Full Press Release Details
Palatin Technologies, Inc. Reports Fourth Quarter and
Fiscal Year 2017 Results;
Teleconference and Webcast to be held on September 25,
CRANBURY, NJ September 25, 2017 Palatin
Technologies, Inc. (NYSE MKT: PTN), a biopharmaceutical company
developing targeted, receptor-specific peptide therapeutics for the
treatment of diseases with significant unmet medical need and
commercial potential, today announced results for its fourth
quarter and fiscal year ended June 30, 2017.
Recent and Fiscal Year Significant Highlights
- Under development for Hypoactive
Sexual Desire Disorder ( HSDD ):
2016 reported positive Phase 3 clinical results - both pivotal
trials met the pre-specified co-primary efficacy endpoints of
improvement in desire and decrease in distress associated with low
an exclusive North American license agreement with AMAG
Pharmaceuticals, Inc. ( AMAG ) to develop and
commercialize bremelanotide in February 2017.
$60 million upfront payment
Entered into a collaboration and license agreement
Pharmaceutical Industrial Development Co., Ltd., a subsidiary of
Shanghai Fosun Pharmaceutical (Group) Co., Ltd ( Fosun
Pharma ) in September 2017 for exclusive rights to develop
and commercialize bremelanotide in the territories of mainland
China, Taiwan, Hong Kong S.A.R. and Macau
receive $5 million upfront payment
closely with AMAG on completing the tasks and activities necessary
to file a New Drug Application ( NDA ) with the Food
and Drug Administration ( FDA ).
NDA filing with the FDA for early calendar year 2018.
Patent 7,700,592 issued July 11, 2017, on methods of treating
female sexual dysfunction and HSDD with bremelanotide. The patent
will expire in November 2033.
"In the last year we made tremendous progress with our lead
development program, bremelanotide for HSDD. We met our Phase 3
co-primary endpoints and we licensed the North American rights to
AMAG and the China rights to Fosun Pharma. These were truly
transformational events for Palatin," said Carl Spana, Ph.D.,
President and Chief Executive Officer of Palatin Technologies. "In
addition to advancing the activities required to file an NDA for
bremelanotide with the FDA in early calendar year 2018, we are also
progressing with licensing discussions and negotiations with
multiple potential partners for other regions around the globe. We
are also excited to now be able to devote resources and attention
to our other development programs, which address indications such
as heart failure, ophthalmic disorders and inflammatory bowel
diseases using targeted, receptor-specific peptides which we
Financial Transactions:
2016, Palatin closed on an underwritten offering of units with
gross proceeds of $9.25 million, with net proceeds, after deducting
offering expenses, of approximately $8.5 million. Palatin
shares of common stock and ten-year prefunded Series I warrants to
purchase 2,218,045 shares of common stock at an exercise price of
H warrants to purchase 10,274,646 shares of common stock at an
exercise price of $0.70 per share
2016, Palatin closed on an underwritten public offering of units
with gross proceeds of $16.5 million, with net proceeds, after
deducting offering expenses, of approximately $15.4 million.
shares of common stock and five year Series J warrants to purchase
12,692,310 shares of common stock at an exercise price of $0.80 per
Fourth Quarter and Fiscal 2017 Financial Results
Palatin reported net income of $13.3 million, or
$0.07 per basic and diluted share, for the quarter ended June 30,
2017, compared to a net loss of $(13.4) million, or $(0.09) per
basic and diluted share, for the same period in
The difference between the three months ended June 30, 2017 and
2016 was primarily attributable to the recognition of $33.9 million
in contract revenue pursuant to our license agreement with
For the year ended June 30, 2017, Palatin reported a net loss of
$(13.3) million, or $(0.07) per basic and diluted share compared to
a net loss of $(51.7) million, or $(0.33) per basic and diluted
share for the year ended June 30, 2016.
The decrease in net loss for the year ended June 30, 2017, compared
to the net loss for the year ended June 30, 2016, was primarily
attributable to the recognition of $44.7 million in contract
revenue pursuant to our license agreement with AMAG.
For the quarter and year ended June 30, 2017, Palatin recognized
$33.9 million and $44.7 million, respectively, in contract revenue
related to our license agreement with AMAG.
There were no revenues recorded in the quarter or year ended June
Total operating expenses for the quarter ended June 30, 2017 were
$19.6 million compared to $12.7 million for the comparable quarter
of 2016. For the year ended June 30, 2017, Palatin incurred $55.3
million of operating expenses, compared to $49.3 million for the
year ended June 30, 2016.
The increase in operating expenses was mainly attributable to the
continued progress of Phase 3 clinical trial and development of
bremelanotide for HSDD as well as to the professional services
incurred related to closing our license agreement with
Other Income/Expense
Total other expense, net, was $0.5 million for the quarter ended
June 30, 2017, compared to $0.6 million for the quarter ended June
30, 2016. For the year ended June 30, 2017, total other expense,
net, was $2.3 million, compared to $2.5 million for the year ended
June 30, 2016. Total other expense, net for both fiscal year ended
June 30, 2017 and June 30, 2016 consisted mainly of interest
expense related to venture debt.
Income tax expense was $0.5 million for the quarter and year ended
June 30, 2017 compared to no income tax expense or benefit for the
quarter and year ended June 30, 2016. Income tax expense relates to