Full Press Release Details
FOR RELEASE SEPTEMBER
14, 2007 at 7:30 a.m. EDT
Palatin Technologies, Inc.
Reports Fourth Quarter and Fiscal Year End 2007
Results; Announces Teleconference andWebcast
CRANBURY, NJ September 14,
2007 Palatin Technologies, Inc. (AMEX: PTN) announced today results for its fourth
quarter and fiscal year ended June 30, 2007. Palatin reported a net loss of $6.1 million,
or ($0.07) per basic and diluted share, for the quarter ended June 30, 2007, compared to a
net loss of $7.9 million, or ($0.11) per basic and diluted share, for the same period in
2006. Total revenues in the quarter ended June 30, 2007 were $2.6 million, compared to
$5.0 million for the same period in 2006. As of June 30, 2007, the Company had cash, cash
equivalents and investments totaling $33.8 million.
The decrease in the net loss for the
quarter ended June 30, 2007 versus the quarter ended June 30, 2006 was primarily
attributable to decreased research and development spending on bremelanotide, the
Company s drug under development for the treatment of erectile dysfunction (ED) and
female sexual dysfunction (FSD). Cost reimbursement revenue from King Pharmaceuticals,
Inc. (King) also decreased as a result of the lower spending.
For the years ended June 30, 2007 and
2006, total revenues were $14.4 million and $19.7 million, respectively. Palatin s
net loss for the year ended June 30, 2007 was $27.8 million, or ($0.36) per basic and
diluted share, compared to a net loss of $29.0 million, or ($0.48) per basic and diluted
share, for the year ended June 30, 2006.
FISCAL YEAR 2007 AND
Significant developments in
Palatin s business since the end of its last fiscal year include the following:
(Financial Statement Data Follows)
LICENSE, GRANTS AND CONTRACTS
quarter ended June 30, 2007, Palatin recognized revenue under its collaboration agreement
with King of $1.8 million, which includes King s share of bremelanotide development
costs, and $0.7 million of contract revenue related to its February 2007 collaboration
with AstraZeneca. In the comparable quarter of 2006, Palatin recognized $4.9 million of
contract revenue from King, reflecting significantly higher cost reimbursement revenue
resulting from Palatin s clinical study activities.
expenses for the quarter ended June 30, 2007 were $9.1 million versus $13.2 million for
the comparable quarter of 2006, reflecting lower development costs of bremelanotide
following the completion of two Phase 2B clinical trials in patients with ED, which were
partially offset by other research and development spending and higher stock-based
compensation charges.
cash equivalents and investments totaled $33.8 million as of June 30, 2007, compared to
$30.7 million at June 30, 2006, as current year operating expenses were largely offset by
net proceeds from the February 2007 stock offering and the receipt of $10 million from
AstraZeneca upon the signing of the companies research collaboration and license
Palatin Technologies management
will discuss the fourth quarter and year end financial results for the fiscal year ended
June 30, 2007 and provide an update on corporate developments during a conference call and
webcast on September 18, 2007 at 10:00 a.m. EDT.
Webcast Access Information
| Q4-Fiscal Year 2007 Conference Call - Live | 9/18/2007 at 10:00 a.m. EDT | |
| Domestic Dial-In Number | 1-866-454-4203 | |
| International Dial-In Number | 1-913-312-6603 | |
| Q4-Fiscal Year 2007 Conference Call - Replay | 9/18-9/25/2007 | |
| Domestic Dial-In Number | 1-888-203-1112 | |
| International Dial-In Number | 1-719-457-0820 | |
| Enter Pass Code I.D. # | 4280242 | |
| 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 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. The Company currently has collaborations with AstraZeneca and the Mallinckrodt
division of Covidien. For additional information regarding Palatin, please visit Palatin
Technologies website at http://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 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 recommence
marketing and gain commercial acceptance of NeutroSpec , 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.
