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Print Edition StoriesThursday, March 11, 2010
Collaboration revenue gives Synta $79.1M profit
By Mass High Tech staff
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Despite reporting a fourth quarter loss, Lexington-based biotech Synta Pharmaceuticals Corp. ended 2009 with a net profit of $79.1 million thanks in large part to deferred revenue through a broken partnership with GlaxoSmithKline.
GSK cancelled the partnership following Synta’s halting of a late stage drug trial, amid safety concerns in February 2009, leading to a deferred payment that Synta recorded in its Q3 reports.
In releasing its annual report today, Synta (Nasdaq: SNTA) cited fourth quarter collaboration revenue of $4.7 million compared to net revenue of $600,000 for the same period in 2008. Total collaboration revenue was $144.2 million for the year ended Dec. 31, including an acceleration of $114.6 million of deferred revenue related to the GSK partnership compared to $2.6 million of total collaboration revenue for the same period in 2008.
Synta reported a net loss of $7 million in the fourth quarter of 2009, compared to a net loss of $26 million for the same period in 2008. For the year, Synta reported a net profit of $79.1 million, or $2.33 per basic share and $2.32 per diluted share, compared to a net loss of $92.6 million, or $2.75 per basic and diluted share, for the same period in 2008.
Synta is a biopharmaceutical company focused on small molecule drugs targeting severe medical conditions, including cancer and chronic inflammatory diseases.
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