Palatin's fourth quarter net loss decreases to $3.3 million

Palatin Technologies, Inc.Sep 22 2011

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 fourth quarter and fiscal year ended June 30, 2011.  

Recent Highlights

• Palatin initiated enrollment in its Phase 2B trial with bremelanotide in premenopausal women with female sexual dysfunction.
• Palatin announced commencement of a Phase 1 trial of AZD2820, under development for treatment of obesity, in collaboration with AstraZeneca.
• In March 2011, Palatin closed on a $23.0 million firm commitment public offering consisting of 23 million units at a price to the public of $1.00.  Net proceeds to Palatin after deducting underwriting discounts and other offering expenses were $21.0 million.

Fourth Quarter and Fiscal Year End 2011 Results

Palatin reported a net loss of $3.3 million, or $(0.09) per basic and diluted share, for the quarter ended June 30, 2011, compared to a net loss of $4.2 million, or $(0.40) per basic and diluted share, for the same period in 2010.    

The change in net loss for the quarter ended June 30, 2011 compared to the net loss for the quarter ended June 30, 2010 was primarily attributable to $1.3 million of non-cash, non-operating income, which represents the decrease in estimated fair value of the warrant liability from March 31, 2011 through May 11, 2011, the date the warrants ceased to be classified as a liability upon stockholder approval of the increase in authorized common stock

Palatin's net loss for the year ended June 30, 2011 was $12.8 million, or $(0.64) per basic and diluted share, compared to a net loss of $1.8 million, or $(0.18) per basic and diluted share, for the year ended June 30, 2010.  

The change in net loss for the year ended June 30, 2011 compared to the net loss for the year ended June 30, 2010 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.

Revenue

Revenues in the quarter ended June 30, 2011 were $0.2 million, compared to $0.7 million for the same period in 2010.  For the year ended June 30, 2011, revenues were $1.5 million, compared to $14.2 million for year ended June 30, 2010.  

Costs and Expenses

For the quarter ended June 30, 2011, total operating expenses were $4.7 million compared to $4.9 million for the comparable quarter of 2010.  For the year ended June 30, 2011, total operating expenses were $15.1 million compared to $17.2 million for the year ended June 30, 2010. The decreases in operating expenses for the respective periods is the result of reducing staffing levels pursuant to Palatin's strategic decision announced in September 2010.

Cash position

Palatin's cash and cash equivalents were $18.9 million as of June 30, 2011, compared to cash, cash equivalents and investments of $8.9 million at June 30, 2010, with current liabilities of $2.8 million as of June 30, 2011 compared to $2.4 million as of June 30, 2010.  

Palatin believes, based on its current operating plan, that its cash and cash equivalents will be sufficient to fund its operations through at least calendar year 2012.