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Palatin Technologies, Inc. Reports Third Quarter Fiscal Year 2011 Results

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 ResultsPalatin 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.  

    RevenueFor 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 ExpensesTotal 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 positionPalatin'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 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

    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 SubsidiaryConsolidated Statements of Operations

    (unaudited)Three Months Ended March 31,Nine Months Ended March 31,2011201020112010REVENUES:License and contract$
    3,505,770Grant--846,768-Total revenues61,2942,559,8521,319,61713,505,770OPERATING EXPENSES:Research and development1,722,4323,356,9567,159,6348,739,389General and administrative955,5471,238,1873,226,7983,526,883Total operating expenses2,677,9794,595,14310,386,43212,266,272Income (loss) from operations(2,616,685)(2,035,291)(9,066,815)1,239,498OTHER INCOME  (EXPENSE):Investment income18,98216,64172,342120,270Interest expense(1,974)(2,287)(5,607)(9,303)Increase in fair value of warrants(1,257,691)-(1,257,691)-Gain on sale of securities58,956-119,346-Gain (loss) on sale/disposition of supplies and equipment(7,466)-(5,666)95,000Total other income (expense)(1,189,193)14,354(1,077,276)205,967Income (loss) before income taxes(3,805,878)(2,020,937)(10,144,091)1,445,465Income tax benefit--637,391998,408NET INCOME (LOSS)$
    2,443,873Basic net income (loss) per common share$
    .20Diluted net income (loss) per common share$
    .20Weighted average number of common shares outstanding used in computing basic net income (loss) per common share22,832,1099,987,32314,669,1319,575,314Weighted average number of common shares outstanding used in computing diluted net income (loss) per common share22,832,1099,987,32314,669,1319,646,791PALATIN TECHNOLOGIES, INC.and SubsidiaryConsolidated Balance Sheets

    (unaudited)March 31,2011Pro-formaMarch 31,  2011June 30,2010ASSETSCurrent 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 assets539,361


    393,313Total current assets22,572,010


    9,263,811Property and equipment, net1,511,892


    2,388,365Restricted cash350,000


    475,000Other assets253,403


    261,701Total assets$   24,687,305

    $   24,687,305

    2,388,877LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:  Capital lease obligations$


    9,670  Accounts payable 386,261


    155,795  Accrued compensation211,941


    -  Unearned revenue70,796


    -  Accrued expenses1,208,920


    2,219,466Total current liabilities1,897,311


    2,394,931Capital lease obligations -


    14,284Warrant liability6,370,555


    -Deferred rent258,161


    661,389Total liabilities8,526,027


    3,070,604Stockholders' 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, respectively50


    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, respectively349,006


    117,028  Additional paid-in capital234,493,100


    218,236,723  Accumulated other comprehensive income-


    138,650  Accumulated deficit (218,680,878)


    (209,174,178)Total stockholders' equity16,161,278


    9,318,273Total liabilities and stockholders' equity$   24,687,305

    $   24,687,305


    SOURCE Palatin Technologies, Inc.
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