Full Press Release Details
Palatin Technologies, Inc. Reports Fourth Quarter
and Fiscal Year End 2015 Results
CRANBURY, NJ - September 21, 2015 - 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, 2015.
Fiscal Year Ended June 30, 2015 and Recent Highlights
Fourth Quarter and Fiscal Year Ended 2015 Results
Palatin reported a net loss of $12.1 million, or $(0.09) per basic and diluted share, for the quarter ended June 30, 2015, compared to a net loss of $4.3 million, or $(0.04) per basic and diluted share, for the same period in 2014.
The increase in net loss for the quarter ended June 30, 2015 compared to the net loss for the quarter ended June 30, 2014 was the result of an increase in operating expenses primarily related to our bremelanotide for FSD Phase 3 development program.
For the year ended June 30, 2015, Palatin reported a net loss of $17.7 million, or $(0.15) per basic and diluted share compared to a net loss of $13.9 million, or $(0.13) per basic and diluted share for the year ended June 30, 2014.
The increase in net loss for the year ended June 30, 2015, compared to the net loss for the year ended June 30, 2014 was mainly attributable to the development costs for the initiation and progression of the Phase 3 clinical trials of bremelanotide for FSD.
For the year ended June 30, 2015, Palatin recognized $12.9 million of license and contract revenue under the agreement with Gedeon Richter. There were no revenues recorded in the quarter ended June 30, 2015 or in the year ended June 30, 2014.
Operating expenses for the quarter ended June 30, 2015 were $11.8 million, compared to $4.3 million for the comparable quarter of 2014. For the year ended June 30, 2015, Palatin incurred $30.2 million of operating expenses, compared to $15.8 million for the year ended June 30, 2014.
The increase in operating expenses for the year and quarter ended June 30, 2015 was primarily the result of higher period costs related to Phase 3 clinical trial program costs for bremelanotide for the treatment of FSD.
Palatin's cash and cash equivalents were $27.3 million as of June 30, 2015 compared to cash and cash equivalents of $12.2 million at June 30, 2014. Current liabilities were $7.4 million as of June 30, 2015, compared to $1.8 million, net of $1.0 million of deferred income, as of June 30, 2014.
Palatin believes that its existing capital resources, together with approximately $29.7 million received from the July 2015 financings will be adequate to fund planned operations through the quarter ending September 30, 2016. Assuming the Phase 3 clinical trials of bremeloanotide for FSD are successful, as to which there can be no assurance, the Company will need additional funding to complete submission of required regulatory applications to the FDA for bremelanotide for FSD.
CONFERENCE CALL / WEBCAST
Palatin will host a conference call and webcast on September 21, 2015 at 11:00 a.m. Eastern time to discuss the results of operations and an update on corporate developments in greater detail. Individuals interested in listening to the conference call live can dial 1-888-505-4369 (domestic) or 1-719-325-2393 (international), pass code 989803. 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 1-888-203-1112 (domestic) or 1-719-457-0820 (international), pass code 989803. The webcast and telephone replay will be available through September 28, 2015.
About Palatin Technologies, Inc.
Palatin Technologies, Inc. is a biopharmaceutical company developing targeted, receptor-specific peptide therapeutics for the treatment of diseases with significant unmet medical need and commercial potential. 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's website at www.Palatin.com.
Forward-looking Statements
Statements in this press release that are not historical facts, including statements about future expectations of Palatin Technologies, Inc., such as statements about clinical trial results, potential actions by regulatory agencies including the FDA, regulatory plans, development programs, business development and licensing programs, proposed indications for product candidates and market potential for product candidates, 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. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause Palatin's actual results to be materially different from its historical results or from any results expressed or implied by such forward-looking statements. Palatin's actual results may differ materially from those discussed in the forward-looking statements for reasons including, but not limited to, results of clinical trials, regulatory actions by the FDA and the need for regulatory approvals, Palatin's ability to fund development of its technology and establish and successfully complete clinical trials, the length of time and cost required to complete clinical trials and submit applications for regulatory approvals, entering into marketing and distribution agreements, products developed by competing pharmaceutical, biopharmaceutical and biotechnology companies, commercial acceptance of Palatin's products, 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.
| Palatin Technologies Investor Inquiries: | Palatin Technologies Media Inquiries: |
| Stephen T. Wills, CPA, MST | Paul Arndt, MBA, LifeSci Advisors, LLC |
| Chief Operating Officer / Chief Financial Officer | Managing Director |
| Tel: (609) 495-2200 / info@Palatin.com | Tel: (646) 597-6992 / Paul@LifeSciAdvisors.com |
(Financial Statement Data Follows)
PALATIN TECHNOLOGIES, INC.
