CRANBURY, N.J., Sept. 14 /PRNewswire-FirstCall/ -- Palatin Technologies, Inc. (Amex: PTN) announced today results for its fourth quarter and fiscal year ended June 30, 2007. Palatin reported a net loss of $6.1 million, or ($0.07) per basic and diluted share, for the quarter ended June 30, 2007, compared to a net loss of $7.9 million, or ($0.11) per basic and diluted share, for the same period in 2006. Total revenues in the quarter ended June 30, 2007 were $2.6 million, compared to $5.0 million for the same period in 2006. As of June 30, 2007, the Company had cash, cash equivalents and investments totaling $33.8 million.
The decrease in the net loss for the quarter ended June 30, 2007 versus the quarter ended June 30, 2006 was primarily attributable to decreased research and development spending on bremelanotide, the Company's drug under development for the treatment of erectile dysfunction (ED) and female sexual dysfunction (FSD). Cost reimbursement revenue from King Pharmaceuticals, Inc. (King) also decreased as a result of the lower spending.
For the years ended June 30, 2007 and 2006, total revenues were $14.4 million and $19.7 million, respectively. Palatin's net loss for the year ended June 30, 2007 was $27.8 million, or ($0.36) per basic and diluted share, compared to a net loss of $29.0 million, or ($0.48) per basic and diluted share, for the year ended June 30, 2006.
FISCAL YEAR 2007 AND RECENT DEVELOPMENTS
Significant developments in Palatin's business since June 30, 2006 include the following:
-- The announcement of results of Part 2 of a Phase 2A pilot study
evaluating the effects of bremelanotide in post-menopausal women
diagnosed with FSD in which subjects reported an increased level of
genital arousal, an increased level of sexual desire and a higher
incidence of engaging in sexual activity compared to placebo.
-- The announcement of results from two Phase 2B trials evaluating
bremelanotide for ED, with one trial limited to non-diabetic patients
and the other to diabetic patients. The primary objective of the
studies was to characterize the efficacy and safety of bremelanotide in
these two ED populations and to identify the doses to use in further
-- The completion of an exclusive global licensing and research
collaboration agreement with AstraZeneca AB to discover, develop and
commercialize small molecule compounds that target melanocortin
receptors for the treatment of obesity, diabetes and related metabolic
syndrome and the receipt of an up-front payment of $10 million.
-- The February 2007 sale of 13.75 million shares of its common stock in
an underwritten offering at $2.00 per share, resulting in net proceeds
to the Company of $25.5 million, after commissions and expenses.
-- The announcement in August 2007 of a delay in plans for the initiation
of Phase 3 clinical trials with bremelanotide for the treatment of ED
as a result of responses from representatives of the U.S. Food and Drug
Administration, which raised serious concerns about the acceptable
benefit/risk ratio to support the progression of bremelanotide into
Phase 3 studies for ED as a first-line therapy in the general
-- The pending termination of the Collaborative Development and Marketing
Agreement with King, effective December 2007, upon which Palatin will
reacquire sole ownership of all rights to bremelanotide, without any
obligation for future payments to King. King has no financial
obligation for future payments to Palatin, other than for previously
incurred costs not yet reimbursed and approved expense reimbursements
related to the wind-down of the collaboration.
-- Advancement of a lead compound through the preclinical stages resulting
in the anticipated filing of an Investigational New Drug Application
for a synthetic compound that mimics natriuretic peptides for the
treatment of patients with congestive heart failure in the second half
of calendar year 2007.
-- The completion of an exploratory at-home Phase 2B clinical trial in
pre- and postmenopausal women. We are in the final stages of compiling
the data and anticipate releasing the results of this trial later this
LICENSE, GRANTS AND CONTRACTS
For the quarter ended June 30, 2007, Palatin recognized revenue under its collaboration agreement with King of $1.8 million, which includes King's share of bremelanotide development costs, and $0.7 million of contract revenue related to its February 2007 collaboration with AstraZeneca. In the comparable quarter of 2006, Palatin recognized $4.9 million of contract revenue from King, reflecting significantly higher cost reimbursement revenue resulting from Palatin's clinical study activities.
COSTS AND EXPENSES
Total operating expenses for the quarter ended June 30, 2007 were $9.1 million versus $13.2 million for the comparable quarter of 2006, reflecting lower development costs of bremelanotide following the completion of two Phase 2B clinical trials in patients with ED, which were partially offset by other research and development spending and higher stock-based compensation charges.
Palatin's cash, cash equivalents and investments totaled $33.8 million as of June 30, 2007, compared to $30.7 million at June 30, 2006, as current year operating expenses were largely offset by net proceeds from the February 2007 stock offering and the receipt of $10 million from AstraZeneca upon the signing of the companies' research collaboration and license agreement.
Palatin Technologies' management will discuss the fourth quarter and year end financial results for the fiscal year ended June 30, 2007 and provide an update on corporate developments during a conference call and webcast on September 18, 2007 at 10:00 a.m. ET.
