Neurocrine Biosciences Inc. Q1 2010 Earnings Call Transcript

Neurocrine Biosciences Inc. Q1 2010 Earnings Call Transcript
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Wyndham Worldwide Corporation (NBIX)

Q1 2010 Earnings Call

April 29, 2010 8:30 a.m. ET

Executives

Jane Sorenson – IR

Kevin Gorman - President and CEO

Tim Coughlin - VP and CFO

Christopher O'Brien - CMO

Analysts

Craig Gordon - Cowen and Company

Jon Lecroy - Hapoalim Securities

Steven Willey - Thomas Weisel

Jason Napodano - Zacks Investment Research

Presentation

Operator

Good morning everyone, and welcome to today's program. (Operator Instructions) It's now my pleasure to turn the conference over to Kevin Gorman.

Kevin Gorman

Thank you very much, and good morning everyone. Thank you for joining us this morning.

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As usual, I'm joined here with Tim Coughlin, our CFO, and Chris O'Brien, our Chief Medical Officer. Before we get started, I'd like Jane Sorenson, in charge of Investor Relations to read our Safe Harbor Statement. Jane?

Jane Sorenson

Good morning. I want to remind you of Neurocrine's Safe Harbor cautions. Certain statements made in the course of this conference call that state the company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements, which are subject to risks and uncertainties. Information concerning factors that could cause actual results to differ materially from those contained in or implied by the forward-looking statements is contained in the company's SEC filings, including but not limited to the company's annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of these filings may be obtained by visiting the Investor Relations page on the company's website at www.neurocrine.com. Any forward-looking statements are made only as of today's date, and we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances. Kevin.

Kevin Gorman

Thank you, Jane. So what we're going to do this morning is, Tim will take you through our financials and then Chris will give you an update on our programs, just to start out. I hope that everyone had a chance to see our press release last night on the first quarter results. As you can see, from both a financial standpoint and from our clinical development standpoint, all of our programs are right on track, the numbers are as we have given guidance for at the beginning of the year.

So I look forward to your questions as soon as Tim and Chris are done speaking. Tim, do you want to start?

Tim Coughlin

Thank you, Kevin, and good afternoon, or morning to everyone, I should say.

We released our financial results yesterday after market close. We met our targeted burn from operations for the quarter of less than $12 million, as well as our budgeted revenue and expense items. Our loss for the quarter was $8.6 million or $0.19 per share. This compares to a loss of $19.7 million or $0.51 per share for the first quarter of last year.

The reduction in net loss is primarily due to a restructuring program implemented in the second quarter of last year, coupled with strong cost control measures across all functions within the company. This was slightly offset by an increase in external clinical development costs.

Research and development costs as well as general administrative costs were in line with our expectations for the first quarter and significantly lower than the prior year, primarily due to lower personnel related costs and across the board reductions in non-clinical related expenses.

We continue to invest in our Elagolix program, in particular the 901 Daisy Study. This study recently completed the eight-week placebo-controlled portion of the trial, and we are actively preparing for the end of Phase II meeting.

We're advancing our VMAT2 program in movement disorders, which recently commenced its second phase I trial in Canada. Additionally, we've been industrious in moving our other programs forward through joint ventures with academic or other researchers at little or no cost to Neurocrine.

Chris O'Brien, our Chief Medical Officer will speak to our clinical programs in greater detail later in the call.

In early March, we completed a public offering of approximately 10.5 million shares of common stock, yielding gross proceeds of approximately $23 million. This offering was very successful with a significant number of the new shares being placed with Blue Chip long-focused mutual funds.

For 2010, we reiterate that our operations burn will be approximately $40 million to $45 million exclusive of any partnering agreements. This burn includes all the activities related to our Elagolix and VMAT2 programs, as well as our base research programs. Our operations burns for the second quarter will drop to approximately $11 million, and additionally we plan to file our 10-Q with the SEC this morning.

Thank you for your attention. With that I'll turn it back over to Kevin.

Kevin Gorman

Thanks Tim. So Chris, do you want to give an update of each of the programs?

Chris O'Brien

Certainly. As you know, we have continued to focus all of our attention and resources on the Elagolix program. And as Tim mentioned, the 901 Daisy PETAL study has moved along nicely. This is a trial that we began the screening say since last September. We completed randomization in February, and we just recently had the last of the women enrolled in the study complete her week-8 visit, which is the (primary) placebo Elagolix comparison point.

The data is now being gathered by our field monitors, and the electronic data transfers are underway. We are still blinded to the data, but once the QA/QC process is done, we will be able to take a top-line look at the treatment group output, and we will report as soon as we have that available, the results of the trial.

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