PALATIN TECHNOLOGIES, INC. 
By CRANBURY, N.J., May 16, 2011 /PRNewswire/ -- Palatin Technologies, Inc. (NYSE Amex: PTN), a biopharmaceutical company developing bremelanotide for sexual dysfunction indications and PL-3994 for acute asthma and other indications, today announced results for its third quarter ended March 31, 2011.
Recent Highlights
-- Following a meeting with the U.S. Food and Drug Administration (FDA),
Palatin submitted a revised protocol to the FDA for initiation of an
at-home Phase 2 clinical trial of subcutaneously administered
bremelanotide for women with female sexual dysfunction (FSD). This Phase
2 trial for women with FSD is scheduled to start in the second quarter
of calendar 2011.
-- Palatin has started discussions with a number of potential development
and marketing partners for PL-3994 for acute asthma, which would include
the proof-of-concept human trial for asthma using a subcutaneously
administered formulation and development of an inhalation formulation.
-- Collaboration compounds licensed pursuant to Palatin's research
collaboration and license agreement with AstraZeneca for treatment of
obesity, diabetes and related metabolic syndrome have advanced to the
clinical stage.
-- In March 2011 Palatin closed on an underwritten public offering
resulting in net proceeds of $21.1 million, which should be sufficient
to fund projected operations through calendar year 2012.
Third Quarter Fiscal 2011 Financial Results
Palatin reported a net loss of $3.8 million, or $(0.17) per basic and diluted share, for the quarter ended March 31, 2011, compared to a net loss of $2.0 million, or $(0.20) per basic and diluted share for the same period in 2010.
The increase in net loss for the quarter ended March 31, 2011, compared to the net loss for the same period last fiscal year, was primarily attributable to a decrease in revenue recognized under Palatin's research collaboration and license and clinical trial collaboration agreements with AstraZeneca as a result of the successful completion of the research collaboration portion of the agreements, and secondarily to a non-cash, non-operating expense of $1.3 million, which represents the increase in estimated fair value of the warrant liability.
Revenue
For the quarter ended March 31, 2011, Palatin recognized $0.1 million of contract revenue under its license and collaboration agreement with AstraZeneca, compared to $2.6 million for the same period in 2010.
Costs and Expenses
Total operating expenses for the quarter ended March 31, 2011 were $2.7 million compared to $4.6 million for the comparable quarter of 2010. The net decrease in operating expenses for the quarter was primarily due to Palatin's previously disclosed realignment of resources and reduction in staffing levels in 2010.
Cash position
Palatin's cash and cash equivalents were $22.0 million as of March 31, 2011, compared to cash, cash equivalents and investments of $8.9 million at June 30, 2010, with current liabilities of $1.9 million as of March 31, 2011 compared to $2.4 million as of June 30, 2010.
The increase in cash and cash equivalents is attributable to Palatin's previously announced completion of its $23.0 million public offering in which Palatin sold 23,000,000 shares of its common stock, Series A warrants to purchase up to 2,000,000 shares of its common stock, and Series B warrants to purchase up to 21,000,000 shares of its common stock. The net proceeds to Palatin, after deducting underwriting discounts and commissions and other offering expenses, were approximately $21.1 million.
The Company believes, based on its current operating plan, that its cash and cash equivalents as of March 31, 2011 will be sufficient to fund its operations through at least calendar year 2012.
CONFERENCE CALL / WEBCAST
Palatin will host a conference call and webcast on May 16, 2011 at 11:00 a.m. Eastern Time to discuss its third quarter of fiscal year 2011 financial results and plans for its programs under development. Individuals interested in listening to the conference call live can dial 1-866-316-1363 (domestic) or 1-913-312-0861 (international), Pass code 2950108. The webcast and replay can be accessed by logging on to the "Investor/Media Center-Webcasts" section of Palatin's website at http://www.palatin.com. A telephone and webcast replay will be available approximately one hour after the completion of the call. To access the telephone replay, dial 1-888-203-1112 (domestic) or 1-719-457-0820 (international), Pass code 2950108. The webcast and telephone replay will be available through May 23, 2011.
About Palatin Technologies, Inc.
Palatin Technologies, Inc. is a biopharmaceutical company dedicated to the development of peptide, peptide mimetic and small molecule agonists with a focus on melanocortin and natriuretic peptide receptor systems. Palatin's strategy is to develop products and then form marketing collaborations with industry leaders in order to maximize their commercial potential. For additional information regarding Palatin, please visit Palatin Technologies' website at http://www.palatin.com.
Forward-looking Statements
Statements about future expectations of Palatin Technologies, Inc., including statements about its development programs, proposed indications for its product candidates, pre-clinical activities, clinical trials and clinical trial results, collaborations with others, potential collaborations or agreements on its product candidates, and all other statements in this document other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and as that term is defined in the Private Securities Litigation Reform Act of 1995. Palatin intends that such forward-looking statements be subject to the safe harbors created thereby. Palatin's actual results may differ materially from those discussed in the forward-looking statements for various reasons, including, but not limited to Palatin's ability to fund development of its technology, ability to establish and successfully complete clinical trials and pre-clinical studies and the results of those trials and studies, dependence on its partners for certain development activities, need for regulatory approvals and commercial acceptance of its products, ability to protect its intellectual property, and other factors discussed in Palatin's periodic filings with the Securities and Exchange Commission. Palatin is not responsible for updating for events that occur after the date of this press release.
