SOUTH SAN FRANCISCO, Calif., March 29 /PRNewswire-FirstCall/ -- Pain Therapeutics, Inc. announced today that its Board of Directors has authorized the purchase of up to $20 million of its common stock in the open market.
"We believe our financial situation enables us to implement a stock buyback while continuing to finance future growth," said Remi Barbier, president and chief executive officer. "We have high hopes for the pipeline and future prospects of Pain Therapeutics."
The number of shares to be purchased and the timing of purchases will be based on several factors, including the price of the common stock, general market conditions, corporate and regulatory requirements and alternate investment opportunities. Pain Therapeutics intends to hold the repurchased shares in treasury for future use. This stock buyback plan expires March 2008 and may be discontinued at any time.
At December 31, 2006 the Company's cash, cash requirements and marketable securities were $204.4 million. Pain Therapeutics continues to expect its net cash requirements for 2007 to be approximately $10 million.
About Stock Buyback Plans
A stock buyback plan, also known as a "share repurchase plan," describes a company using its own cash to buy back shares from the marketplace. Repurchased shares are held by the company as treasury stock, and the number of shares outstanding is reduced by that number of shares repurchased. When this happens, the relative ownership stake of each investor increases because there are fewer total shares outstanding of the company.
About Pain Therapeutics, Inc.
Pain Therapeutics is a biopharmaceutical company that develops novel drugs for pain management and hematology/oncology. We have three investigational drug candidates in clinical programs. Remoxy(TM) and PTI-202 are proprietary, abuse-resistant forms of opioid drugs. Oxytrex(TM) is a novel, next-generation painkiller that potentially offers less physical dependence than currently marketed opioid painkillers. We are also developing a novel radio-labeled monoclonal antibody to treat metastatic melanoma, a rare but deadly form of skin cancer. The FDA has not yet evaluated the merits, safety or efficacy of our drug candidates. For more information, please visit our website at http://www.paintrials.com.
Note Regarding Forward-Looking Statements: This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the "Act"). Pain Therapeutics disclaims any intent or obligation to update these forward-looking statements, and claims the protection of the Safe Harbor for forward-looking statements contained in the Act. Examples of such statements include, but are not limited to, any statements relating to the Company's ability to finance future growth while carrying out a stock buyback plan, the potential benefits of the Company's drug candidates, the Company's confidence in its pipeline and future prospects and the Company's net cash requirements for 2007. Such statements are based on management's current expectations, but actual results may differ materially due to various factors. Such statements involve risks and uncertainties, including, but not limited to, those risks and uncertainties relating to difficulties or delays in development and testing of the Company's drug candidates, unexpected adverse side effects or inadequate therapeutic efficacy of the Company's drug candidates (including the risk that current and past results of clinical trials are not necessarily indicative of future results of clinical trials), the uncertainty of patent protection for the Company's intellectual property or trade secrets and unanticipated research and development and other costs. For further information regarding these and other risks related to the Company's business, investors should consult the Company's filings with the Securities and Exchange Commission.
Pain Therapeutics, Inc.CONTACT: Christi Waarich, Senior Manager of Investor Relations of PainTherapeutics, Inc., +1-650-825-3324, cwaarich@paintrials.com; or CarneyNoensie (Media) of Burns McClellan, +1-212-213-0006, for Pain Therapeutics,Inc.
Web site: http://www.paintrials.com//
