Point Therapeutics Reports Fourth Quarter and Year-End 2006 Financial Results

  
    
  
  
    
      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