Full Press Release Details
FOR RELEASE September 13, 2006 at
| Contacts: | |
| For Palatin Technologies: | For Institutional Investors and Media: |
| Stephen T. Wills, CPA, MST | Carney Duntsch |
| EVP-Operations / Chief Financial Officer | Burns McClellan |
| (609) 495-2200 | (212) 213-0006 |
| info@palatin.com | cduntsch@burnsmc.com |
Technologies, Inc. Reports Fourth Quarter Fiscal Year End 2006 Results; Teleconference
and Webcast Being Held Today at 10:00 a.m. EDT
CRANBURY, NJ September 13,
2006 Palatin Technologies, Inc. (AMEX: PTN) announced today results for its fourth
quarter and fiscal year ended June 30, 2006. Palatin reported a net loss of $7.9 million,
or ($0.11) per basic and diluted share, for the quarter ended June 30, 2006, compared to a
net loss of $5.1 million, or ($0.09) per basic and diluted share, for the same period in
2005. Total revenues in the quarter ended June 30, 2006 were $5.0 million, compared to
$5.8 million for the same period in 2005. As of June 30, 2006, the Company had cash, cash
equivalents and investments totaling $30.7 million.
The increase in the net loss for the
quarter ended June 30, 2006 versus the quarter ended June 30, 2005 was primarily
attributable to increased research and development expenses associated with bremelanotide,
a drug under development in collaboration with King Pharmaceuticals, Inc. (King) to treat
male and female sexual dysfunction, and the Company s development programs for
products to treat obesity and congestive heart failure and lower revenue as a result of
the December 2005 withdrawal from the market of NeutroSpec.
For the years ended June 30, 2006 and
2005, total revenues were $19.7 million and $18.0 million, respectively. Palatin s
net loss for the year ended June 30, 2006 was $29.0 million, or ($0.48) per basic and
diluted share, compared to a net loss of $14.4 million, or ($0.27) per basic and diluted
share, for the year ended June 30, 2005.
We are pleased with our
accomplishments made during the quarter and our progress to date, said Stephen T.
Wills, chief financial officer of Palatin. Our fiscal year 2006 accomplishments
For the quarter ended June 30, 2006,
Palatin had no product sales or royalty revenue. In the comparable quarter of 2005,
Palatin reported $0.8 million in product sales and $0.6 million of royalty revenues
related to NeutroSpec, pursuant to its collaboration agreement with Tyco Healthcare
Mallinckrodt (Mallinckrodt).
For the quarter ended June 30, 2006,
Palatin recognized revenue under its collaboration agreement with King of $4.9 million,
which includes King s share of bremelanotide development costs, and $0.1 million of
contract revenue related to its collaboration with Mallinckrodt for NeutroSpec. In the
comparable quarter of 2005, Palatin recognized $4.2 million of contract revenue from King
and $0.3 million of contract revenue from Mallinckrodt.
Total operating expenses for the
quarter ended June 30, 2006 were $13.2 million compared to $11.0 million for the
comparable quarter of 2005, reflecting increased development costs of bremelanotide,
primarily the costs of two Phase 2B clinical trials in patients with ED.
Palatin s cash, cash equivalents
and investments totaled $30.7 million as of June 30, 2006, compared to $18.1 million at
June 30, 2005, as current year operating expenses were largely offset by net proceeds from
the April 2006 equity offering and the receipt of $10 million from the sale of common
stock and warrants to King related to the collaboration agreement.
Palatin Technologies management
will discuss the fourth quarter financial results for the fiscal year ended June 30, 2006
and provide an update on corporate developments during a conference call and webcast on
September 13, 2006 at 10:00 a.m. EDT.
Conference Call and Webcast Access Information
| Q4-Fiscal Year 2006 Conference Call - Live | 9/13/2006 at 10:00 a.m. EDT | |
| Domestic Dial-In Number | 1-800-811-8845 | |
| International Dial-In Number | 1-913-981-4905 | |
| Q4-Fiscal Year 2006 Conference Call - Replay | 9/13-9/20/2006 | |
| Domestic Dial-In Number | 1-888-203-1112 | |
| International Dial-In Number | 1-719-457-0820 | |
| Enter Pass Code I.D. | 4895950 | |
| Webcast Live and Replay Access | www.palatin.com | |
| The webcast and replay can be accessed by logging on to the investors section of Palatin Technologies' website at www.palatin.com. |
Palatin Technologies, Inc. is a
biopharmaceutical company focused on discovering and developing targeted,
receptor-specific small molecule and peptide therapeutics. The Company s lead product
candidate, bremelanotide, is currently in Phase II clinical trials for both male and
female sexual dysfunction. The Company s internal research and development
capabilities, anchored by its proprietary MIDAS technology, are fueling product
development. Palatin s strategy is to develop products and then form marketing
collaborations with industry leaders in order to maximize their commercial potential. To
date, the Company has formed partnerships with Tyco Healthcare Mallinckrodt and King
Pharmaceuticals. For additional information regarding Palatin, please visit Palatin
Technologies website at www.palatin.com.
Statements about the Company s
future expectations, 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. The Company 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 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 recommence
marketing and gain commercial acceptance of NeutroSpec and 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.
