CRANBURY, N.J., Sept. 27 /PRNewswire-FirstCall/ -- Palatin Technologies, Inc. (NYSE Amex: PTN), a biopharmaceutical company dedicated to the development of peptide, peptide mimetic and small molecule agonist compounds with a focus on melanocortin and natriuretic peptide receptor systems, today announced results for its fourth quarter and fiscal year ended June 30, 2010. All share and per share amounts are presented on a post-reverse-split basis, giving effect to the 1-for-10 reverse stock split announced on September 24, 2010.
Palatin's net loss for the year ended June 30, 2010 was $1.8 million, or $(0.18) per basic and diluted share, compared to a net loss of $4.8 million, or $(0.56) per basic and diluted share, for the year ended June 30, 2009.
Palatin reported a net loss of $4.2 million, or $(0.40) per basic and diluted share, for the quarter ended June 30, 2010, compared to a net loss of $0.2 million, or $(0.02) per basic and diluted share, for the same period in 2009.
The change in net losses for the year and quarter ended June 30, 2010 compared to the net loses for the year and quarter ended June 30, 2009 was primarily attributable to the varying amount of revenue recognized under Palatin's license and clinical trial agreements with AstraZeneca AB in the respective periods.
REVENUE
For the year ended June 30, 2010, total revenues were $14.2 million, compared to $11.4 million for year ended June 30, 2009. Total revenues in the quarter ended June 30, 2010 were $0.7 million, compared to $4.2 million for the same period in 2009.
COSTS AND EXPENSES
For the year ended June 30, 2010, total operating expenses were $17.2 million compared to $18.7 million for the year ended June 30, 2009. The decrease is primarily related to management's refinement of operations and expense control. For the quarter ended June 30, 2010, total operating expenses were $4.9 million versus $4.5 million for the comparable quarter of 2009. The net increases in operating expenses for the quarter was primarily due to expenses related to Palatin's clinical-stage development programs.
CASH POSITION/GOING CONCERN
Palatin's cash, cash equivalents and investments were $8.9 million as of June 30, 2010, compared to $7.8 million at June 30, 2009. Palatin's audited financial statements for the year ended June 30, 2010, included in the Company's Annual Report on Form 10-K to be filed September 27, 2010, includes an audit opinion from its independent registered public accounting firm, KPMG LLP, that contains a going concern explanatory paragraph.
CONFERENCE CALL / WEBCAST
Palatin will host a conference call and webcast on September 27, 2010 at 10:00 a.m. Eastern Time to discuss the previously announced realignment of its workforce and operations to reflect a strategic reassessment of research and development activities and corporate objectives and the fourth quarter of fiscal year 2010 financial results. Individuals interested in listening to the conference call live can dial 800-753-0343 (domestic) or 913-312-1376 (international), passcode 4114932. The webcast and replay can be accessed by logging on to the "Investor/Media Center-Webcasts" section of Palatin's website at http://www.palatin.com/. A telephone and webcast replay will be available approximately one hour after the completion of the call. To access the telephone replay, dial 888-203-1112 (domestic) or 719-457-0820 (international), passcode 4114932. The webcast and telephone replay will be available through October 4, 2010.
About Palatin Technologies, Inc.
Palatin Technologies, Inc. is a biopharmaceutical company focused on discovering and developing targeted, receptor-specific small molecule and peptide therapeutics. 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 future expectations of Palatin Technologies, Inc., including statements about its development programs, proposed indications for its product candidates, pre-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. 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 events that occur after the date of this press release.
PALATIN TECHNOLOGIES, INC. and Subsidiary Consolidated Statement of Operations Data (unaudited) Year Ended June 30, 2010 2009 ---- ---- REVENUES $14,180,727 $11,351,774 ----------- ----------- OPERATING EXPENSES: Research and development 12,293,910 13,356,751 General and administrative 4,901,203 5,296,859 --------- --------- Total operating expenses 17,195,113 18,653,610 ---------- ---------- Loss from operations (3,014,386) (7,301,836) ---------- ---------- OTHER INCOME (EXPENSE): Investment income 141,635 233,319 Interest expense (13,165) (26,159) Gain on sale of supplies and equipment 95,000 550,968 ------ ------- Total other income, net 223,470 758,128 ------- ------- Loss before income taxes (2,790,916) (6,543,708) Income tax benefit 998,408 1,741,476 ------- --------- NET LOSS $(1,792,508) $(4,802,232) =========== =========== Basic and diluted net loss per common share $(0.18) $(0.56) ====== ====== Weighted average number of 9,861,215 8,637,030 common shares outstanding used ========= ========= in computing basic and diluted net loss per common share Quarter Ended June 30, 2010 2009 ---- ---- REVENUES $674,957 $4,227,070 -------- OPERATING EXPENSES: Research and development 3,554,521 3,045,423 General and administrative 1,374,320 1,415,171 --------- Total operating expenses 4,928,841 4,460,594 --------- --------- Loss from operations (4,253,884) (233,524) ---------- -------- OTHER INCOME (EXPENSE): Investment income 21,365 38,137 Interest expense (3,862) (5,143) Gain on sale of supplies and equipment - - --- --- Total other income, net 17,503 32,994 ------ ------ Loss before income taxes (4,236,381) (200,530) Income tax benefit - - --- --- NET LOSS $(4,,236,381) $(200,530) ============ ========= Basic and diluted net loss per common share $(0.40) $(0.02) ====== ====== Weighted average number of 10,722,061 8,666,290 common shares outstanding used ========== ========= in computing basic and diluted net loss per common share PALATIN TECHNOLOGIES, INC. and Subsidiary Consolidated Balance Sheet Data (unaudited) June 30, 2010 June 30, 2009 ------------- ------------- ASSETS Current assets: Cash and cash equivalents $5,405,430 $4,378,662 Available-for-sale investments 3,462,189 3,439,650 Accounts receivable 2,879 508,528 Prepaid expenses and other current assets 393,313 492,824 ------- ------- Total current assets 9,263,811 8,819,664 Property and equipment, net 2,388,365 3,650,783 Restricted cash 475,000 475,000 Other assets 261,701 254,364 ------- ------- Total assets $12,388,877 $13,199,811 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Capital lease obligations $19,670 $87,675 Accounts payable 155,795 206,363 Accrued expenses 2,219,466 1,420,741 Deferred revenue - 6,955,553 --- --------- Total current liabilities 2,394,931 8,670,332 Capital lease obligations 14,284 33,954 Deferred rent 661,389 1,182,026 ------- --------- Total liabilities 3,070,604 9,886,312 --------- --------- 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, 2010 and 2009, respectively 50 50 Common stock of $0.01 par value - authorized 40,000,000 shares; issued and outstanding 11,702,818 and 8,666,290 shares as of June 30, 2010 and 2009, respectively 117,028 86,663 Additional paid-in capital 218,236,723 210,492,345 Accumulated other comprehensive income 138,650 116,111 Accumulated deficit (209,174,178) (207,381,670) Total stockholders' equity 9,318,273 3,313,499 --------- --------- Total liabilities and stockholders' equity $12,388,877 $13,199,811 =========== ===========
Palatin Technologies, Inc.
CONTACT: Investors: Stephen T. Wills, CPA, MST, EVP-Operations / Chief
Financial Officer, Palatin Technologies, Inc., +1-609-495-2200,
Info@palatin.com; Media: Carney Noensie, Burns McClellan, Vice President,
Investor Relations, +1-212-213-0006, cnoensie@burnsmc.com
Web Site: http://www.palatin.com/