PALATIN TECHNOLOGIES, INC.
and Subsidiary
Consolidated Statements of Operations
(unaudited)
Three Months Ended
March 31,
------------------
2011 2010
---- ----
REVENUES:
License and
contract $61,294 $2,559,852
Grant - -
--- ---
Total revenues 61,294 2,559,852
OPERATING
EXPENSES:
Research and
development 1,722,432 3,356,956
General and
administrative 955,547 1,238,187
------- ---------
Total operating
expenses 2,677,979 4,595,143
--------- ---------
Income (loss) from
operations (2,616,685) (2,035,291)
---------- ----------
OTHER INCOME
(EXPENSE):
Investment income 18,982 16,641
Interest expense (1,974) (2,287)
Increase in fair
value of warrants (1,257,691) -
Gain on sale of
securities 58,956 -
Gain (loss) on
sale/disposition
of supplies and
equipment (7,466) -
------ ---
Total other income
(expense) (1,189,193) 14,354
---------- ------
Income (loss)
before income
taxes (3,805,878) (2,020,937)
Income tax benefit - -
--- ---
NET INCOME (LOSS) $(3,805,878) $(2,020,937)
=========== ===========
Basic net income
(loss) per common
share $(0.17) $(0.20)
====== ======
Diluted net income
(loss) per common
share $(0.17) $(0.20)
====== ======
Weighted average
number of common
shares
outstanding used
in computing
basic net income
(loss) per common
share 22,832,109 9,987,323
========== =========
Weighted average
number of common
shares
outstanding used
in computing
diluted net
income (loss) per
common share 22,832,109 9,987,323
========== =========
Nine Months Ended
March 31,
-----------------
2011 2010
---- ----
REVENUES:
License and
contract $472,849 $13,505,770
Grant 846,768 -
------- ---
Total revenues 1,319,617 13,505,770
OPERATING EXPENSES:
Research and
development 7,159,634 8,739,389
General and
administrative 3,226,798 3,526,883
--------- ---------
Total operating
expenses 10,386,432 12,266,272
---------- ----------
Income (loss) from
operations (9,066,815) 1,239,498
---------- ---------
OTHER INCOME
(EXPENSE):
Investment income 72,342 120,270
Interest expense (5,607) (9,303)
Increase in fair
value of warrants (1,257,691) -
Gain on sale of
securities 119,346 -
Gain (loss) on
sale/disposition
of supplies and
equipment (5,666) 95,000
------ ------
Total other income
(expense) (1,077,276) 205,967
---------- -------
Income (loss)
before income
taxes (10,144,091) 1,445,465
Income tax benefit 637,391 998,408
------- -------
NET INCOME (LOSS) $(9,506,700) $2,443,873
=========== ==========
Basic net income
(loss) per common
share $(0.65) $0.20
====== =====
Diluted net income
(loss) per common
share $(0.65) $0.20
====== =====
Weighted average
number of common
shares outstanding
used in computing
basic net income
(loss) per common
share 14,669,131 9,575,314
========== =========
Weighted average
number of common
shares outstanding
used in computing
diluted net income
(loss) per common
share 14,669,131 9,646,791
========== =========
PALATIN TECHNOLOGIES, INC.
and Subsidiary
Consolidated Balance Sheets
(unaudited)
March Pro- June
31, forma 30,
------ ----- -----
March
31,
2011 2011 2010
---- ------ ----
ASSETS
Current assets:
Cash and cash
equivalents $22,032,649 $22,032,649 $5,405,430
Available-for-sale
investments - - 3,462,189
Accounts receivable - - 2,879
Prepaid expenses and
other current assets 539,361 539,361 393,313
------- ------- -------
Total current assets 22,572,010 22,572,010 9,263,811
Property and
equipment, net 1,511,892 1,511,892 2,388,365
Restricted cash 350,000 350,000 475,000
Other assets 253,403 253,403 261,701
------- ------- -------
Total assets $24,687,305 $24,687,305 $12,388,877
=========== =========== ===========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Capital lease
obligations $19,393 $19,393 $19,670
Accounts payable 386,261 386,261 155,795
Accrued compensation 211,941 211,941 -
Unearned revenue 70,796 70,796 -
Accrued expenses 1,208,920 1,208,920 2,219,466
Total current
liabilities 1,897,311 1,897,311 2,394,931
Capital lease
obligations - - 14,284
Warrant liability 6,370,555 - -
Deferred rent 258,161 258,161 661,389
------- ------- -------
Total liabilities 8,526,027 2,155,472 3,070,604
--------- --------- ---------
Stockholders' equity:
Preferred stock of
$.01 par value -
authorized
10,000,000 shares;
Series A Convertible;
issued and
outstanding 4,997
shares as of March
31, 2011 and June
30, 2010,
respectively 50 50 50
Common stock of $.01
par value -
authorized
40,000,000 shares;
issued and
outstanding
34,900,591 and
11,702,818 shares as
of March 31, 2011
and June 30, 2010,
respectively 349,006 349,006 117,028
Additional paid-in
capital 234,493,100 240,863,655 218,236,723
Accumulated other
comprehensive income - - 138,650
Accumulated deficit (218,680,878) (218,680,878) (209,174,178)
------------
Total stockholders'
equity 16,161,278 22,531,833 9,318,273
---------- ---------- ---------
Total liabilities and
stockholders' equity $24,687,305 $24,687,305 $12,388,877
=========== =========== ===========
SOURCE Palatin Technologies, Inc.
