CRANBURY, N.J., Sept. 30 NJ-Palatin-earnings
CRANBURY, N.J., Sept. 30 /PRNewswire-FirstCall/ -- Palatin Technologies,
Inc. (Amex: PTN) announced today results for its fourth quarter and fiscal
year ended June 30, 2008. Palatin reported a net loss of $5.2 million, or
$(0.06) per basic and diluted share, for the quarter ended June 30, 2008,
compared to a net loss of $6.1 million, or $(0.07) per basic and diluted
share, for the same period in 2007. Total revenues in the quarter ended June
30, 2008 were $1.0 million, compared to $2.6 million for the same period in
2007.
The decrease in the net loss for the quarter ended June 30, 2008 versus
the quarter ended June 30, 2007 was primarily attributable to the reduction in
development expenses for bremelanotide, the Company's drug previously under
development for the treatment of male and female sexual dysfunction.
For the years ended June 30, 2008 and 2007, total revenues were $11.5
million and $14.4 million, respectively. Palatin's net loss for the year
ended June 30, 2008 was $14.4 million, or $(0.17) per basic and diluted share,
compared to a net loss of $27.8 million, or $(0.36) per basic and diluted
share, for the year ended June 30, 2007.
The audited consolidated financial statements in Palatin's Annual Report
on Form 10-K for the year ended June 30, 2008 contains a going concern
qualification from its independent registered public accounting firm. As of
June 30, 2008, the Company had cash, cash equivalents and investments totaling
$12.8 million.
FISCAL YEAR 2008 HIGHLIGHTS
Significant developments in Palatin's business since June 30, 2007 include
the following:
-- Restructuring and refocusing its development and clinical programs. As
part of the restructuring, Palatin discontinued development of bremelanotide
for treatment of sexual dysfunction and reduced its number of employees by
one-half. The downsizings leave Palatin with 46 employees today and will
result in an annual savings of approximately $7 million.
-- Palatin has continued to advance its product portfolio in
cardiovascular, obesity and sexual dysfunction fields by:
-- Filing an Investigational New Drug Application and successfully
completing both a Phase 1 and Phase 2a trial with PL-3994, a
natriuretic peptide receptor A agonist under development for the
treatment of heart failure and difficult-to-treat hypertension.
-- Repositioning bremelanotide as a therapeutic drug for prevention of
organ damage secondary to cardiac surgery and for related
indications.
-- Developing a new molecule for treatment of sexual dysfunction, PL
6983, that in animal models show efficacy for sexual dysfunction
with significantly less effect on blood pressure than seen with
bremelanotide.
-- Amending its agreement with AstraZeneca to license additional compounds
and associated intellectual property to AstraZeneca. The global licensing and
research collaboration agreement with AstraZeneca to discover, develop and
commercialize compounds for treatment of obesity, diabetes and related
metabolic syndrome was entered into in January 2007.
-- Effective December 2007, Palatin and King Pharmaceuticals ended their
collaborative development and marketing agreement on bremelanotide for the
treatment of sexual dysfunction.
LICENSE, GRANTS AND CONTRACTS
For the quarter ended June 30, 2008, Palatin recognized $0.8 million of
contract revenue under its collaboration agreement with AstraZeneca. In the
comparable quarter of 2007, Palatin recognized $0.7 million of contract
revenue from AstraZeneca and $1.9 million related to its collaboration
agreement with King.
COSTS AND EXPENSES
Total operating expenses for the quarter ended June 30, 2008 were $6.4
million versus $9.1 million for the comparable quarter of 2007, primarily due
to lower development costs of bremelanotide.
CASH POSITION
Palatin's cash, cash equivalents and investments totaled $12.8 million as
of June 30, 2008, compared to $33.8 million at June 30, 2007.
Palatin Technologies' management will discuss the fourth quarter and year
end financial results for the fiscal year ended June 30, 2008 and provide an
update on corporate developments during a conference call and webcast on
September 30, 2008 at 11:00 a.m. ET.
Conference Call and Webcast Access Information
-- Q4-Fiscal Year 2008 Conference
Call -- Live September 30, 2008 at 11:00 a.m. ET
Domestic Dial-In Number 1-866-263-2958
International Dial-In Number 1-913-312-6664
-- Q4-Fiscal Year 2008 Conference
Call -- Replay September 30 - October 7, 2008
Domestic Dial-In Number 1-888-203-1112
International Dial-In Number 1-719-457-0820
Replay Passcode:6671824
-- Webcast Live and Replay Access http://www.palatin.com
The webcast and replay can be accessed by logging on to the "Investor
Center-Webcasts" section of Palatin's website at http://www.palatin.com.
