SAN MATEO, Calif., March 31, 2008 (PRIME NEWSWIRE) -- Pain Therapeutics, Inc. (Nasdaq:PTIE) announced today it has increased the size of its stock buyback plan to $30.0 million, effective immediately through March 2009. This represents a 50% increase from the Company's previously announced buyback plan. The Company has purchased over $18.0 million of its stock in the open market in the past twelve months.
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.
At December 31, 2007 the Company's cash, cash equivalents and marketable securities were approximately $205.0 million. Pain Therapeutics anticipates being cash flow positive in 2008. The Company anticipates spending $10.0 to $15.0 million developing its biopharmaceutical products for metastatic melanoma, hemophilia and other important disease areas in 2008.
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, Inc. is a biopharmaceutical company that develops novel drugs. In December 2007, we announced that Remoxy met the primary endpoint (p less than 0.01) of a pivotal Phase III study in over 400 patients with osteoarthritis; as a result, we plan to file an NDA for Remoxy in Q2 2008. We also have other drug candidates in clinical programs, including a novel radio-labeled monoclonal antibody to treat metastatic melanoma, PTI-202 and Oxytrex(tm). In addition, we are working on a new treatment for patients with hemophilia. The FDA has not yet evaluated the merits, safety or efficacy of our drug candidates. For more information, please visit www.paintrials.com.
Note Regarding Forward-Looking Statements: This press release contains forward-looking statements within the meaning 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, statements relating to the Company's ability to finance future growth while carrying out a stock buyback plan, the Company's plans to file an NDA with the FDA for Remoxy and the timing of such filing, the potential benefits of the Company's drug candidates, the Company's cash requirements for 2008 and the Company's expectation to become cash flow positive in 2008. 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, and in seeking regulatory approval 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, development, regulatory 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.