Conference Call and Webcast Access Information
-- Q4-Fiscal Year 2007 Conference Call - Live 9/18/2007 at 10:00 a.m. ET
Domestic Dial-In Number 1-866-454-4203
International Dial-In Number 1-913-312-6693
-- Q4-Fiscal Year 2007 Conference Call - Replay 9/18-9/25/2007
Domestic Dial-In Number 1-888-203-1112
International Dial-In Number 1-719-457-0820
Enter Pass Code I.D. # 4280242
-- Webcast Live and Replay Access http://www.palatin.com
The webcast and replay can be accessed by logging on to the investors
section of Palatin Technologies' website at http://www.palatin.com.
About Palatin Technologies, Inc.
Palatin Technologies, Inc. is a biopharmaceutical company focused on discovering and developing targeted, receptor-specific small molecule and peptide therapeutics. The Company's internal research and development capabilities, anchored by its proprietary MIDAS(TM) technology, are fueling product development. Palatin's strategy is to develop products and then form marketing collaborations with industry leaders in order to maximize their commercial potential. The Company currently has collaborations with AstraZeneca and the Mallinckrodt division of Covidien. For additional information regarding Palatin, please visit Palatin Technologies' website at http://www.palatin.com.
Statements about the Company's future expectations, including statements about its development programs, proposed indications for its product candidates, pre-clinical activities, marketing collaborations, 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. The Company intends that such forward-looking statements shall 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 the Company'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 recommence marketing and gain commercial acceptance of NeutroSpec(R), ability to protect its intellectual property, and other factors discussed in the Company's periodic filings with the Securities and Exchange Commission. The Company is not responsible for updating for events that occur after the date of this press release.
PALATIN TECHNOLOGIES, INC.
Consolidated Statement of Operations Data
Year Ended June 30,
2007 2006 2005
Licenses, grants and contracts $14,405,665 $18,239,783 $13,896,818
Royalties - 1,508,862 1,586,050
Product sales - - 2,474,325
Total revenues 14,405,665 19,748,645 17,957,193
Cost of product sales - 2,041,175 534,932
Royalties - 299,995 328,401
Research and development 36,913,739 41,013,894 25,045,279
General and administrative 7,293,091 6,843,817 7,460,607
Total operating expenses 44,206,830 50,198,881 33,369,219
Loss from operations (29,801,165) (30,450,236) (15,412,026)
OTHER INCOME (EXPENSE):
Investment income 1,324,671 855,601 488,262
Interest expense (53,339) (30,522) (14,487)
Total other income, net 1,271,332 825,079 473,775
Loss before income taxes (28,529,833) (29,625,157) (14,938,251)
Income tax benefit 778,308 666,275 580,275
NET LOSS $(27,751,525) $(28,958,882) $(14,357,976)
Basic and diluted net loss
per common share $(0.36) $(0.48) $(0.27)
Weighted average number of
common shares outstanding
used in computing basic and
diluted net loss per common
share 76,204,160 60,356,610 53,861,182
PALATIN TECHNOLOGIES, INC.
Consolidated Balance Sheet Data
June 30, 2007 June 30, 2006
Cash and cash equivalents $31,447,615 $28,333,211
Available-for-sale investments 2,323,642 2,330,834
Accounts receivable 607,841 69,591
Prepaid expenses and other current assets 1,008,464 1,453,650
Total current assets 35,387,562 32,187,286
Property and equipment, net 6,070,226 6,347,705
Restricted cash 475,000 475,000
Other assets 848,446 1,037,296
Total assets $42,781,234 $40,047,287
LIABILITIES AND STOCKHOLDERS' EQUITY
Capital lease obligations and notes payable,
current portion $216,841 $86,564
Accounts payable 1,120,894 3,092,962
Accrued expenses 2,420,837 4,466,428
Accrued compensation 941,300 803,900
Deferred revenue, current portion 4,864,833 3,995,575
Total current liabilities 9,564,705 12,445,429
Capital lease obligations and notes payable,
net of current portion 275,126 229,585
Deferred rent, net of current portion 1,966,628 2,358,550
Deferred revenue, net of current portion 12,443,087 6,713,942
Total liabilities 24,249,546 21,747,506
Commitments and contingencies
Preferred stock of $.01 par value -
authorized 10,000,000 shares; Series A
Convertible; issued and outstanding 4,997
and 9,997 shares as of June 30, 2007 and
2006, respectively 50 100
Common stock of $.01 par value - authorized
150,000,000 shares; issued and outstanding
85,126,915 and 70,878,521 shares as of
June 30, 2007 and 2006, respectively 851,269 708,785
Additional paid-in capital 205,875,438 178,089,176
Accumulated other comprehensive loss - (54,736)
Accumulated deficit (188,195,069) (160,443,544)
Total stockholders' equity 18,531,688 18,299,781
Total liabilities and stockholders'
equity $42,781,234 $40,047,287
|SOURCE Palatin Technologies, Inc.|
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