treatment of acute congestive heart failure;
-- Advancing new Palatin compound PL-6983, which in animal models causes
significantly lower increases in blood pressure than seen with
bremelanotide, into Phase 1 clinical studies for treatment of male and
female sexual dysfunction;
-- Continuing its melanocortin receptor-based collaboration with
AstraZeneca AB on developing compounds for treating obesity; and
-- Effecting an immediate reduction in force of 30% of the Company's
"Palatin has had a strong and productive research effort focused on two challenging and exciting scientific areas: melanocortin and natriuretic peptide receptors. We have generated a substantial amount of data and an extensive product portfolio that allows us numerous exciting opportunities to drive value for our shareholders," stated Carl Spana, Ph.D., President and Chief Executive Officer of Palatin. Dr. Spana continued, "Concentrating our efforts on value drivers and matching our resources to those projects with the highest potential for near-term success is our immediate priority."
The Company believes that the staff reduction aligns the Company's human resources with its new strategic objectives and will allow the Company to effectively advance its development and clinical programs. The downsizing is expected to result in annual savings of approximately $3 million. Palatin will record an estimated $400,000 charge for severance and related costs in the quarter ending June 30, 2008. The Company, which ended the March 31, 2008 quarter with $17.6 million of cash, cash equivalents and available-for-sale investments, anticipates that the restructuring will reduce its cash burn rate to approximately $16 million over the next four quarters.
Palatin reported a net loss of $5.1 million, or $(0.06) per basic and
diluted share, for the quarter ende
|SOURCE Palatin Technologies, Inc.|
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