Consolidated Statements of Operations
| Year Ended June 30, | ||||||||||||
| 2015 | 2014 | 2013 | ||||||||||
| REVENUES: | ||||||||||||
| License and contract | $ | 12,951,730 | $ | - | $ | 10,361 | ||||||
| OPERATING EXPENSES: | ||||||||||||
| Research and development | 24,560,233 | 10,826,921 | 10,528,691 | |||||||||
| General and administrative | 5,677,654 | 4,960,731 | 5,066,830 | |||||||||
| Total operating expenses | 30,237,887 | 15,787,652 | 15,595,521 | |||||||||
| Loss from operations | (17,286,157 | ) | (15,787,652 | ) | (15,585,160 | ) | ||||||
| OTHER INCOME (EXPENSE): | ||||||||||||
| Investment income | 35,439 | 18,923 | 42,734 | |||||||||
| Interest expense | (661,697 | ) | (6,211 | ) | (8,411 | ) | ||||||
| Foreign exchange transaction loss | (284,656 | ) | - | - | ||||||||
| Increase in fair value of warrants | - | - | (7,069,165 | ) | ||||||||
| Gain on disposition of supplies and equipment | - | - | 4,620 | |||||||||
| Total other income (expense), net | (910,914 | ) | 12,712 | (7,030,222 | ) | |||||||
| Loss before income taxes | (18,197,071 | ) | (15,774,940 | ) | (22,615,382 | ) | ||||||
| Income tax benefit | 531,508 | 1,846,646 | 1,753,208 | |||||||||
| NET LOSS | $ | (17,665,563 | ) | $ | (13,928,294 | ) | $ | (20,862,174 | ) | |||
| Basic and diluted net loss per common share | $ | (0.15 | ) | $ | (0.13 | ) | $ | (0.21 | ) | |||
| Weighted average number of common shares outstanding used in computing basic and diluted net loss per common share | 121,014,506 | 106,679,476 | 97,618,714 |
PALATIN TECHNOLOGIES, INC.
Consolidated Balance Sheets
| June 30, 2015 | June 30, 2014 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 27,299,268 | $ | 12,184,605 | ||||
| Prepaid expenses and other current assets | 1,896,747 | 156,393 | ||||||
| Total current assets | 29,196,015 | 12,340,998 | ||||||
| Property and equipment, net | 123,158 | 160,748 | ||||||
| Other assets | 155,279 | 57,308 | ||||||
| Total assets | $ | 29,474,452 | $ | 12,559,054 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,106,484 | $ | 261,280 | ||||
| Accrued expenses | 6,223,483 | 1,508,958 | ||||||
| Capital lease obligations | 25,871 | - | ||||||
| Unearned revenue | - | 1,000,000 | ||||||
| Total current liabilities | 7,355,838 | 2,770,238 | ||||||
| Notes payable, net of discount | 9,781,086 | - | ||||||
| Capital lease obligations | 41,749 | - | ||||||
| Other non-current liabilities | 91,304 | - | ||||||
| Total liabilities | 17,269,977 | 2,770,238 | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock of $0.01 par value - authorized 10,000,000 shares; | ||||||||
| Series A Convertible; issued and outstanding 4,697 shares as of June 30, 2015 and 2014, respectively | 47 | 47 | ||||||
| Common stock of $0.01 par value - authorized 300,000,000 shares; | ||||||||
| issued and outstanding 57,128,433 shares as of June 30, 2015 and 39,416,595 as of June 30, 2014, respectively | 571,284 | 394,166 | ||||||
| Additional paid-in capital | 303,332,460 | 283,428,356 | ||||||
| Accumulated deficit | (291,699,316 | ) | (274,033,753 | ) | ||||
| Total stockholders' equity | 12,204,475 | 9,788,816 | ||||||
| Total liabilities and stockholders' equity | $ | 29,474,452 | $ | 12,559,054 |