TRANZYME PHARMA (OUTPERFORM)(TZYM-NASDAQ)
BMO CAPITAL MARKETS: FLASH: 2Q12 RECAP HIGHLIGHTS PROGRESS IN DIABETIC GASTROPARESIS
Monday, August 13, 2012
Tranzyme (TZYM) hosted a conference call on Friday to discuss 2Q12 results
and to provide an update on key initiatives. Net loss per share was narrower
than expected at ($0.23) vs. ($0.33) BMO Capital estimate on
higher-than-expected revenues and lower OPEX, and TZYM ended 2Q12 with
$36.4M in cash. Key highlights from the quarter included completion of
enrollment in the phase 2b 12-week trial of GI pro-motility candidate
TZP-102in patients with diabetic gastroparesis and termination of the
license agreement with Norgine for ghrelin agonist ulimorelin following
failure of phase 3 trials in post-operative ileus. With primary focus on
progress with TZP-102, guidance was maintained for top-line phase 2b data by
YE2012 and TZYM also announced the initiation of the DIGEST phase 2b study
evaluating dosing of the drug before meals and with data expected by 1H13.
• We are encouraged by increased financial discipline and narrowing loss at
TZYM, which should help e
extend the companies cash runway as phase 2b
programs come to completion in 1H13.
• Progress with TZP-102 in diabetic gastroparesis is in line with our
expectations and we believe that
the initiation of a second dosing study
should further optimize design of a pivotal phase 3 study.
• We continue to believe that the risk-reward proposition is attractive for
TZP-102 in diabetic
gastroparesis with downside risk further mitigated by
initiation of a second study.
• We believe that phase 2 data has already established efficacy of TZP-102
in addressing upper GI
symptoms associated with diabetic gastroparesis and
believe that further proof-of-concept could
support expansion into even
larger indications like gastroesophageal reflux disease (GERD).
Jim Birchenough, M.D.
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