Palatin fourth quarter revenues decrease to $11,000

Palatin Technologies, Inc. (NYSE MKT: PTN), a biopharmaceutical company developing targeted, receptor-specific peptide therapeutics for the treatment of diseases with significant unmet medical need and commercial potential, today announced results for its fourth quarter and fiscal year ended June 30, 2012. 

Fiscal Year and Recent Highlights

• Bremelanotide development for Female Sexual Dysfunction (FSD):
  • Palatin completed patient treatment in its Phase 2B clinical trial in premenopausal women with FSD
  • Primary data analysis and announcement of top-line results anticipated in first-half of fourth quarter of calendar year 2012
• Obesity Collaboration with AstraZeneca:
  • Multiple classes of collaboration compounds have advanced to various stages of development. Though collaboration partner AstraZeneca has decided to discontinue further development of AZD2820, the only compound in clinical trials, AstraZeneca remains committed to this collaboration program and to the continued advancement of collaboration compounds for treatment of obesity.
• Intellectual property developments:
  • Two additional United States patents have issued in the melanocortin field
  • Palatin has advanced its bremelanotide, PL-3994, and new melanocortin peptide patent applications in countries outside the United States
• Equity financing:
  • On July 3, 2012, Palatin closed on a $35.0 million private placement.  The offering consisted of the sale of 3,873,000 shares of common stock, Series A 2012 warrants to purchase 31,988,151 shares of common stock, and Series B 2012 warrants to purchase 35,488,380 shares of common stock.
  • Net proceeds to Palatin after deducting offering expenses were $34.5 million 

Fourth Quarter and Fiscal Year End 2012 Results

Palatin reported a net loss of $5.3 million, or $(0.14) per basic and diluted share, for the quarter ended June 30, 2012, compared to a net loss of $3.3 million, or $(0.09) per basic and diluted share, for the same period in 2011.    

The increase in net loss for the quarter ended June 30, 2012 compared to the net loss for the quarter ended June 30, 2011 was primarily the result of costs relating to its on-going Phase 2B clinical trial with bremelanotide which commenced in June 2011.  In addition, for the quarter ended June 30, 2011, Palatin recognized $1.3 million of non-cash, non-operating income related to its March 2011 firm commitment public offering, 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, 2012 was $17.3 million, or $(0.49) per basic and diluted share, compared to a net loss of $12.8 million, or $(0.64) per basic and diluted share, for the year ended June 30, 2011. 

The change in net loss for the year ended June 30, 2012 compared to the net loss for the year ended June 30, 2011 was attributable to the increase in costs relating to its on-going Phase 2B clinical trial with bremelanotide and a decrease in revenue recognized in the comparable periods.

Revenue

Revenues in the quarter ended June 30, 2012 were $11,000, compared to $0.2 million for the same period in 2011.  For the year ended June 30, 2012, revenues were $0.1 million, compared to $1.5 million for year ended June 30, 2011, which included $1.0 million in grants under the Patient Protection and Affordable Care Act of 2010. 

Costs and Expenses

For the quarter ended June 30, 2012, total operating expenses were $5.7 million compared to $4.7 million for the comparable quarter of 2011.  For the year ended June 30, 2012, total operating expenses were $18.9 million compared to $15.1 million for the year ended June 30, 2011. The increases in operating expenses for the respective periods is the result of costs relating to Palatin's on-going Phase 2B clinical trial with bremelanotide which commenced in June 2011.

Cash Position/Going Concern

Palatin's cash and cash equivalents were $3.8 million as of June 30, 2012, compared to cash and cash equivalents of $18.9 million at June 30, 2011, with current liabilities of $3.5 million as of June 30, 2012 compared to $2.8 million as of June 30, 2011.

Palatin raised net proceeds of $34.5 million in a private placement which closed on July 3, 2012.

SOURCE Palatin Technologies, Inc.