POTP Point Therapeutics (MM)

Point Therapeutics, Inc. (NASDAQ: POTP) today reported financial results for the fourth quarter and fiscal year ended December 31, 2006. Point reported a net loss of $6,337,000 or $0.19 per share in the fourth quarter of 2006, compared with a net loss of $5,899,000, or $0.22 per share, in the fourth quarter of 2005. For fiscal year 2006, Point reported a net loss of $29,365,000 or $0.90 per share compared with a net loss of $22,674,000 or $0.98 per share for fiscal year 2005. Revenues decreased to $80,000 in the fourth quarter of 2006 from $161,000 in the fourth quarter of 2005 and increased to $439,000 in fiscal year 2006 as compared to $161,000 in fiscal year 2005. Revenue in all periods relates to the Company�s $600,000 Orphan Products Development Grant which funded a portion of Point�s current Phase 2 study combining talabostat with rituximab in advanced chronic lymphocytic leukemia (CLL). Research and development expenses increased to $5,047,000 in the fourth quarter of 2006 from $4,996,000 in the fourth quarter of 2005 and increased to $24,031,000 in fiscal year 2006 from $18,246,000 in fiscal year 2005. The increase in research and development costs for both the quarter and fiscal year resulted primarily from higher clinical and related costs for the Company�s two Phase 3 clinical trials offset in part by savings in manufacturing and preclinical testing costs as compared to the prior year. In addition, non-cash stock-based compensation for employee options in accordance with SFAS No. 123R contributed to the increase. General and administrative expenses increased to $1,539,000 in the fourth quarter of 2006 from $1,282,000 in the fourth quarter of 2005. General and administrative expenses increased to $6,826,000 in fiscal year 2006 from $5,195,000 in fiscal year 2005. The increase in general and administrative expenses for both the quarter and fiscal year resulted primarily from non-cash stock-based compensation for employee and director stock options in accordance with SFAS No. 123R expenses, and increased expenses related to business development initiatives. Interest income was $169,000 in the fourth quarter of 2006 compared to $217,000 in the fourth quarter of 2005. The decrease in interest income was due to a lower average cash balance as compared to prior year. Interest income was $1,053,000 in fiscal year 2006 as compared to $606,000 in fiscal year 2005. The increase in fiscal year 2006 interest income was due to a higher average cash balance and higher interest rates earned on investments. Point�s cash and restricted cash balance as of December 31, 2006 was $10,098,000. In February 2007, Point raised $4,409,000 in net proceeds relating to the sale of 6,524,000 shares of common stock in a registered direct offering. Point�s Form 10-K, which provides a detailed update on the Company�s business strategy, clinical programs and financials, was filed with the Securities and Exchange Commission today and can be accessed on the Company�s Web site at www.pther.com in the Investor Relations section, under SEC Filings. About Point Therapeutics, Inc.: Point is a Boston-based biopharmaceutical company which is currently studying its lead product candidate, talabostat, in two Phase 3 double blind, placebo-controlled trials in metastatic non-small cell lung cancer (NSCLC) and in a Phase 2 trial in combination with gemcitabine in metastatic pancreatic cancer. Point has also studied talabostat in several Phase 2 trials, including as a single-agent in metastatic melanoma, in combination with cisplatin in metastatic melanoma, in combination with rituximab in advanced chronic lymphocytic leukemia, and in combination with docetaxel in metastatic NSCLC. Certain statements contained herein are not strictly historical and are "forward looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts, and can be identified by, among other things, the use of forward-looking language, such as "believes," "feels," "expects," "may," "will," "projects," "should," "seeks," "plans," "schedules to," "anticipates" or "intends" or the negative of those terms, or other variations of those terms of comparable language, or by discussions of strategy or intentions. A number of important factors could cause actual results to differ materially from those projected or suggested in the forward looking statements due to risks and uncertainties to which the Company is subject, and other factors that are described in Form 10-K filed with the Securities and Exchange Commission on March 16, 2007, and from time to time in Point's other reports filed with the Securities and Exchange Commission. POINT THERAPEUTICS, INC. (A Development Stage Company) CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Period from Three months ended December 31, Twelve months ended December 31, September 3, 1996 (date of inception) through Dec. 31, 2006� 2005� 2006� 2005� 2006� REVENUES License revenue $ -� $ -� $ -� $ -� $ 5,115,041� Sponsored research revenue 79,593� 161,205� 438,795� 161,205� 3,000,000� Total revenues 79,593� 161,205� 438,795� 161,205� 8,115,041� � � OPERATING EXPENSES Research and development 5,046,656� 4,995,756� 24,030,682� 18,246,263� 74,500,340� General and administrative 1,539,035� 1,281,951� 6,825,955� 5,195,031� 28,063,762� Total operating expenses 6,585,691� 6,277,707� 30,856,637� 23,441,294� 102,564,102� � Net loss from operations (6,506,098) (6,116,502) (30,417,842) (23,280,089) (94,449,061) � Interest income 169,021� 217,066� 1,052,645� 606,140� 2,798,137� Interest expense -� -� -� -� (82,652) Net loss $ (6,337,077) $ (5,899,436) $ (29,365,197) $ (22,673,949) $ (91,733,576) � Basic and diluted net loss per common share $ (0.19) $ (0.22) $ (0.90) $ (0.98) Basic and diluted weighted average common shares outstanding � � 32,768,950� � � 26,863,309� � � 32,762,925� � � 23,075,434� POINT THERAPEUTICS, INC. (A Development Stage Company) CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) December 31, 2006 December 31, 2005 ASSETS Cash, cash equivalents and restricted cash $ 10,097,930� $ 37,634,230� Property and equipment, net 238,395� 344,432� Other assets 2,231,459� 2,421,937� � Total assets $ 12,567,784� $ 40,400,599� � � � LIABILITIES AND STOCKHOLDERS� EQUITY Current liabilities $ 4,579,836� $ 5,954,544� Other liabilities 36,601� 47,087� Total stockholders' equity 7,951,347� 34,398,968� � Total liabilities and stockholders' equity $ 12,567,784� $ 40,400,599