CRANBURY, N.J., Feb. 15, 2011 /PRNewswire/ — Palatin Technologies, Inc. (NYSE Amex: PTN) a biopharmaceutical company dedicated to the development of peptide mimetic and small molecule agonist compounds with a focus on melanocortin and natriuretic peptide receptor systems, today announced results for its second quarter ended December 31, 2010. Palatin reported a net loss of $1.1 million, or $(0.09) per basic and diluted share, for the quarter ended December 31, 2010, compared to net income of $4.5 million, or $0.42 per basic and diluted share, for the same period in 2009.
The net loss for the quarter ended December 31, 2010, compared to net income for the same period last fiscal year, was primarily attributable to a decrease in revenue recognized under Palatin’s research collaboration and license and clinical trial collaboration agreements with AstraZeneca AB (AstraZeneca) as a result of the successful completion of the research collaboration portion of the agreements.
REVENUE
Revenues for the quarter ended December 31, 2010 were $1.0 million, consisting of $846,768 in grant revenue received under the Patient Protection and Affordable Care Act of 2010 and $195,408 in contract revenue pursuant to the collaboration agreement with AstraZeneca. For the quarter ended December 31, 2009, Palatin recognized $7.3 million of contract revenue under its collaboration agreement with AstraZeneca.
COSTS AND EXPENSES
Total operating expenses for the quarter ended December 31, 2010 were $2.9 million compared to $3.8 million for the comparable quarter of 2009. The net decrease in operating expenses for the quarter was primarily due to Palatin’s previously disclosed realignment of resources and reduction in staffing levels.
CASH POSITION / GOING CONCERN
Palatin’s cash, cash equivalents and investments were $3.7 million as of December 31, 2010, compared to $8.9 million at June 30, 2010, with current liabilities of $2.0 million as of December 31, 2010 compared to $2.4 million as of June 30, 2010. Palatin’s Quarterly Report on Form 10-Q, filed on February 14, 2011, contains going concern disclosures, as did Palatin’s Annual Report on Form 10-K filed on September 27, 2010.
CONFERENCE CALL / WEBCAST
Later this week Palatin will announce the time and date of a conference call and webcast to discuss its second quarter of fiscal year 2011 financial results.
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 for events that occur after the date of this press release.
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PALATIN TECHNOLOGIES, INC. and Subsidiary Consolidated Statements of Operations (unaudited) |
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Three Months Ended December 31, |
Six Months Ended December 31, |
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2010 |
2009 |
2010 |
2009 |
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REVENUES: |
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License and contract |
$ 195,408 |
$ 7,283,299 |
$ 411,555 |
$ 10,945,918 |
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Grant |
846,768 |
– |
846,768 |
– |
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Total revenues |
1,042,176 |
7,283,299 |
1,258,323 |
10,945,918 |
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OPERATING EXPENSES: |
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Research and development |
1,984,440 |
2,712,871 |
5,437,202 |
5,382,435 |
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General and administrative |
889,476 |
1,134,963 |
2,271,252 |
2,288,694 |
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Total operating expenses |
2,873,916 |
3,847,834 |
7,708,454 |
7,671,129 |
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Income (loss) from operations |
(1,831,740) |
3,435,465 |
(6,450,131) |
3,274,789 |
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OTHER INCOME (EXPENSE): |
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Investment income |
32,987 |
70,317 |
53,362 |
103,629 |
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Interest expense |
(1,329) |
(2,315) |
(3,633) |
(7,016) |
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Gain on sale of securities |
60,389 |
– |
60,389 |
– |
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Gain on sale of supplies and equipment |
1,800 |
– |
1,800 |
95,000 |
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Total other income, net |
93,847 |
68,002 |
111,918 |
191,613 |
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Income (loss) before income taxes |
(1,737,893) |
3,503,467 |
(6,338,213) |
3,466,402 |
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Income tax benefit |
637,391 |
998,408 |
637,391 |
998,408 |
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NET INCOME (LOSS) |
$ (1,100,502) |
$ 4,501,875 |
$ (5,700,822) |
$ 4,464,810 |
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Basic net income (loss) per common share |
$ (0.09) |
$ 0.42 |
$ (0.48) |
$ 0.42 |
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Diluted net income (loss) per common share |
$ (0.09) |
$ 0.42 |
$ (0.48) |
$ 0.42 |
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Weighted average number of common shares outstanding used in computing basic net income (loss) per common share |
11,839,309 |
9,616,954 |
11,785,470 |
9,373,788 |
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Weighted average number of common shares outstanding used in computing diluted net income (loss) per common share |
11,839,309 |
9,664,507 |
11,785,470 |
9,417,662 |
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PALATIN TECHNOLOGIES, INC. and Subsidiary Consolidated Balance Sheets (unaudited) |
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December 31, 2010 |
June 30, 2010 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ 1,731,615 |
$ 5,405,430 |
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Available-for-sale investments |
1,952,666 |
3,462,189 |
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Accounts receivable |
– |
2,879 |
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Prepaid expenses and other current assets |
245,024 |
393,313 |
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Total current assets |
3,929,305 |
9,263,811 |
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Property and equipment, net |
1,794,970 |
2,388,365 |
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Restricted cash |
475,000 |
475,000 |
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Other assets |
270,581 |
261,701 |
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Total assets |
$ 6,469,856 |
$ 12,388,877 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Capital lease obligations |
$ 20,708 |
$ 19,670 |
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Accounts payable |
502,125 |
155,795 |
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Accrued compensation |
564,887 |
– |
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Unearned revenue |
132,090 |
– |
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Accrued expenses |
823,984 |
2,219,466 |
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Total current liabilities |
2,043,794 |
2,394,931 |
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Capital lease obligations |
3,663 |
14,284 |
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Deferred rent |
391,314 |
661,389 |
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Total liabilities |
2,438,771 |
3,070,604 |
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Stockholders’ equity: |
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Preferred stock of $.01 par value – authorized 10,000,000 shares; |
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Series A Convertible; issued and outstanding 4,997 shares as of December 31, 2010 and June 30, 2010, respectively |
50 |
50 |
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Common stock of $.01 par value – authorized 40,000,000 shares; issued and outstanding 11,854,028 and 11,702,818 shares as of December 31, 2010 and June 30, 2010, respectively |
118,540 |
117,028 |
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Additional paid-in capital |
218,718,757 |
218,236,723 |
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Accumulated other comprehensive income |
68,738 |
138,650 |
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Accumulated deficit |
(214,875,000) |
(209,174,178) |
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Total stockholders’ equity |
4,031,085 |
9,318,273 |
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Total liabilities and stockholders’ equity |
$ 6,469,856 |
$ 12,388,877 |
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SOURCE Palatin Technologies, Inc.