About Palatin Technologies, Inc.
Palatin Technologies, Inc. is a biopharmaceutical company dedicated to the
development of proprietary peptide, peptide mimetic and small molecule
compounds with a focus on melanocortin and natriuretic peptide receptor
systems. The melanocortin system is involved in a large and diverse number of
physiologic functions, and therapeutic agents modulating this system may have
the potential to treat a variety of conditions and diseases, including sexual
dysfunction, obesity and related disorders, ischemia and reperfusion injury,
hemorrhagic shock and inflammation-related diseases. The natriuretic peptide
receptor system has numerous cardiovascular functions, and therapeutic agents
modulating this system may be useful in treatment of heart failure,
hypertension and other cardiovascular diseases. 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
http://www.palatin.com.
Forward-looking Statements
Statements about the Company's future expectations, including statements
about its development programs, proposed indications for its product
candidates, pre-clinical activities, 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 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,
20082007 2006
REVENUES:
Licenses, grants and
contracts $ 11,483,287 $ 14,405,665 $ 18,239,783
Royalties -- 1,508,862
Total revenues 11,483,287 14,405,66519,748,645
OPERATING EXPENSES:
Research and development 21,187,762 36,913,73941,013,894
General and administrative 6,928,2957,293,091 6,843,817
Cost of product sales -- 2,041,175
Royalties -- 299,995
Total operating expenses28,116,057 44,206,83050,198,881
Loss from operations (16,632,770) (29,801,165) (30,450,236)
OTHER INCOME (EXPENSE):
Investment income 1,030,4521,324,671 855,601
Interest expense (73,495) (53,339) (30,522)
Total other income, net956,9571,271,332 825,079
Loss before income taxes (15,675,813) (28,529,833) (29,625,157)
Income tax benefit 1,291,444 778,308 666,275
NET LOSS $(14,384,369)$(27,751,525) $(28,958,882)
Basic and diluted net loss
per common share $(0.17) $(0.36) $(0.48)
Weighted average number of
common shares outstanding
used in computing basic
and diluted net loss per
common share 85,220,575 76,204,16060,356,610
PALATIN TECHNOLOGIES, INC.
Consolidated Balance Sheet Data
June 30, 2008June 30, 2007
ASSETS
Current assets:
Cash and cash equivalents $9,421,770 $31,447,615
Available-for-sale investments 3,352,7712,323,642
Accounts receivable5,747 607,841
Prepaid expenses and other
current assets 484,3621,008,464
Total current assets 13,264,650 35,387,562
Property and equipment, net 5,128,0766,070,226
Restricted cash 475,000 475,000
Other assets 257,198 848,446
Total assets $19,124,924 $42,781,234
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Capital lease obligations,
current portion$263,128 $216,841
Accounts payable 635,1831,120,894
Accrued expenses 1,666,6282,420,837
Accrued compensation 767,509 941,300
Deferred revenue, current portion 1,666,6694,864,833
Total current liabilities4,999,1179,564,705
Capital lease obligations, net
of current portion 121,629 275,126
Deferred rent, net of current
portion1,479,7941,966,628
Deferred revenue, net of current
portion 5,972,220 12,443,087
Total liabilities 12,572,760 24,249,546
Commitments and contingencies
Stockholders' equity:
Preferred stock of $0.01 par value --
authorized 10,000,000 shares; Series
A Convertible; issued and outstanding
4,997 shares as of June 30, 2008 and
2007, respectively 50 50
Common stock of $0.01 par value --
authorized 150,000,000 shares;
issued and outstanding 85,524,077 and
85,126,915 shares as of June 30, 2008
and 2007, respectively 855,241 851,269
Additional paid-in capital 208,247,194 205,875,438
Accumulated other comprehensive
income 29,117-
Accumulated deficit (202,579,438)(188,195,069)
Total stockholders' equity 6,552,164 18,531,688
Total liabilities and
stockholders' equity$19,124,924 $42,781,234
SOURCE Palatin Technologies, Inc.
