. The revenues for both periods were due to amortization of a $60.0 million nonrefundable upfront cash payment received in February 2011, pursuant to a collaboration agreement with Allergan, Inc. entered into in January 2011.

Research and development (R&D) expenses for the first quarter ended March 31, 2012 were $11.0 million, compared to $11.6 million for the same period in 2011. The decrease in R&D expenses for the three months ended March 31, 2012 was caused primarily by a decrease in expenses related to the LEVADEX program, that was partially offset by a one-time $2.8 million expense to purchase a data package relating to the propellant used for LEVADEX, an increase in expenses related to earlier stage research projects and an increase in personnel related expenses.

Sales, general and administrative (SG&A) expenses for the first quarter ended March 31, 2012 were $7.9 million, compared to $4.8 million for the same period in 2011. The increase in SG&A expenses was related primarily to an increase in personnel related expenses primarily within sales and marketing, and an increase in professional services, including activities in preparation for a potential launch of LEVADEX.

For the first quarter ended March 31, 2012, non-cash stock-based compensation and depreciation was approximately $2.7 million.

2012 Financial Outlook

MAP Pharmaceuticals' financial outlook is based on current expectations. The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under "Forward-Looking Statements."

The Company currently anticipates operating expenses for the remainder of 2012, excluding non-cash charges such as stock-based compensation and depreciation, to be approximately $35 to $37 million.  Not included in this financial outlook are potential incremental launch costs which will be determined once the Company has clarity around the Complete Response letter.  Collaboration revenues are estimated to be approximately $2.6 million for the remainder of 2012.