| 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 |
PALATIN TECHNOLOGIES,
Consolidated Statement of Operations Data
| Year Ended June 30, | ||||||||||||
| 2007 | 2006 | 2005 | ||||||||||
| REVENUES: | ||||||||||||
| Licenses, grants and contracts | $ | 14,405,665 | $ | 18,239,783 | $ | 13,896,818 | ||||||
| Royalties | - | 1,508,862 | 1,586,050 | |||||||||
| Product sales | - | - | 2,474,325 | |||||||||
| Total revenues | 14,405,665 | 19,748,645 | 17,957,193 | |||||||||
| OPERATING EXPENSES: | ||||||||||||
| Cost of product sales | - | 2,041,175 | 534,932 | |||||||||
| Royalties | - | 299,995 | 328,401 | |||||||||
| Research and development | 36,913,739 | 41,013,894 | 25,045,279 | |||||||||
| General and administrative | 7,293,090 | 6,843,817 | 7,460,607 | |||||||||
| Total operating expenses | 44,206,829 | 50,198,881 | 33,369,219 | |||||||||
| Loss from operations | (29,801,164 | ) | (30,450,236 | ) | (15,412,026 | ) | ||||||
| OTHER INCOME (EXPENSE): | ||||||||||||
| Investment income | 1,324,671 | 855,601 | 488,262 | |||||||||
| Interest expense | (53,339 | ) | (30,522 | ) | (14,487 | ) | ||||||
| Total other income, net | 1,271,332 | 825,079 | 473,775 | |||||||||
| Loss before income taxes | (28,529,832 | ) | (29,625,157 | ) | (14,938,251 | ) | ||||||
| Income tax benefit | 778,308 | 666,275 | 580,275 | |||||||||
| NET LOSS | $ | (27,751,524 | ) | $ | (28,958,882 | ) | $ | (14,357,976 | ) | |||
| Basic and diluted net loss per common share | $ | (0.36 | ) | $ | (0.48 | ) | $ | (0.27 | ) | |||
| Weighted average number of common shares outstanding | ||||||||||||
| used in computing basic and diluted net loss per common | ||||||||||||
| share | 76,204,160 | 60,356,610 | 53,861,182 |
PALATIN TECHNOLOGIES,
Consolidated Balance Sheet Data
| June 30, 2007 | June 30, 2006 | ||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 31,447,615 | $ | 28,333,211 | |||||
| Available-for-sale investments | 2,323,642 | 2,330,834 | |||||||
| Accounts receivable | 607,841 | 69,591 | |||||||
| Prepaid expenses and other current assets | 1,008,464 | 1,453,650 | |||||||
| Total current assets | 35,387,562 | 32,187,286 | |||||||
| Property and equipment, net | 6,070,226 | 6,347,705 | |||||||
| Restricted cash | 475,000 | 475,000 | |||||||
| Other assets | 848,446 | 1,037,296 | |||||||
| Total assets | $ | 42,781,234 | $ | 40,047,287 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities: | |||||||||
| Capital lease obligations and notes payable, current portion | $ | 216,841 | $ | 86,564 | |||||
| Accounts payable | 1,120,894 | 3,092,962 | |||||||
| Accrued expenses | 2,420,837 | 4,466,428 | |||||||
| Accrued compensation | 941,300 | 803,900 | |||||||
| Deferred revenue, current portion | 4,864,833 | 3,995,575 | |||||||
| Total current liabilities | 9,564,705 | 12,445,429 | |||||||
| Capital lease obligations and notes payable, net of current portion | 275,126 | 229,585 | |||||||
| Deferred rent, net of current portion | 1,966,628 | 2,358,550 | |||||||
| Deferred revenue, net of current portion | 12,443,087 | 6,713,942 | |||||||
| Total liabilities | 24,249,546 | 21,747,506 | |||||||
| Commitments and contingencies | |||||||||
| Stockholders equity: | |||||||||
| Preferred stock of $.01 par value authorized 10,000,000 shares; | |||||||||
| Series A Convertible; issued and outstanding 4,997 and 9,997 shares | |||||||||
| as of June 30, 2007 and 2006, respectively | 50 | 100 | |||||||
| Common stock of $.01 par value authorized 150,000,000 shares; | |||||||||
| issued and outstanding 85,126,915 and 70,878,521 shares as of | |||||||||
| June 30, 2007 and 2006, respectively | 851,269 | 708,785 | |||||||
| Additional paid-in capital | 205,875,438 | 178,089,176 | |||||||
| Accumulated other comprehensive loss | - | (54,736 | ) | ||||||
| Accumulated deficit | (188,195,069 | ) | (160,443,544 | ) | |||||
| Total stockholders equity | 18,531,688 | 18,299,781 | |||||||
| Total liabilities and stockholders equity | $ | 42,781,234 | $ | 40,047,287 |