(Financial Statement
PALATIN TECHNOLOGIES,
Statements of Operations Data
| Three Months Ended June 30, | Year Ended June 30, | ||||||||
| 2006 | 2005 | 2006 | 2005 | ||||||
| REVENUES: | |||||||||
| Royalties | $ - | $ 578,403 | $ 1,508,862 | $ 1,586,050 | |||||
| Product sales | - | 766,500 | - | 2,474,325 | |||||
| Licenses, grants and | |||||||||
| contracts | 4,972,704 | 4,500,099 | 18,239,783 | 13,896,818 | |||||
| Total revenues | 4,972,704 | 5,845,002 | 19,748,645 | 17,957,193 | |||||
| OPERATING EXPENSES: | |||||||||
| Cost of product sales | - | 308,167 | 2,041,175 | 534,932 | |||||
| Royalties | - | 83,725 | 299,995 | 328,401 | |||||
| Research and | |||||||||
| development | 11,374,143 | 8,425,738 | 41,013,894 | 25,045,279 | |||||
| General and | |||||||||
| administrative | 1,821,748 | 2,162,974 | 6,843,817 | 7,460,607 | |||||
| Total operating | |||||||||
| expenses | 13,195,891 | 10,980,604 | 50,198,881 | 33,369,219 | |||||
| Loss from operations | (8,223,187 | ) | (5,135,602 | ) | (30,450,236 | ) | (15,412,026 | ) | |
| OTHER INCOME (EXPENSE): | |||||||||
| Investment income | 358,684 | 47,459 | 855,601 | 488,262 | |||||
| Interest expense | (13,045 | ) | (3,541 | ) | (30,522 | ) | (14,487 | ) | |
| Total other income, | |||||||||
| net | 345,639 | 43,918 | 825,079 | 473,775 | |||||
| Loss before income taxes | (7,877,548 | ) | (5,091,684 | ) | (29,625,157 | ) | (14,938,251 | ) | |
| Income tax benefit | - | - | 666,275 | 580,275 | |||||
| NET LOSS | $ (7,877,548 | ) | $ (5,091,684 | ) | $ (28,958,882 | ) | $ (14,357,976 | ) | |
| Basic and diluted net loss per | |||||||||
| common share | $ (0.11 | ) | $ (0.09 | ) | $ (0.48 | ) | $ (0.27 | ) | |
| Weighted average number of | |||||||||
| common shares outstanding | |||||||||
| used in computing basic | |||||||||
| and diluted net loss per | |||||||||
| common share | 68,948,204 | 54,056,264 | 60,356,610 | 53,861,182 |
PALATIN TECHNOLOGIES,
Consolidated Balance
| June 30, 2006 | June 30, 2005 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ 28,333,211 | $ 15,720,364 | |||
| Available-for-sale investments | 2,330,834 | 2,385,570 | |||
| Accounts receivable | 69,591 | 5,441,425 | |||
| Inventories | - | 1,382,160 | |||
| Prepaid expenses and other current assets | 1,453,650 | 1,889,269 | |||
| Total current assets | 32,187,286 | 26,818,788 | |||
| Property and equipment, net | 6,347,705 | 6,464,324 | |||
| Restricted cash | 475,000 | 475,000 | |||
| Other assets | 1,037,296 | 1,408,158 | |||
| Total assets | $ 40,047,287 | $ 35,166,270 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Current liabilities: | |||||
| Capital lease obligations, current portion | $ 86,564 | $ 11,269 | |||
| Accounts payable | 3,092,962 | 4,773,297 | |||
| Accrued expenses | 4,466,428 | 3,925,406 | |||
| Accrued compensation | 803,900 | 545,870 | |||
| Deferred revenue, current portion | 3,995,575 | 3,790,828 | |||
| Total current liabilities | 12,445,429 | 13,046,670 | |||
| Capital lease obligations, net of current portion | 229,585 | 18,934 | |||
| Deferred rent, net of current portion | 2,358,550 | 3,001,980 | |||
| Deferred revenue, net of current portion | 6,713,942 | 9,873,438 | |||
| Total liabilities | 21,747,506 | 25,941,022 | |||
| Commitments and contingencies (Note 8) | |||||
| Stockholders' equity: | |||||
| Preferred stock of $.01 par value - authorized 10,000,000 shares; | |||||
| Series A Convertible; issued and outstanding 9,997 and 11,447 shares | |||||
| as of June 30, 2006 and 2005, respectively | 100 | 114 | |||
| Common stock of $.01 par value - authorized 150,000,000 shares; | |||||
| issued and outstanding 70,878,521 and 54,236,544 shares as of | |||||
| June 30, 2006 and 2005, respectively | 708,785 | 542,365 | |||
| Additional paid-in capital | 178,089,176 | 140,167,431 | |||
| Accumulated other comprehensive loss | (54,736 | ) | - | ||
| Accumulated deficit | (160,443,544 | ) | (131,484,662 | ) | |
| Total stockholders' equity | 18,299,781 | 9,225,248 | |||
| Total liabilities and stockholders' equity | $ 40,047,287 | $ 35,166,270 |